Why MSMEs Still Face a Credit Crunch
Credit Gap Remains Large
Despite a lending surge, MSMEs still face a ₹30 lakh crore credit gap.
Bank credit to MSMEs touched ₹35.2 lakh crore (March 2025), yet demand remains unmet.
Main Reasons for the Crunch
• NBFC Withdrawal
NBFCs have reduced unsecured MSME lending due to rising defaults and tighter risk controls
• Rising NPAs & Risk Aversion
Higher delinquencies have made lenders more cautious, pushing them toward safer, secured loans.
• Structural Problems
Many MSMEs lack collateral, formal financial records, or reliable credit history.
This makes lenders hesitant despite strong credit growth.
• Inclusion Gap Persists
Formal credit is growing, but many viable MSMEs still remain outside the formal lending ecosystem.
Impact on MSMEs
Shortage of working capital and funds for expansion.
Dependence on informal lenders with higher costs.
Increased vulnerability for sectors reliant on steady cash flow or exports.
Broader Implications
India needs stronger cash-flow based lending, alternative data-based credit scoring, and collateral-free financing frameworks.
Improving MSME credit access is essential for employment, exports, and economic resilience.
https://t.me/interview_lib
Credit Gap Remains Large
Despite a lending surge, MSMEs still face a ₹30 lakh crore credit gap.
Bank credit to MSMEs touched ₹35.2 lakh crore (March 2025), yet demand remains unmet.
Main Reasons for the Crunch
• NBFC Withdrawal
NBFCs have reduced unsecured MSME lending due to rising defaults and tighter risk controls
• Rising NPAs & Risk Aversion
Higher delinquencies have made lenders more cautious, pushing them toward safer, secured loans.
• Structural Problems
Many MSMEs lack collateral, formal financial records, or reliable credit history.
This makes lenders hesitant despite strong credit growth.
• Inclusion Gap Persists
Formal credit is growing, but many viable MSMEs still remain outside the formal lending ecosystem.
Impact on MSMEs
Shortage of working capital and funds for expansion.
Dependence on informal lenders with higher costs.
Increased vulnerability for sectors reliant on steady cash flow or exports.
Broader Implications
India needs stronger cash-flow based lending, alternative data-based credit scoring, and collateral-free financing frameworks.
Improving MSME credit access is essential for employment, exports, and economic resilience.
https://t.me/interview_lib
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A gist of everything you have to prepare for IBPS PO Interview :-
1) HR questions like Strengths, weakness, goals, etc.
2) Self related questions, example your state, city, family
3) Your educational background, especially your college subject
4) Banking awareness like repo rate, negotiable instruments, etc.
5) Work experience related questions for working people
6) Situational based questions related to day to day banking
7) Current issues
8) Website of the bank of your preference
Source :- https://t.me/interview_lib
1) HR questions like Strengths, weakness, goals, etc.
2) Self related questions, example your state, city, family
3) Your educational background, especially your college subject
4) Banking awareness like repo rate, negotiable instruments, etc.
5) Work experience related questions for working people
6) Situational based questions related to day to day banking
7) Current issues
8) Website of the bank of your preference
Source :- https://t.me/interview_lib
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IBPS PO Interview Call Letter OUT
https://ibpsreg.ibps.in/crppoxvjun25/intcla_dece25/login.php?appid=d2f00ce439bee038a4077cb17dc8db77
https://ibpsreg.ibps.in/crppoxvjun25/intcla_dece25/login.php?appid=d2f00ce439bee038a4077cb17dc8db77
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Interview Library
IBPS PO Interview Call Letter OUT https://ibpsreg.ibps.in/crppoxvjun25/intcla_dece25/login.php?appid=d2f00ce439bee038a4077cb17dc8db77
Mock Enrolled Candidates,
Kindly check your dates and confirm your availability for the session in DMs 🙏
Kindly check your dates and confirm your availability for the session in DMs 🙏
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Guys
We are suddenly receiving multiple requests for IBPS PO Mock interviews.
Please give us some time to process them..🙏
We are trying to accommodate as many as we can
We are suddenly receiving multiple requests for IBPS PO Mock interviews.
Please give us some time to process them..🙏
We are trying to accommodate as many as we can
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We have sent IBPS and SIDBI Mock Session Date confirmation to all Enrolled students.
Once final, we will check our schedule and give available slots accordingly, to other candidates 🙏
Once final, we will check our schedule and give available slots accordingly, to other candidates 🙏
Interview Library
We have sent IBPS and SIDBI Mock Session Date confirmation to all Enrolled students. Once final, we will check our schedule and give available slots accordingly, to other candidates 🙏
If any enrolled candidate hasn't received a confirmation text, kindly DM 🙏
Top 15 Most Important News/ Burning Topics for IBPS PO Interview
1️⃣ UNESCO – Diwali Added to Intangible Cultural Heritage List
Significance, cultural importance, and India’s global soft-power impact.
2️⃣ Mexico Imposes 50% Tariff on Indian Goods
Implications for India’s trade, exporters, and geopolitical context.
3️⃣ Goa Club Fire Incident
Public safety failures, regulatory gaps, and disaster-management concerns.
4️⃣ Amazon & Microsoft’s AI Investment Plans for India
Impact on digital economy, jobs, AI infrastructure, and India’s tech ecosystem.
5️⃣ IndiGo Crisis
Flight disruptions due to FDTL rules, crew shortage, operational mismanagement, and DGCA’s response.
6️⃣ Right to Disconnect Bill
Work–life balance, labour rights, feasibility in India, and global precedents.
7️⃣ Vande Mataram Controversy
Political and cultural debate, relevance to national identity, and constitutional perspective.
8️⃣ Sanchar Saathi App – Mandatory Phone Tracking Concerns
Purpose (anti-fraud), CEIR mechanism, and privacy/surveillance debate.
9️⃣ GDP New Base Year Revision
Why base years change, impact on growth measurement, and expected updates.
🔟 Putin’s Visit to India
Defence ties, energy cooperation, geopolitics, and India–Russia strategic relationship.
1️⃣1️⃣ Rupee Depreciation Beyond ₹90
Reasons, impact on imports/exports, RBI’s stance, and forex reserves.
1️⃣2️⃣ New Labour Codes (Effective 2025)
Major reforms, worker benefits, employer obligations, and formalisation impact.
1️⃣3️⃣ Article 240 – Chandigarh Administration Debate
Centre–UT powers, legislative implications, and federal structure.
1️⃣4️⃣ Gen-Z Protests
Social causes, unemployment, inequality, political participation.
1️⃣5️⃣ Bihar Elections
Political alliances, governance issues, developmental challenges, and national implications.
Source :- https://t.me/interview_lib
1️⃣ UNESCO – Diwali Added to Intangible Cultural Heritage List
Significance, cultural importance, and India’s global soft-power impact.
2️⃣ Mexico Imposes 50% Tariff on Indian Goods
Implications for India’s trade, exporters, and geopolitical context.
3️⃣ Goa Club Fire Incident
Public safety failures, regulatory gaps, and disaster-management concerns.
4️⃣ Amazon & Microsoft’s AI Investment Plans for India
Impact on digital economy, jobs, AI infrastructure, and India’s tech ecosystem.
5️⃣ IndiGo Crisis
Flight disruptions due to FDTL rules, crew shortage, operational mismanagement, and DGCA’s response.
6️⃣ Right to Disconnect Bill
Work–life balance, labour rights, feasibility in India, and global precedents.
7️⃣ Vande Mataram Controversy
Political and cultural debate, relevance to national identity, and constitutional perspective.
8️⃣ Sanchar Saathi App – Mandatory Phone Tracking Concerns
Purpose (anti-fraud), CEIR mechanism, and privacy/surveillance debate.
9️⃣ GDP New Base Year Revision
Why base years change, impact on growth measurement, and expected updates.
🔟 Putin’s Visit to India
Defence ties, energy cooperation, geopolitics, and India–Russia strategic relationship.
1️⃣1️⃣ Rupee Depreciation Beyond ₹90
Reasons, impact on imports/exports, RBI’s stance, and forex reserves.
1️⃣2️⃣ New Labour Codes (Effective 2025)
Major reforms, worker benefits, employer obligations, and formalisation impact.
1️⃣3️⃣ Article 240 – Chandigarh Administration Debate
Centre–UT powers, legislative implications, and federal structure.
1️⃣4️⃣ Gen-Z Protests
Social causes, unemployment, inequality, political participation.
1️⃣5️⃣ Bihar Elections
Political alliances, governance issues, developmental challenges, and national implications.
Source :- https://t.me/interview_lib
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