Operational Challenges and Solutions
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Small and Medium Enterprises in India — Certificate Course on MSME.
One-liners from this chapter
Free sample — 8 of 66 rapid-fire Q&A cards.
Up to what amount does CGTMSE provide collateral-free credit cover for MSMEs?
CGTMSE provides credit cover up to Rs.10 crore. Additionally, RBI mandates collateral-free loans up to Rs.20 lakh.
What percentage of MSMEs cite skilled-labour shortage as a material operational risk according to an NSDC survey?
Around 60% of MSMEs cite skilled-labour shortage as a material operational risk.
What is the PSB Loans in 59 Minutes portal used for?
It is used to address long loan processing times by enabling MSMEs with thin credit files to obtain faster loan approvals using cash-flow-based lending.
What is the formal credit gap estimated for the MSME sector according to policy think-tank assessments?
The formal credit gap for MSMEs is estimated at upwards of ₹20–25 lakh crore.
Which platform makes delayed payment recovery easier for MSMEs selling to large buyers?
TReDS (Trade Receivables Discounting System) platform enables MSMEs to discount their receivables. It is mandatory for buyers with a turnover exceeding Rs.250 crore.
What effective interest rate do informal lenders charge MSMEs cut off from formal credit?
Informal lenders charge MSMEs 30–60% effective interest.
What is the Account Aggregator framework used for in MSME lending?
The Account Aggregator framework enables cash-flow-based lending for MSMEs that lack a formal credit history (thin file borrowers).
Under the MSMED Act 2006, within how many days must buyers make payment to MSMEs if there is no written agreement?
15 days if there is no written agreement.
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