Ecom boosts MSME financing, eases loan access: Icrier survey

Ecommerce integration helps micro-, small, and medium- enterprises (MSMEs) mitigate financial barriers by fostering business expansion and creating a stronger information ecosystem that helps them receive external finance and collateral-free loans, according to a survey by the Indian Council for Research on International Economic Relations (Icrier).

- HARSH KUMAR

The New Delhi-based think tank found in its survey that among ecommerce-integrated firms, 51 per cent found their ecommerce presence useful in raising external finance from banks and non-banking financial corporations. Medium (60 per cent) and small (55 per cent) enterprises do better on this front than micro enterprises (48 per cent).

"Additionally, 30 per cent of integrated firms found ecommerce beneficial for raising collateral-free loans, with medium firms (33 per cent) leading, followed by small (31 per cent), and micro (29 per cent),". the survey found.