Funding
Sitharaman asks SIDBI to design cash flow MSME loans, flags Rs 8.1 trn in dues
Finance Minister Nirmala Sitharaman on Monday asked SIDBI and the banking system to go beyond standard MSME products and design cash flow based loans. She suggested repayment cycles linked to harvest for agri processing firms, export windows for textile exporters, and seasonal earnings for tourism units. Sitharaman also flagged delayed payments to MSMEs, with an estimated Rs 8.1 trillion locked in dues across the value chain. The SME read, financing built around how the business actually earns may finally reach the small end of the market.