CredAble’s NBFC Joins SIDBI’s CGTMSE as a Member Lending Institution to Support MSME Growth 

~CredAble’s NBFC is proud to join SIDBI’s CGTMSE scheme as a member lending institution. This marks a pivotal step in our ongoing efforts to make financing more accessible and affordable for micro and small enterprises in India.

In a landmark move to enhance credit availability for Micro and Small Enterprises (MSEs), the Ministry of Micro, Small, and Medium Enterprises (MSMEs) and the Small Industries Development Bank of India (SIDBI) set up the CGTMSE—the Credit Guarantee Fund Trust for Micro and Small Enterprises. This scheme facilitates institutional credit access for MSEs by offering guaranteed coverage to member lending institutions. 

Along with the expansion of CredAble’s digital lending capabilities, its NBFC arm—Equentia Financial Service Private Limited (a non-deposit-taking NBFC)—has recently joined CGTMSE as a member lending institution.  

This membership is a significant step forward in CredAble’s journey to address the working capital gaps of the MSME sector in India. 

Through the CGTMSE Udaan Guarantee Scheme, loans extended by CredAble’s NBFC wing to micro and small businesses are now secured with a 75% guarantee cover for standard loans. This framework offers significant risk mitigation, protecting CredAble against potential defaults while expanding credit availability to underserved segments. 

These benefits, combined with CGTMSE’s guarantee mechanism, strengthen CredAble’s ability to deepen its wallet share and extend short-term working capital loans to micro and small enterprises. A large portion of the loans extended under the CGTMSE scheme by CredAble will be part of the supply chain financing and working capital loans. 

Currently, close to one-third of Equentia Financial Service’s lending book is dedicated to micro and small enterprises. After qualifying as a member lending institution for the CGTMSE scheme, CredAble plans to grow this to 40-45% of its lending portfolio—further increasing access to MSE credit. 

Commenting on this milestone, Manu Prakash, Managing Director, Lending and Capital Markets of CredAble, said: 

“CredAble’s working capital financing suite is a game-changer for businesses in India. We are excited to take things up several notches by becoming a member lending institution under SIDBI’s CGTMSE scheme. Through this initiative, we plan to expand our outreach and contribute to the financial inclusion of micro and small business segments across India, which have been traditionally overlooked by conventional lenders. This marks a momentous milestone in our growth journey, and we look forward to growing our lending share and supporting the working capital needs of these critical economic drivers.” 

By facilitating timely access to working capital, CredAble empowers clients in industries such as manufacturing, e-commerce, logistics, and services to outpace their competitors. 

In a commendable move to inject more capital into the MSME sector, the Union Budget 2025 has introduced a significant enhancement of credit availability with the credit guarantee cover for micro and small enterprises extended from INR 5 crore to INR 10 crore. One of the significant changes in the budget is the revised classification criteria for MSMEs. The budget has increased the turnover cap for micro-enterprises to INR 10 crore and small enterprises to INR 100 crore. This change allows more businesses to qualify, expanding CredAble’s reach as a member lending institution under the CGTMSE scheme to better support micro and small enterprises. 

Strong government backing coupled with innovative, tech-enabled offerings from FinTechs like CredAble is driving advancements in the digital lending space, promising to substantially increase MSMEs’ access to working capital in the years to come. 

With an expanding team of industry specialists and global delivery frameworks, the company is continuously innovating financial products to enhance agility, offering solutions that accelerate value and expedite clients’ time-to-market trajectories. 

As a member lending institution under the CGTMSE scheme, CredAble is also well-positioned to scale its supply chain offerings and bridge the working capital gap for micro and small sellers catering to larger corporations. 

CredAble remains committed to broadening its lending horizons while empowering India’s micro and small enterprises through sustainable and easily accessible financing solutions.