New Delhi, May 17 -- The Indian government is taking steps to bolster the underwriting model for micro, small, and medium enterprises (MSMEs) to facilitate easier access to loans for these businesses.
Underwriting is the process through which lenders evaluate risks to safeguard their interests, and the proposed development aims to reduce defaults by MSMEs while increasing financing opportunities for smaller businesses, reported Mint.
According to sources familiar with the matter, a sub-group has been recently formed to strengthen the underwriting model and expand the use of digital public infrastructure for MSMEs and self-help groups.
This sub-group falls under the purview of a working group established by the Department of Expenditur...