Promotion of urban micro and small enterprises through technical assistance to NBFCs, India

• Oct 25, 2018
• 1 min

MSC provided technical assistance to non-bank financial institutions to promote the growth and sustainability of urban micro and small enterprises in India.

MSC advised 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 of 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.

The Michael & Susan Dell Foundation commissioned this project.