Lenders Mull Revised Credit Cover for SMEs

Plans afoot to support such units to absorb shocks, rework strategies

- Abhijit Lele

With micro, small and medium enterprises (MSMEs) being more vulnerable to trade tariff shocks, lenders are toying with the idea to suggest revision in terms for credit guarantee cover as part of the support package.

The SMEs may have relative advantage for sectors against countries like China, which face higher reciprocal tariffs. They would need incentives, bankers said.

"The situation is evolving. We are keeping track of developments," a senior State Bank of India (SBI) executive said.