Priority-sector NBFC body to plug MSME loan shortfall

PSLAI to transform MSME lending with a focus on liberalized risk weightage, policy reforms

- Gopika Gopakumar

India's non-bank lenders have come together to set up a first-of-its-kind industry body for priority sector lending. The Priority Sector Lenders Association of India, or PSLAI, has been set up under the aegis of Indian Software Product Industry Round Table (iSPIRT), a non-profit think tank, to solve the issues of credit shortfall to small businesses.

Lenders like UGRO Capital, IIFL, fintechs like GetAdvantage have already joined as founding members. iSPIRT is in talks with Small Industries Development Bank of India (SIDBI) and large banks like State Bank of India to join the association, Sharad Sharma, co-founder, iSPIRT, said.