Andhera Season 1 OTT Release: A historic change is taking place in India’s MSME sector. Where earlier it used to take months for banks to disburse small loans, now the same process is being completed in just 15-20 minutes with the help of machine learning and digital tools. Assessment based on cash flow instead of the balance sheet is the biggest strength of this change. IDBI Bank Executive Director Nagaraj Garla presented a picture of this revolutionary change at the ET Make in India SME Regional Summit held in Nagpur.
A gap of three crores and the expectations of 6.6 million entrepreneurs
India’s more than 6.6 million MSMEs were facing a loan gap of about Rs 30 lakh crore for a long time. But digital loan processes have started bridging this gap rapidly. According to Garla, today, when countries like Bangladesh open their markets, Indian mills can raise working capital in hours instead of weeks. IDBI’s digital team processes loan applications of ₹1-5 crore in 20 minutes, while larger loans are sanctioned within a day.
The dawn of a collateral-free era
The most significant change in MSME financing is the elimination of the collateral requirement. Under the Credit Guarantee Trust of India (CGTMSE), exporters now get coverage of up to ₹20 crore, up from just ₹1 crore earlier. Under the new mutual guarantee scheme, heavy engineering MSMEs can avail loans up to ₹100 crore without any collateral, that too at just a 5% premium.
Exports jump threefold
India’s MSME exports have grown from ₹4 lakh crore to ₹12 lakh crore in the last four years. Speed is crucial, especially in the textiles sector, where global buyers have very tight delivery deadlines. For MSMEs in Nagpur and the Vidarbha region, the opportunity is even bigger, provided they invest in digital looms, CAD technology, and sustainable textiles.
Andhera sab dekh raha hai, aap Andhera kab dekh rahe ho 👀#AndheraOnPrime, Watch Now: https://t.co/Sr4t3w32VB@bapat_priya @Karanvirm1 @iamMostlySane @SurveenChawla @PachauriPranay @shethvatsal @parvindabas @RaaghavDar #GauravDesai @ritesh_sid @FarOutAkhtar @J10kassim… pic.twitter.com/js3n4xgPid
— prime video IN (@PrimeVideoIN) August 13, 2025
IDBI’s innovative finance model
IDBI is not just limited to traditional lending. Sector-specific funds like the Maharashtra Defence and Aerospace Venture Fund are promoting India’s self-reliance in strategic sectors by taking equity stakes in import substitution companies. This dual approach—debt and equity—meets the entire financing need of MSMEs in capital-intensive sectors like heavy engineering.
Cash flow management: The biggest challenge
Despite better financing being available, cash flow management is the biggest headache for Indian MSMEs. Many businesses get stuck investing short-term funds in long-term investments. Match the duration of finance to the investment need, retain employees, and prioritise personal financial diversification, Garla advised.
Nagpur’s regional advantage
Nagpur has a natural edge as a logistics hub due to its excellent connectivity. The presence of large textile manufacturers like Raymond and Trident has created a strong network of engineering, food processing, and ancillary industries here. For seasonal businesses, IDBI offers repayment models that allow payment only after the harvest season.
Way to growth through IPO
Garla said that entering the public market through the BSE SME IPO is a big way to grow. Many MSMEs have given more than 100% returns in the last five years, yet they are privately owned. Even by diluting only 5% equity, massive capital and brand value can be achieved.
Future direction
The shift from collateral-based lending to cash flow-based digital financing to make a place in India’s ‘China Plus One’ strategy can become the basis for industrial development. Now it remains to be seen how entrepreneurs in Nagpur and across the country are able to take advantage of the opportunities of this new financial ecosystem.