Exclusive Interview with Nishith Maheshwari, Head of Partnerships at InCred Finance: Boosting MSME Culture and Financing Needs in India

In an exclusive interview with CXOToday, Nishith Maheshwari, Head of Partnerships at InCred Finance, shared insights on how government benefits and subsidies can boost the MSME culture in India and how lenders can support the financing needs of small businesses.

Maheshwari highlighted the critical challenges faced by MSMEs in India, including limited access to finance, infrastructure constraints, and skill gaps. He emphasized the importance of government intervention through initiatives like credit guarantee schemes and collateral-free credit to improve financial accessibility for MSMEs. Additionally, he mentioned the need for tailored skill development programs to empower small businesses and drive their growth.

From a lender’s perspective, Maheshwari discussed how subsidies on green energies and tax benefits can encourage entrepreneurial culture in India. He explained that tax benefits can help businesses redirect savings towards essential areas like technology and infrastructure investments, while subsidies can reduce the upfront costs of adopting green technologies, making green projects more financially viable for smaller companies.

Regarding the upcoming budget in 2024, Maheshwari expressed optimism about the potential for easier MSME loans. He mentioned the government’s efforts to enhance credit guarantee schemes, provide collateral-free equipment financing, and increase credit limits for Mudra loans, which will benefit smaller businesses. He also highlighted the shift towards underwriting based on digital footprints and alternative data sources, making it easier for younger businesses to access financial support.

Maheshwari also emphasized the importance of convenient loan disbursement for MSMEs, noting that quick and efficient capital is essential for their smooth operation. He discussed the digitized credit journey at InCred Finance, which ensures minimal documentation, transparency, and lower turnaround times for loan disbursement.

In terms of supporting tech upgrades and green transitions, Maheshwari suggested that private lenders can offer specialized loan products tailored for technology advancements and green practices. He emphasized the need for flexible repayment schedules that align with the cash flow patterns of businesses, especially during the initial phases of technology adoption or green transitions.

Furthermore, Maheshwari highlighted the role of private lenders in supporting the skill development of entrepreneurs. He suggested collaborations with digital learning platforms to offer easy payment solutions for online courses and resources tailored to entrepreneurs’ needs. Additionally, he mentioned promoting entrepreneurial ecosystems that connect entrepreneurs with potential investors and provide networking opportunities.

Overall, Maheshwari emphasized the significant role that MSMEs can play in realizing the vision of Viksit Bharat. He highlighted their contribution to job creation, economic growth in tier-2 and tier-3 cities, and promotion of entrepreneurship. He also mentioned the potential for MSMEs to leverage digital technologies to enhance operational efficiency, expand into new markets, and strengthen competitiveness in line with Viksit Bharat’s agenda for digital transformation.
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