SME FINANCE

SME finance is the funding of small and medium-sized enterprises, and represents a major function of the general business finance market – in which capital for different types of firms are supplied, acquired, and coasted or priced. Capital is supplied through the business finance market in the form of bank loans and overdrafts; leasing and hirepurchase arrangements; equity/corporate bond issues; venture capital or private equity; asset-based finance such as factoring and invoice discounting, and government funding in the form of grants or loans. In this research paper focus has been laid down on why is strengthening SME financing in India important to reduce debt gap, what are the Alternate lending platforms for fixing India's financial inclusion problem, becoming enablers for SME funding and the various challenges faced, alternate lending platforms to the rescue, the benefits of financial inclusion for India's MSMEs, innovative early stage financing for SMEs in India and the various MSME finance challenges.