“The Government and the Finance Ministry continues to identify the MSME sector as being critical towards increasing GDP & employment. The recapitalization of the PSU banks up to Rs 5 lakh crores and allocation of Rs 3 lakh crores in MUDRA loans ensures a higher availability of formal finance for credit-starved MSME segments. Another huge step towards boosting the growth prospects of MSMEs is the reduction of corporate tax to 25% for enterprises with a turnover of up to Rs 250 crores. The development of unique identities along the lines of AADHAAR for individual enterprises will enable us to further our efforts towards financial inclusion, as we can extend digital credit services to MSMEs with little to no documentation. The extension of Kisan Credit card to fisheries & animal husbandry farmers and the allocation of Rs.10,000 crore for fisheries & aquaculture, animal husbandry funds further adds to the Government’s efforts towards absorbing more segments into the formal financial ecosystem” said Gaurav Hinduja, Co-founder of Capital Float.
“The Finance ministry has demonstrated incredible foresight. We appreciate that the Finance Ministry acknowledged the importance of digital lenders like Capital Float in aiding the growth of the MSME sector. As founding members of The Digital Lenders Association of India (DLAI), we met with the Finance Ministry, along with other leading Fintech lenders, last year and presented a whitepaper with recommendations to foster Fintech lending. We’re delighted to see those suggestions being incorporated in spirit and in letter. These include increased capital injection into the MUDRA Yojna up to Rs 3 lakh crores & doubling the allocation to the Digital India initiative. In addition, our request to access funds from MUDRA is also being considered by the Ministry, as they are reviewing the refinancing policy and eligibility criteria for NBFCs. We also welcome Mr Jaitley’s forward-looking approach towards adopting blockchain, which will play a crucial role in shaping digital payments in the country” said Sashank Rishyasringa, Co-founder of Capital Float.