Funding issues for SMEs

Funding is one of the key ailments in regards to Small and Medium Enterprises (SME). There are many reasons behind the SME sector in India facing Funding problems like – Informality, Lack of a financial plan, absence of collateral, lack of stability, low credibility etc. and because of these, the Banks get demoralized in providing them loans. The absence of growth in SME sectors in India is the organisations incapacity to approach proper funding due to unproductive and insufficient financial services. Funding issues therefore persists which carves a direct impact on the nation’s economic strength.