MSME credit to grow at 12-14% over next 5 years: Icra

The credit to micro, small and medium enterprises (MSMEs) is expected to grow at 12-14% over the next five years, helped by higher lending by non banking finance companies (NBFC) to the segment, says a report.
As on March 2017, credit to MSMEs stood at Rs 16 lakh crore. NBFC and housing finance companies are expected to expand at about 20-21% compounded annual growth rate (CAGR) in this space during the period, while bank credit to this segment, which accounted for about 84% of total MSME credit, is estimated to grow at a lower CAGR of 9-11%, according to a report by Icra.
NBFC and housing finance companies are expected to expand at about 20-21 per cent compounded annual growth rate (CAGR) in this space during the period, while bank credit to this segment, which accounted for about 84 per cent of total MSME credit, is estimated to grow at a lower CAGR of 9-11 per cent, according to a report by IcraBSE 0.72 %.

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