Commissioned by Michael & Susan Dell Foundation, the project promoted urban micro and small enterprises in India through technical assistance to non-bank financial institutions. MSC provided advisory services to five institutions—an MSME-focused financial institution, two microfinance institutions, a leading agent network manager, and a peer-to-peer network.
The technical support included a survey in five states in India, development of MSME strategies for the institutions, and the development of products, processes, and systems. We also developed a statistical credit engine based on predictive data analytics that helped underwrite enterprise loans.
MSC supported the financial institutions to pilot-test a new product and ensured that they achieved success. The pilot scaled to a combined INR 1 billion (USD 15 million) portfolio in less than a year. After the project, the partner institutions rolled out the microenterprise lending (MEL) product and diversified into new business segments. The MEL product became a runaway success and an inspiration for the sector to adopt a successful model.