Deprecated (16384): The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 73
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php. [CORE/src/Core/functions.php, line 311]
Code Context


        trigger_error($message, E_USER_DEPRECATED);

    }
$message = 'The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 73
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php.'
$stackFrame = (int) 1
$trace = [
	(int) 0 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/ServerRequest.php',
		'line' => (int) 2421,
		'function' => 'deprecationWarning',
		'args' => [
			(int) 0 => 'The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead.'
		]
	],
	(int) 1 => [
		'file' => '/home/brlfuser/public_html/src/Controller/ArtileDetailController.php',
		'line' => (int) 73,
		'function' => 'offsetGet',
		'class' => 'Cake\Http\ServerRequest',
		'object' => object(Cake\Http\ServerRequest) {},
		'type' => '->',
		'args' => [
			(int) 0 => 'catslug'
		]
	],
	(int) 2 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Controller/Controller.php',
		'line' => (int) 610,
		'function' => 'printArticle',
		'class' => 'App\Controller\ArtileDetailController',
		'object' => object(App\Controller\ArtileDetailController) {},
		'type' => '->',
		'args' => []
	],
	(int) 3 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/ActionDispatcher.php',
		'line' => (int) 120,
		'function' => 'invokeAction',
		'class' => 'Cake\Controller\Controller',
		'object' => object(App\Controller\ArtileDetailController) {},
		'type' => '->',
		'args' => []
	],
	(int) 4 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/ActionDispatcher.php',
		'line' => (int) 94,
		'function' => '_invoke',
		'class' => 'Cake\Http\ActionDispatcher',
		'object' => object(Cake\Http\ActionDispatcher) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(App\Controller\ArtileDetailController) {}
		]
	],
	(int) 5 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/BaseApplication.php',
		'line' => (int) 235,
		'function' => 'dispatch',
		'class' => 'Cake\Http\ActionDispatcher',
		'object' => object(Cake\Http\ActionDispatcher) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {}
		]
	],
	(int) 6 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/Runner.php',
		'line' => (int) 65,
		'function' => '__invoke',
		'class' => 'Cake\Http\BaseApplication',
		'object' => object(App\Application) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {},
			(int) 2 => object(Cake\Http\Runner) {}
		]
	],
	(int) 7 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Routing/Middleware/RoutingMiddleware.php',
		'line' => (int) 162,
		'function' => '__invoke',
		'class' => 'Cake\Http\Runner',
		'object' => object(Cake\Http\Runner) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {}
		]
	],
	(int) 8 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/Runner.php',
		'line' => (int) 65,
		'function' => '__invoke',
		'class' => 'Cake\Routing\Middleware\RoutingMiddleware',
		'object' => object(Cake\Routing\Middleware\RoutingMiddleware) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {},
			(int) 2 => object(Cake\Http\Runner) {}
		]
	],
	(int) 9 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Routing/Middleware/AssetMiddleware.php',
		'line' => (int) 88,
		'function' => '__invoke',
		'class' => 'Cake\Http\Runner',
		'object' => object(Cake\Http\Runner) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {}
		]
	],
	(int) 10 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/Runner.php',
		'line' => (int) 65,
		'function' => '__invoke',
		'class' => 'Cake\Routing\Middleware\AssetMiddleware',
		'object' => object(Cake\Routing\Middleware\AssetMiddleware) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {},
			(int) 2 => object(Cake\Http\Runner) {}
		]
	],
	(int) 11 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Middleware/ErrorHandlerMiddleware.php',
		'line' => (int) 96,
		'function' => '__invoke',
		'class' => 'Cake\Http\Runner',
		'object' => object(Cake\Http\Runner) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {}
		]
	],
	(int) 12 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/Runner.php',
		'line' => (int) 65,
		'function' => '__invoke',
		'class' => 'Cake\Error\Middleware\ErrorHandlerMiddleware',
		'object' => object(Cake\Error\Middleware\ErrorHandlerMiddleware) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {},
			(int) 2 => object(Cake\Http\Runner) {}
		]
	],
	(int) 13 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/Runner.php',
		'line' => (int) 51,
		'function' => '__invoke',
		'class' => 'Cake\Http\Runner',
		'object' => object(Cake\Http\Runner) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {}
		]
	],
	(int) 14 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/Server.php',
		'line' => (int) 98,
		'function' => 'run',
		'class' => 'Cake\Http\Runner',
		'object' => object(Cake\Http\Runner) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\MiddlewareQueue) {},
			(int) 1 => object(Cake\Http\ServerRequest) {},
			(int) 2 => object(Cake\Http\Response) {}
		]
	],
	(int) 15 => [
		'file' => '/home/brlfuser/public_html/webroot/index.php',
		'line' => (int) 39,
		'function' => 'run',
		'class' => 'Cake\Http\Server',
		'object' => object(Cake\Http\Server) {},
		'type' => '->',
		'args' => []
	]
]
$frame = [
	'file' => '/home/brlfuser/public_html/src/Controller/ArtileDetailController.php',
	'line' => (int) 73,
	'function' => 'offsetGet',
	'class' => 'Cake\Http\ServerRequest',
	'object' => object(Cake\Http\ServerRequest) {
		trustProxy => false
		[protected] params => [
			[maximum depth reached]
		]
		[protected] data => [[maximum depth reached]]
		[protected] query => [[maximum depth reached]]
		[protected] cookies => [
			[maximum depth reached]
		]
		[protected] _environment => [
			[maximum depth reached]
		]
		[protected] url => 'latest-news-updates/the-low-productivity-trap-of-collateralised-lending-for-msmes-harsh-vardhan/print'
		[protected] base => ''
		[protected] webroot => '/'
		[protected] here => '/latest-news-updates/the-low-productivity-trap-of-collateralised-lending-for-msmes-harsh-vardhan/print'
		[protected] trustedProxies => [[maximum depth reached]]
		[protected] _input => null
		[protected] _detectors => [
			[maximum depth reached]
		]
		[protected] _detectorCache => [
			[maximum depth reached]
		]
		[protected] stream => object(Zend\Diactoros\PhpInputStream) {}
		[protected] uri => object(Zend\Diactoros\Uri) {}
		[protected] session => object(Cake\Http\Session) {}
		[protected] attributes => [[maximum depth reached]]
		[protected] emulatedAttributes => [
			[maximum depth reached]
		]
		[protected] uploadedFiles => [[maximum depth reached]]
		[protected] protocol => null
		[protected] requestTarget => null
		[private] deprecatedProperties => [
			[maximum depth reached]
		]
	},
	'type' => '->',
	'args' => [
		(int) 0 => 'catslug'
	]
]
deprecationWarning - CORE/src/Core/functions.php, line 311
Cake\Http\ServerRequest::offsetGet() - CORE/src/Http/ServerRequest.php, line 2421
App\Controller\ArtileDetailController::printArticle() - APP/Controller/ArtileDetailController.php, line 73
Cake\Controller\Controller::invokeAction() - CORE/src/Controller/Controller.php, line 610
Cake\Http\ActionDispatcher::_invoke() - CORE/src/Http/ActionDispatcher.php, line 120
Cake\Http\ActionDispatcher::dispatch() - CORE/src/Http/ActionDispatcher.php, line 94
Cake\Http\BaseApplication::__invoke() - CORE/src/Http/BaseApplication.php, line 235
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\RoutingMiddleware::__invoke() - CORE/src/Routing/Middleware/RoutingMiddleware.php, line 162
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\AssetMiddleware::__invoke() - CORE/src/Routing/Middleware/AssetMiddleware.php, line 88
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Error\Middleware\ErrorHandlerMiddleware::__invoke() - CORE/src/Error/Middleware/ErrorHandlerMiddleware.php, line 96
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Http\Runner::run() - CORE/src/Http/Runner.php, line 51
Cake\Http\Server::run() - CORE/src/Http/Server.php, line 98

Deprecated (16384): The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 74
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php. [CORE/src/Core/functions.php, line 311]
Code Context


        trigger_error($message, E_USER_DEPRECATED);

    }
$message = 'The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 74
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php.'
$stackFrame = (int) 1
$trace = [
	(int) 0 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/ServerRequest.php',
		'line' => (int) 2421,
		'function' => 'deprecationWarning',
		'args' => [
			(int) 0 => 'The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead.'
		]
	],
	(int) 1 => [
		'file' => '/home/brlfuser/public_html/src/Controller/ArtileDetailController.php',
		'line' => (int) 74,
		'function' => 'offsetGet',
		'class' => 'Cake\Http\ServerRequest',
		'object' => object(Cake\Http\ServerRequest) {},
		'type' => '->',
		'args' => [
			(int) 0 => 'artileslug'
		]
	],
	(int) 2 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Controller/Controller.php',
		'line' => (int) 610,
		'function' => 'printArticle',
		'class' => 'App\Controller\ArtileDetailController',
		'object' => object(App\Controller\ArtileDetailController) {},
		'type' => '->',
		'args' => []
	],
	(int) 3 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/ActionDispatcher.php',
		'line' => (int) 120,
		'function' => 'invokeAction',
		'class' => 'Cake\Controller\Controller',
		'object' => object(App\Controller\ArtileDetailController) {},
		'type' => '->',
		'args' => []
	],
	(int) 4 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/ActionDispatcher.php',
		'line' => (int) 94,
		'function' => '_invoke',
		'class' => 'Cake\Http\ActionDispatcher',
		'object' => object(Cake\Http\ActionDispatcher) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(App\Controller\ArtileDetailController) {}
		]
	],
	(int) 5 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/BaseApplication.php',
		'line' => (int) 235,
		'function' => 'dispatch',
		'class' => 'Cake\Http\ActionDispatcher',
		'object' => object(Cake\Http\ActionDispatcher) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {}
		]
	],
	(int) 6 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/Runner.php',
		'line' => (int) 65,
		'function' => '__invoke',
		'class' => 'Cake\Http\BaseApplication',
		'object' => object(App\Application) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {},
			(int) 2 => object(Cake\Http\Runner) {}
		]
	],
	(int) 7 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Routing/Middleware/RoutingMiddleware.php',
		'line' => (int) 162,
		'function' => '__invoke',
		'class' => 'Cake\Http\Runner',
		'object' => object(Cake\Http\Runner) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {}
		]
	],
	(int) 8 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/Runner.php',
		'line' => (int) 65,
		'function' => '__invoke',
		'class' => 'Cake\Routing\Middleware\RoutingMiddleware',
		'object' => object(Cake\Routing\Middleware\RoutingMiddleware) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {},
			(int) 2 => object(Cake\Http\Runner) {}
		]
	],
	(int) 9 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Routing/Middleware/AssetMiddleware.php',
		'line' => (int) 88,
		'function' => '__invoke',
		'class' => 'Cake\Http\Runner',
		'object' => object(Cake\Http\Runner) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {}
		]
	],
	(int) 10 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/Runner.php',
		'line' => (int) 65,
		'function' => '__invoke',
		'class' => 'Cake\Routing\Middleware\AssetMiddleware',
		'object' => object(Cake\Routing\Middleware\AssetMiddleware) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {},
			(int) 2 => object(Cake\Http\Runner) {}
		]
	],
	(int) 11 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Middleware/ErrorHandlerMiddleware.php',
		'line' => (int) 96,
		'function' => '__invoke',
		'class' => 'Cake\Http\Runner',
		'object' => object(Cake\Http\Runner) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {}
		]
	],
	(int) 12 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/Runner.php',
		'line' => (int) 65,
		'function' => '__invoke',
		'class' => 'Cake\Error\Middleware\ErrorHandlerMiddleware',
		'object' => object(Cake\Error\Middleware\ErrorHandlerMiddleware) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {},
			(int) 2 => object(Cake\Http\Runner) {}
		]
	],
	(int) 13 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/Runner.php',
		'line' => (int) 51,
		'function' => '__invoke',
		'class' => 'Cake\Http\Runner',
		'object' => object(Cake\Http\Runner) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {}
		]
	],
	(int) 14 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/Server.php',
		'line' => (int) 98,
		'function' => 'run',
		'class' => 'Cake\Http\Runner',
		'object' => object(Cake\Http\Runner) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\MiddlewareQueue) {},
			(int) 1 => object(Cake\Http\ServerRequest) {},
			(int) 2 => object(Cake\Http\Response) {}
		]
	],
	(int) 15 => [
		'file' => '/home/brlfuser/public_html/webroot/index.php',
		'line' => (int) 39,
		'function' => 'run',
		'class' => 'Cake\Http\Server',
		'object' => object(Cake\Http\Server) {},
		'type' => '->',
		'args' => []
	]
]
$frame = [
	'file' => '/home/brlfuser/public_html/src/Controller/ArtileDetailController.php',
	'line' => (int) 74,
	'function' => 'offsetGet',
	'class' => 'Cake\Http\ServerRequest',
	'object' => object(Cake\Http\ServerRequest) {
		trustProxy => false
		[protected] params => [
			[maximum depth reached]
		]
		[protected] data => [[maximum depth reached]]
		[protected] query => [[maximum depth reached]]
		[protected] cookies => [
			[maximum depth reached]
		]
		[protected] _environment => [
			[maximum depth reached]
		]
		[protected] url => 'latest-news-updates/the-low-productivity-trap-of-collateralised-lending-for-msmes-harsh-vardhan/print'
		[protected] base => ''
		[protected] webroot => '/'
		[protected] here => '/latest-news-updates/the-low-productivity-trap-of-collateralised-lending-for-msmes-harsh-vardhan/print'
		[protected] trustedProxies => [[maximum depth reached]]
		[protected] _input => null
		[protected] _detectors => [
			[maximum depth reached]
		]
		[protected] _detectorCache => [
			[maximum depth reached]
		]
		[protected] stream => object(Zend\Diactoros\PhpInputStream) {}
		[protected] uri => object(Zend\Diactoros\Uri) {}
		[protected] session => object(Cake\Http\Session) {}
		[protected] attributes => [[maximum depth reached]]
		[protected] emulatedAttributes => [
			[maximum depth reached]
		]
		[protected] uploadedFiles => [[maximum depth reached]]
		[protected] protocol => null
		[protected] requestTarget => null
		[private] deprecatedProperties => [
			[maximum depth reached]
		]
	},
	'type' => '->',
	'args' => [
		(int) 0 => 'artileslug'
	]
]
deprecationWarning - CORE/src/Core/functions.php, line 311
Cake\Http\ServerRequest::offsetGet() - CORE/src/Http/ServerRequest.php, line 2421
App\Controller\ArtileDetailController::printArticle() - APP/Controller/ArtileDetailController.php, line 74
Cake\Controller\Controller::invokeAction() - CORE/src/Controller/Controller.php, line 610
Cake\Http\ActionDispatcher::_invoke() - CORE/src/Http/ActionDispatcher.php, line 120
Cake\Http\ActionDispatcher::dispatch() - CORE/src/Http/ActionDispatcher.php, line 94
Cake\Http\BaseApplication::__invoke() - CORE/src/Http/BaseApplication.php, line 235
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\RoutingMiddleware::__invoke() - CORE/src/Routing/Middleware/RoutingMiddleware.php, line 162
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\AssetMiddleware::__invoke() - CORE/src/Routing/Middleware/AssetMiddleware.php, line 88
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Error\Middleware\ErrorHandlerMiddleware::__invoke() - CORE/src/Error/Middleware/ErrorHandlerMiddleware.php, line 96
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Http\Runner::run() - CORE/src/Http/Runner.php, line 51
Cake\Http\Server::run() - CORE/src/Http/Server.php, line 98

Warning (512): Unable to emit headers. Headers sent in file=/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Debugger.php line=853 [CORE/src/Http/ResponseEmitter.php, line 48]
Code Context
            if (Configure::read('debug')) {

                trigger_error($message, E_USER_WARNING);

            } else {
$response = object(Cake\Http\Response) {

	'status' => (int) 200,
	'contentType' => 'text/html',
	'headers' => [
		'Content-Type' => [
			[maximum depth reached]
		]
	],
	'file' => null,
	'fileRange' => [],
	'cookies' => object(Cake\Http\Cookie\CookieCollection) {},
	'cacheDirectives' => [],
	'body' => '<!DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN"
        "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd">
<html xmlns="http://www.w3.org/1999/xhtml">
<head>
    <link rel="canonical" href="https://im4change.in/<pre class="cake-error"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr67f05e82502c3-trace').style.display = (document.getElementById('cakeErr67f05e82502c3-trace').style.display == 'none' ? '' : 'none');"><b>Notice</b> (8)</a>: Undefined variable: urlPrefix [<b>APP/Template/Layout/printlayout.ctp</b>, line <b>8</b>]<div id="cakeErr67f05e82502c3-trace" class="cake-stack-trace" style="display: none;"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr67f05e82502c3-code').style.display = (document.getElementById('cakeErr67f05e82502c3-code').style.display == 'none' ? '' : 'none')">Code</a> <a href="javascript:void(0);" onclick="document.getElementById('cakeErr67f05e82502c3-context').style.display = (document.getElementById('cakeErr67f05e82502c3-context').style.display == 'none' ? '' : 'none')">Context</a><pre id="cakeErr67f05e82502c3-code" class="cake-code-dump" style="display: none;"><code><span style="color: #000000"><span style="color: #0000BB"></span><span style="color: #007700">&lt;</span><span style="color: #0000BB">head</span><span style="color: #007700">&gt;
</span></span></code>
<span class="code-highlight"><code><span style="color: #000000">&nbsp;&nbsp;&nbsp;&nbsp;&lt;link&nbsp;rel="canonical"&nbsp;href="<span style="color: #0000BB">&lt;?php&nbsp;</span><span style="color: #007700">echo&nbsp;</span><span style="color: #0000BB">Configure</span><span style="color: #007700">::</span><span style="color: #0000BB">read</span><span style="color: #007700">(</span><span style="color: #DD0000">'SITE_URL'</span><span style="color: #007700">);&nbsp;</span><span style="color: #0000BB">?&gt;&lt;?php&nbsp;</span><span style="color: #007700">echo&nbsp;</span><span style="color: #0000BB">$urlPrefix</span><span style="color: #007700">;</span><span style="color: #0000BB">?&gt;&lt;?php&nbsp;</span><span style="color: #007700">echo&nbsp;</span><span style="color: #0000BB">$article_current</span><span style="color: #007700">-&gt;</span><span style="color: #0000BB">category</span><span style="color: #007700">-&gt;</span><span style="color: #0000BB">slug</span><span style="color: #007700">;&nbsp;</span><span style="color: #0000BB">?&gt;</span>/<span style="color: #0000BB">&lt;?php&nbsp;</span><span style="color: #007700">echo&nbsp;</span><span style="color: #0000BB">$article_current</span><span style="color: #007700">-&gt;</span><span style="color: #0000BB">seo_url</span><span style="color: #007700">;&nbsp;</span><span style="color: #0000BB">?&gt;</span>.html"/&gt;
</span></code></span>
<code><span style="color: #000000"><span style="color: #0000BB">&nbsp;&nbsp;&nbsp;&nbsp;</span><span style="color: #007700">&lt;</span><span style="color: #0000BB">meta&nbsp;http</span><span style="color: #007700">-</span><span style="color: #0000BB">equiv</span><span style="color: #007700">=</span><span style="color: #DD0000">"Content-Type"&nbsp;</span><span style="color: #0000BB">content</span><span style="color: #007700">=</span><span style="color: #DD0000">"text/html;&nbsp;charset=utf-8"</span><span style="color: #007700">/&gt;
</span></span></code></pre><pre id="cakeErr67f05e82502c3-context" class="cake-context" style="display: none;">$viewFile = &#039;/home/brlfuser/public_html/src/Template/Layout/printlayout.ctp&#039;
$dataForView = [
	&#039;article_current&#039; =&gt; object(App\Model\Entity\Article) {

		&#039;id&#039; =&gt; (int) 63979,
		&#039;title&#039; =&gt; &#039;The low productivity trap of collateralised lending for MSMEs -Harsh Vardhan&#039;,
		&#039;subheading&#039; =&gt; null,
		&#039;description&#039; =&gt; &#039;&lt;p style=&quot;text-align:justify&quot;&gt;-Ideas for India&lt;/p&gt;

&lt;p style=&quot;text-align:justify&quot;&gt;&lt;em&gt;The share of bank credit extended to MSMEs increased dramatically during the pandemic. In this post, Harsh Vardhan discusses the the government guarantee of bank loans as a possible driver of this growth. He outlines the current policy of providing credit against collateral, and the constraints MSMEs face while borrowing&amp;ndash; which leads to decreased investment and firm productivity. He argues that the learnings from the credit guarantee scheme could be used to design a permanent guarantee scheme for MSME credit.&lt;/em&gt;&lt;/p&gt;

&lt;p style=&quot;text-align:justify&quot;&gt;Micro, small, and medium enterprises (MSMEs) are an important part of the Indian economy. Roughly between 6 and 8 million in number, they are estimated to account for around 30% of GDP and employ more than 100 million. Despite this significant role in the economy, they have been chronically credit starved. Issues of flow of credit to MSMEs has been extensively discussed for a long time and it is fair to say that it remains a policy challenge.&lt;/p&gt;

&lt;p style=&quot;text-align:justify&quot;&gt;During the Covid-19 pandemic, MSMEs experienced a dramatic growth in credit from the banking sector. Bank credit to MSMEs, which had remained stagnant for almost five years from 2015 onwards, grew by 15% in FY2020-21, and by another 31% in FY2021-22. It is important to keep in mind that the overall bank credit growth in these two years was around 8%. Figure 1 gives details of the annual growth in bank credit to MSMEs, and the share of MSME credit in total bank credit. The share of MSMEs in bank credit, which was stable at around 8.5% for the first half of the last decade, reduced by nearly half to 4.8% by FY 2019-20. To put this in perspective, the share of (unsecured) personal loans given by the banking system in 2020 was 8% of total loans.&lt;/p&gt;

&lt;p style=&quot;text-align:justify&quot;&gt;Please &lt;a href=&quot;https://www.ideasforindia.in/topics/money-finance/the-low-productivity-trap-of-collateralised-lending-for-msmes.html&quot;&gt;click here&lt;/a&gt; to read more.&amp;nbsp;&lt;/p&gt;
&#039;,
		&#039;credit_writer&#039; =&gt; &#039;Ideas for India, 7 October, 2022, https://www.ideasforindia.in/topics/money-finance/the-low-productivity-trap-of-collateralised-lending-for-msmes.html&#039;,
		&#039;article_img&#039; =&gt; &#039;&#039;,
		&#039;article_img_thumb&#039; =&gt; &#039;&#039;,
		&#039;status&#039; =&gt; (int) 1,
		&#039;show_on_home&#039; =&gt; (int) 1,
		&#039;lang&#039; =&gt; &#039;EN&#039;,
		&#039;category_id&#039; =&gt; (int) 16,
		&#039;tag_keyword&#039; =&gt; &#039;&#039;,
		&#039;seo_url&#039; =&gt; &#039;the-low-productivity-trap-of-collateralised-lending-for-msmes-harsh-vardhan&#039;,
		&#039;meta_title&#039; =&gt; &#039;&#039;,
		&#039;meta_keywords&#039; =&gt; &#039;&#039;,
		&#039;meta_description&#039; =&gt; &#039;&#039;,
		&#039;noindex&#039; =&gt; (int) 1,
		&#039;publish_date&#039; =&gt; object(Cake\I18n\FrozenDate) {},
		&#039;most_visit_section_id&#039; =&gt; null,
		&#039;article_big_img&#039; =&gt; null,
		&#039;liveid&#039; =&gt; null,
		&#039;created&#039; =&gt; object(Cake\I18n\FrozenTime) {},
		&#039;modified&#039; =&gt; object(Cake\I18n\FrozenTime) {},
		&#039;edate&#039; =&gt; &#039;&#039;,
		&#039;tags&#039; =&gt; [
			[maximum depth reached]
		],
		&#039;category&#039; =&gt; object(App\Model\Entity\Category) {},
		&#039;[new]&#039; =&gt; false,
		&#039;[accessible]&#039; =&gt; [
			[maximum depth reached]
		],
		&#039;[dirty]&#039; =&gt; [[maximum depth reached]],
		&#039;[original]&#039; =&gt; [[maximum depth reached]],
		&#039;[virtual]&#039; =&gt; [[maximum depth reached]],
		&#039;[hasErrors]&#039; =&gt; false,
		&#039;[errors]&#039; =&gt; [[maximum depth reached]],
		&#039;[invalid]&#039; =&gt; [[maximum depth reached]],
		&#039;[repository]&#039; =&gt; &#039;Articles&#039;
	
	},
	&#039;articleid&#039; =&gt; (int) 63979,
	&#039;metaTitle&#039; =&gt; &#039;LATEST NEWS UPDATES | The low productivity trap of collateralised lending for MSMEs -Harsh Vardhan&#039;,
	&#039;metaKeywords&#039; =&gt; &#039;Micro Small and Medium Enterprises,MSMEs,credit guarantee scheme,permanent guarantee scheme,collateralised credit,bank credit,bank loans&#039;,
	&#039;metaDesc&#039; =&gt; &#039;-Ideas for India

The share of bank credit extended to MSMEs increased dramatically during the pandemic. In this post, Harsh Vardhan discusses the the government guarantee of bank loans as a possible driver of this growth. He outlines the current policy...&#039;,
	&#039;disp&#039; =&gt; &#039;&lt;p style=&quot;text-align:justify&quot;&gt;-Ideas for India&lt;/p&gt;&lt;p style=&quot;text-align:justify&quot;&gt;&lt;em&gt;The share of bank credit extended to MSMEs increased dramatically during the pandemic. In this post, Harsh Vardhan discusses the the government guarantee of bank loans as a possible driver of this growth. He outlines the current policy of providing credit against collateral, and the constraints MSMEs face while borrowing&amp;ndash; which leads to decreased investment and firm productivity. He argues that the learnings from the credit guarantee scheme could be used to design a permanent guarantee scheme for MSME credit.&lt;/em&gt;&lt;/p&gt;&lt;p style=&quot;text-align:justify&quot;&gt;Micro, small, and medium enterprises (MSMEs) are an important part of the Indian economy. Roughly between 6 and 8 million in number, they are estimated to account for around 30% of GDP and employ more than 100 million. Despite this significant role in the economy, they have been chronically credit starved. Issues of flow of credit to MSMEs has been extensively discussed for a long time and it is fair to say that it remains a policy challenge.&lt;/p&gt;&lt;p style=&quot;text-align:justify&quot;&gt;During the Covid-19 pandemic, MSMEs experienced a dramatic growth in credit from the banking sector. Bank credit to MSMEs, which had remained stagnant for almost five years from 2015 onwards, grew by 15% in FY2020-21, and by another 31% in FY2021-22. It is important to keep in mind that the overall bank credit growth in these two years was around 8%. Figure 1 gives details of the annual growth in bank credit to MSMEs, and the share of MSME credit in total bank credit. The share of MSMEs in bank credit, which was stable at around 8.5% for the first half of the last decade, reduced by nearly half to 4.8% by FY 2019-20. To put this in perspective, the share of (unsecured) personal loans given by the banking system in 2020 was 8% of total loans.&lt;/p&gt;&lt;p style=&quot;text-align:justify&quot;&gt;Please &lt;a href=&quot;https://www.ideasforindia.in/topics/money-finance/the-low-productivity-trap-of-collateralised-lending-for-msmes.html&quot; title=&quot;https://www.ideasforindia.in/topics/money-finance/the-low-productivity-trap-of-collateralised-lending-for-msmes.html&quot;&gt;click here&lt;/a&gt; to read more.&amp;nbsp;&lt;/p&gt;&#039;,
	&#039;lang&#039; =&gt; &#039;English&#039;,
	&#039;SITE_URL&#039; =&gt; &#039;https://im4change.in/&#039;,
	&#039;site_title&#039; =&gt; &#039;im4change&#039;,
	&#039;adminprix&#039; =&gt; &#039;admin&#039;
]
$article_current = object(App\Model\Entity\Article) {

	&#039;id&#039; =&gt; (int) 63979,
	&#039;title&#039; =&gt; &#039;The low productivity trap of collateralised lending for MSMEs -Harsh Vardhan&#039;,
	&#039;subheading&#039; =&gt; null,
	&#039;description&#039; =&gt; &#039;&lt;p style=&quot;text-align:justify&quot;&gt;-Ideas for India&lt;/p&gt;

&lt;p style=&quot;text-align:justify&quot;&gt;&lt;em&gt;The share of bank credit extended to MSMEs increased dramatically during the pandemic. In this post, Harsh Vardhan discusses the the government guarantee of bank loans as a possible driver of this growth. He outlines the current policy of providing credit against collateral, and the constraints MSMEs face while borrowing&amp;ndash; which leads to decreased investment and firm productivity. He argues that the learnings from the credit guarantee scheme could be used to design a permanent guarantee scheme for MSME credit.&lt;/em&gt;&lt;/p&gt;

&lt;p style=&quot;text-align:justify&quot;&gt;Micro, small, and medium enterprises (MSMEs) are an important part of the Indian economy. Roughly between 6 and 8 million in number, they are estimated to account for around 30% of GDP and employ more than 100 million. Despite this significant role in the economy, they have been chronically credit starved. Issues of flow of credit to MSMEs has been extensively discussed for a long time and it is fair to say that it remains a policy challenge.&lt;/p&gt;

&lt;p style=&quot;text-align:justify&quot;&gt;During the Covid-19 pandemic, MSMEs experienced a dramatic growth in credit from the banking sector. Bank credit to MSMEs, which had remained stagnant for almost five years from 2015 onwards, grew by 15% in FY2020-21, and by another 31% in FY2021-22. It is important to keep in mind that the overall bank credit growth in these two years was around 8%. Figure 1 gives details of the annual growth in bank credit to MSMEs, and the share of MSME credit in total bank credit. The share of MSMEs in bank credit, which was stable at around 8.5% for the first half of the last decade, reduced by nearly half to 4.8% by FY 2019-20. To put this in perspective, the share of (unsecured) personal loans given by the banking system in 2020 was 8% of total loans.&lt;/p&gt;

&lt;p style=&quot;text-align:justify&quot;&gt;Please &lt;a href=&quot;https://www.ideasforindia.in/topics/money-finance/the-low-productivity-trap-of-collateralised-lending-for-msmes.html&quot;&gt;click here&lt;/a&gt; to read more.&amp;nbsp;&lt;/p&gt;
&#039;,
	&#039;credit_writer&#039; =&gt; &#039;Ideas for India, 7 October, 2022, https://www.ideasforindia.in/topics/money-finance/the-low-productivity-trap-of-collateralised-lending-for-msmes.html&#039;,
	&#039;article_img&#039; =&gt; &#039;&#039;,
	&#039;article_img_thumb&#039; =&gt; &#039;&#039;,
	&#039;status&#039; =&gt; (int) 1,
	&#039;show_on_home&#039; =&gt; (int) 1,
	&#039;lang&#039; =&gt; &#039;EN&#039;,
	&#039;category_id&#039; =&gt; (int) 16,
	&#039;tag_keyword&#039; =&gt; &#039;&#039;,
	&#039;seo_url&#039; =&gt; &#039;the-low-productivity-trap-of-collateralised-lending-for-msmes-harsh-vardhan&#039;,
	&#039;meta_title&#039; =&gt; &#039;&#039;,
	&#039;meta_keywords&#039; =&gt; &#039;&#039;,
	&#039;meta_description&#039; =&gt; &#039;&#039;,
	&#039;noindex&#039; =&gt; (int) 1,
	&#039;publish_date&#039; =&gt; object(Cake\I18n\FrozenDate) {},
	&#039;most_visit_section_id&#039; =&gt; null,
	&#039;article_big_img&#039; =&gt; null,
	&#039;liveid&#039; =&gt; null,
	&#039;created&#039; =&gt; object(Cake\I18n\FrozenTime) {},
	&#039;modified&#039; =&gt; object(Cake\I18n\FrozenTime) {},
	&#039;edate&#039; =&gt; &#039;&#039;,
	&#039;tags&#039; =&gt; [
		(int) 0 =&gt; object(Cake\ORM\Entity) {},
		(int) 1 =&gt; object(Cake\ORM\Entity) {},
		(int) 2 =&gt; object(Cake\ORM\Entity) {},
		(int) 3 =&gt; object(Cake\ORM\Entity) {},
		(int) 4 =&gt; object(Cake\ORM\Entity) {},
		(int) 5 =&gt; object(Cake\ORM\Entity) {},
		(int) 6 =&gt; object(Cake\ORM\Entity) {}
	],
	&#039;category&#039; =&gt; object(App\Model\Entity\Category) {},
	&#039;[new]&#039; =&gt; false,
	&#039;[accessible]&#039; =&gt; [
		&#039;*&#039; =&gt; true,
		&#039;id&#039; =&gt; false
	],
	&#039;[dirty]&#039; =&gt; [],
	&#039;[original]&#039; =&gt; [],
	&#039;[virtual]&#039; =&gt; [],
	&#039;[hasErrors]&#039; =&gt; false,
	&#039;[errors]&#039; =&gt; [],
	&#039;[invalid]&#039; =&gt; [],
	&#039;[repository]&#039; =&gt; &#039;Articles&#039;

}
$articleid = (int) 63979
$metaTitle = &#039;LATEST NEWS UPDATES | The low productivity trap of collateralised lending for MSMEs -Harsh Vardhan&#039;
$metaKeywords = &#039;Micro Small and Medium Enterprises,MSMEs,credit guarantee scheme,permanent guarantee scheme,collateralised credit,bank credit,bank loans&#039;
$metaDesc = &#039;-Ideas for India

The share of bank credit extended to MSMEs increased dramatically during the pandemic. In this post, Harsh Vardhan discusses the the government guarantee of bank loans as a possible driver of this growth. He outlines the current policy...&#039;
$disp = &#039;&lt;p style=&quot;text-align:justify&quot;&gt;-Ideas for India&lt;/p&gt;&lt;p style=&quot;text-align:justify&quot;&gt;&lt;em&gt;The share of bank credit extended to MSMEs increased dramatically during the pandemic. In this post, Harsh Vardhan discusses the the government guarantee of bank loans as a possible driver of this growth. He outlines the current policy of providing credit against collateral, and the constraints MSMEs face while borrowing&amp;ndash; which leads to decreased investment and firm productivity. He argues that the learnings from the credit guarantee scheme could be used to design a permanent guarantee scheme for MSME credit.&lt;/em&gt;&lt;/p&gt;&lt;p style=&quot;text-align:justify&quot;&gt;Micro, small, and medium enterprises (MSMEs) are an important part of the Indian economy. Roughly between 6 and 8 million in number, they are estimated to account for around 30% of GDP and employ more than 100 million. Despite this significant role in the economy, they have been chronically credit starved. Issues of flow of credit to MSMEs has been extensively discussed for a long time and it is fair to say that it remains a policy challenge.&lt;/p&gt;&lt;p style=&quot;text-align:justify&quot;&gt;During the Covid-19 pandemic, MSMEs experienced a dramatic growth in credit from the banking sector. Bank credit to MSMEs, which had remained stagnant for almost five years from 2015 onwards, grew by 15% in FY2020-21, and by another 31% in FY2021-22. It is important to keep in mind that the overall bank credit growth in these two years was around 8%. Figure 1 gives details of the annual growth in bank credit to MSMEs, and the share of MSME credit in total bank credit. The share of MSMEs in bank credit, which was stable at around 8.5% for the first half of the last decade, reduced by nearly half to 4.8% by FY 2019-20. To put this in perspective, the share of (unsecured) personal loans given by the banking system in 2020 was 8% of total loans.&lt;/p&gt;&lt;p style=&quot;text-align:justify&quot;&gt;Please &lt;a href=&quot;https://www.ideasforindia.in/topics/money-finance/the-low-productivity-trap-of-collateralised-lending-for-msmes.html&quot; title=&quot;https://www.ideasforindia.in/topics/money-finance/the-low-productivity-trap-of-collateralised-lending-for-msmes.html&quot;&gt;click here&lt;/a&gt; to read more.&amp;nbsp;&lt;/p&gt;&#039;
$lang = &#039;English&#039;
$SITE_URL = &#039;https://im4change.in/&#039;
$site_title = &#039;im4change&#039;
$adminprix = &#039;admin&#039;</pre><pre class="stack-trace">include - APP/Template/Layout/printlayout.ctp, line 8
Cake\View\View::_evaluate() - CORE/src/View/View.php, line 1413
Cake\View\View::_render() - CORE/src/View/View.php, line 1374
Cake\View\View::renderLayout() - CORE/src/View/View.php, line 927
Cake\View\View::render() - CORE/src/View/View.php, line 885
Cake\Controller\Controller::render() - CORE/src/Controller/Controller.php, line 791
Cake\Http\ActionDispatcher::_invoke() - CORE/src/Http/ActionDispatcher.php, line 126
Cake\Http\ActionDispatcher::dispatch() - CORE/src/Http/ActionDispatcher.php, line 94
Cake\Http\BaseApplication::__invoke() - CORE/src/Http/BaseApplication.php, line 235
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\RoutingMiddleware::__invoke() - CORE/src/Routing/Middleware/RoutingMiddleware.php, line 162
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\AssetMiddleware::__invoke() - CORE/src/Routing/Middleware/AssetMiddleware.php, line 88
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Error\Middleware\ErrorHandlerMiddleware::__invoke() - CORE/src/Error/Middleware/ErrorHandlerMiddleware.php, line 96
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Http\Runner::run() - CORE/src/Http/Runner.php, line 51</pre></div></pre>latest-news-updates/the-low-productivity-trap-of-collateralised-lending-for-msmes-harsh-vardhan.html"/>
    <meta http-equiv="Content-Type" content="text/html; charset=utf-8"/>
    <link href="https://im4change.in/css/control.css" rel="stylesheet" type="text/css"
          media="all"/>
    <title>LATEST NEWS UPDATES | The low productivity trap of collateralised lending for MSMEs -Harsh Vardhan | Im4change.org</title>
    <meta name="description" content="-Ideas for India

The share of bank credit extended to MSMEs increased dramatically during the pandemic. In this post, Harsh Vardhan discusses the the government guarantee of bank loans as a possible driver of this growth. He outlines the current policy..."/>
    <script src="https://im4change.in/js/jquery-1.10.2.js"></script>
    <script type="text/javascript" src="https://im4change.in/js/jquery-migrate.min.js"></script>
    <script language="javascript" type="text/javascript">

        $(document).ready(function () {
            var img = $("img")[0]; // Get my img elem
            var pic_real_width, pic_real_height;
            $("<img/>") // Make in memory copy of image to avoid css issues
                .attr("src", $(img).attr("src"))
                .load(function () {
                    pic_real_width = this.width;   // Note: $(this).width() will not
                    pic_real_height = this.height; // work for in memory images.
                });
        });
    </script>
    <style type="text/css">
        @media screen {
            div.divFooter {
                display: block;
            }
        }

        @media print {
            .printbutton {
                display: none !important;
            }
        }
    </style>
</head>
<body>
<table cellpadding="0" cellspacing="0" border="0" width="98%" align="center">
    <tr>
        <td class="top_bg">
            <div class="divFooter">
                <img src="https://im4change.in/images/logo1.jpg" height="59" border="0"
                     alt="Resource centre on India's rural distress" style="padding-top:14px;"/>
            </div>

        </td>
    </tr>
    <tr>
        <td id="topspace">&nbsp;</td>
    </tr>

    <tr id="topspace">
        <td>&nbsp;</td>
    </tr>
    <tr>
        <td height="50" style="border-bottom:1px solid #000; padding-top:10px;" class="printbutton">
            <form><input type="button" value=" Print this page "
                         onclick="window.print();return false;"/></form>
        </td>
    </tr>

    <tr>
        <td width="100%">
            <h1 class="news_headlines" style="font-style:normal">
                <strong>The low productivity trap of collateralised lending for MSMEs -Harsh Vardhan</strong></h1>
        </td>
    </tr>
    <tr>
        <td width="100%" style="font-family:Arial, 'Segoe Script', 'Segoe UI', sans-serif, serif"><font size="3">
                <p style="text-align:justify">-Ideas for India</p><p style="text-align:justify"><em>The share of bank credit extended to MSMEs increased dramatically during the pandemic. In this post, Harsh Vardhan discusses the the government guarantee of bank loans as a possible driver of this growth. He outlines the current policy of providing credit against collateral, and the constraints MSMEs face while borrowing&ndash; which leads to decreased investment and firm productivity. He argues that the learnings from the credit guarantee scheme could be used to design a permanent guarantee scheme for MSME credit.</em></p><p style="text-align:justify">Micro, small, and medium enterprises (MSMEs) are an important part of the Indian economy. Roughly between 6 and 8 million in number, they are estimated to account for around 30% of GDP and employ more than 100 million. Despite this significant role in the economy, they have been chronically credit starved. Issues of flow of credit to MSMEs has been extensively discussed for a long time and it is fair to say that it remains a policy challenge.</p><p style="text-align:justify">During the Covid-19 pandemic, MSMEs experienced a dramatic growth in credit from the banking sector. Bank credit to MSMEs, which had remained stagnant for almost five years from 2015 onwards, grew by 15% in FY2020-21, and by another 31% in FY2021-22. It is important to keep in mind that the overall bank credit growth in these two years was around 8%. Figure 1 gives details of the annual growth in bank credit to MSMEs, and the share of MSME credit in total bank credit. The share of MSMEs in bank credit, which was stable at around 8.5% for the first half of the last decade, reduced by nearly half to 4.8% by FY 2019-20. To put this in perspective, the share of (unsecured) personal loans given by the banking system in 2020 was 8% of total loans.</p><p style="text-align:justify">Please <a href="https://www.ideasforindia.in/topics/money-finance/the-low-productivity-trap-of-collateralised-lending-for-msmes.html" title="https://www.ideasforindia.in/topics/money-finance/the-low-productivity-trap-of-collateralised-lending-for-msmes.html">click here</a> to read more.&nbsp;</p>               </font>
        </td>
    </tr>
    <tr>
        <td>&nbsp;</td>
    </tr>

    <tr>
        <td height="50" style="border-top:1px solid #000; border-bottom:1px solid #000;padding-top:10px;">
            <form><input type="button" value=" Print this page "
                         onclick="window.print();return false;"/></form>
        </td>
    </tr>
</table></body>
</html>'

}
$maxBufferLength = (int) 8192
$file = '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Debugger.php'
$line = (int) 853
$message = 'Unable to emit headers. Headers sent in file=/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Debugger.php line=853'
Cake\Http\ResponseEmitter::emit() - CORE/src/Http/ResponseEmitter.php, line 48
Cake\Http\Server::emit() - CORE/src/Http/Server.php, line 141
[main] - ROOT/webroot/index.php, line 39

Warning (2): Cannot modify header information - headers already sent by (output started at /home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Debugger.php:853) [CORE/src/Http/ResponseEmitter.php, line 148]
Code Context
            $response->getStatusCode(),

            ($reasonPhrase ? ' ' . $reasonPhrase : '')

        ));
$response = object(Cake\Http\Response) {

	'status' => (int) 200,
	'contentType' => 'text/html',
	'headers' => [
		'Content-Type' => [
			[maximum depth reached]
		]
	],
	'file' => null,
	'fileRange' => [],
	'cookies' => object(Cake\Http\Cookie\CookieCollection) {},
	'cacheDirectives' => [],
	'body' => '<!DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN"
        "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd">
<html xmlns="http://www.w3.org/1999/xhtml">
<head>
    <link rel="canonical" href="https://im4change.in/<pre class="cake-error"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr67f05e82502c3-trace').style.display = (document.getElementById('cakeErr67f05e82502c3-trace').style.display == 'none' ? '' : 'none');"><b>Notice</b> (8)</a>: Undefined variable: urlPrefix [<b>APP/Template/Layout/printlayout.ctp</b>, line <b>8</b>]<div id="cakeErr67f05e82502c3-trace" class="cake-stack-trace" style="display: none;"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr67f05e82502c3-code').style.display = (document.getElementById('cakeErr67f05e82502c3-code').style.display == 'none' ? '' : 'none')">Code</a> <a href="javascript:void(0);" onclick="document.getElementById('cakeErr67f05e82502c3-context').style.display = (document.getElementById('cakeErr67f05e82502c3-context').style.display == 'none' ? '' : 'none')">Context</a><pre id="cakeErr67f05e82502c3-code" class="cake-code-dump" style="display: none;"><code><span style="color: #000000"><span style="color: #0000BB"></span><span style="color: #007700">&lt;</span><span style="color: #0000BB">head</span><span style="color: #007700">&gt;
</span></span></code>
<span class="code-highlight"><code><span style="color: #000000">&nbsp;&nbsp;&nbsp;&nbsp;&lt;link&nbsp;rel="canonical"&nbsp;href="<span style="color: #0000BB">&lt;?php&nbsp;</span><span style="color: #007700">echo&nbsp;</span><span style="color: #0000BB">Configure</span><span style="color: #007700">::</span><span style="color: #0000BB">read</span><span style="color: #007700">(</span><span style="color: #DD0000">'SITE_URL'</span><span style="color: #007700">);&nbsp;</span><span style="color: #0000BB">?&gt;&lt;?php&nbsp;</span><span style="color: #007700">echo&nbsp;</span><span style="color: #0000BB">$urlPrefix</span><span style="color: #007700">;</span><span style="color: #0000BB">?&gt;&lt;?php&nbsp;</span><span style="color: #007700">echo&nbsp;</span><span style="color: #0000BB">$article_current</span><span style="color: #007700">-&gt;</span><span style="color: #0000BB">category</span><span style="color: #007700">-&gt;</span><span style="color: #0000BB">slug</span><span style="color: #007700">;&nbsp;</span><span style="color: #0000BB">?&gt;</span>/<span style="color: #0000BB">&lt;?php&nbsp;</span><span style="color: #007700">echo&nbsp;</span><span style="color: #0000BB">$article_current</span><span style="color: #007700">-&gt;</span><span style="color: #0000BB">seo_url</span><span style="color: #007700">;&nbsp;</span><span style="color: #0000BB">?&gt;</span>.html"/&gt;
</span></code></span>
<code><span style="color: #000000"><span style="color: #0000BB">&nbsp;&nbsp;&nbsp;&nbsp;</span><span style="color: #007700">&lt;</span><span style="color: #0000BB">meta&nbsp;http</span><span style="color: #007700">-</span><span style="color: #0000BB">equiv</span><span style="color: #007700">=</span><span style="color: #DD0000">"Content-Type"&nbsp;</span><span style="color: #0000BB">content</span><span style="color: #007700">=</span><span style="color: #DD0000">"text/html;&nbsp;charset=utf-8"</span><span style="color: #007700">/&gt;
</span></span></code></pre><pre id="cakeErr67f05e82502c3-context" class="cake-context" style="display: none;">$viewFile = &#039;/home/brlfuser/public_html/src/Template/Layout/printlayout.ctp&#039;
$dataForView = [
	&#039;article_current&#039; =&gt; object(App\Model\Entity\Article) {

		&#039;id&#039; =&gt; (int) 63979,
		&#039;title&#039; =&gt; &#039;The low productivity trap of collateralised lending for MSMEs -Harsh Vardhan&#039;,
		&#039;subheading&#039; =&gt; null,
		&#039;description&#039; =&gt; &#039;&lt;p style=&quot;text-align:justify&quot;&gt;-Ideas for India&lt;/p&gt;

&lt;p style=&quot;text-align:justify&quot;&gt;&lt;em&gt;The share of bank credit extended to MSMEs increased dramatically during the pandemic. In this post, Harsh Vardhan discusses the the government guarantee of bank loans as a possible driver of this growth. He outlines the current policy of providing credit against collateral, and the constraints MSMEs face while borrowing&amp;ndash; which leads to decreased investment and firm productivity. He argues that the learnings from the credit guarantee scheme could be used to design a permanent guarantee scheme for MSME credit.&lt;/em&gt;&lt;/p&gt;

&lt;p style=&quot;text-align:justify&quot;&gt;Micro, small, and medium enterprises (MSMEs) are an important part of the Indian economy. Roughly between 6 and 8 million in number, they are estimated to account for around 30% of GDP and employ more than 100 million. Despite this significant role in the economy, they have been chronically credit starved. Issues of flow of credit to MSMEs has been extensively discussed for a long time and it is fair to say that it remains a policy challenge.&lt;/p&gt;

&lt;p style=&quot;text-align:justify&quot;&gt;During the Covid-19 pandemic, MSMEs experienced a dramatic growth in credit from the banking sector. Bank credit to MSMEs, which had remained stagnant for almost five years from 2015 onwards, grew by 15% in FY2020-21, and by another 31% in FY2021-22. It is important to keep in mind that the overall bank credit growth in these two years was around 8%. Figure 1 gives details of the annual growth in bank credit to MSMEs, and the share of MSME credit in total bank credit. The share of MSMEs in bank credit, which was stable at around 8.5% for the first half of the last decade, reduced by nearly half to 4.8% by FY 2019-20. To put this in perspective, the share of (unsecured) personal loans given by the banking system in 2020 was 8% of total loans.&lt;/p&gt;

&lt;p style=&quot;text-align:justify&quot;&gt;Please &lt;a href=&quot;https://www.ideasforindia.in/topics/money-finance/the-low-productivity-trap-of-collateralised-lending-for-msmes.html&quot;&gt;click here&lt;/a&gt; to read more.&amp;nbsp;&lt;/p&gt;
&#039;,
		&#039;credit_writer&#039; =&gt; &#039;Ideas for India, 7 October, 2022, https://www.ideasforindia.in/topics/money-finance/the-low-productivity-trap-of-collateralised-lending-for-msmes.html&#039;,
		&#039;article_img&#039; =&gt; &#039;&#039;,
		&#039;article_img_thumb&#039; =&gt; &#039;&#039;,
		&#039;status&#039; =&gt; (int) 1,
		&#039;show_on_home&#039; =&gt; (int) 1,
		&#039;lang&#039; =&gt; &#039;EN&#039;,
		&#039;category_id&#039; =&gt; (int) 16,
		&#039;tag_keyword&#039; =&gt; &#039;&#039;,
		&#039;seo_url&#039; =&gt; &#039;the-low-productivity-trap-of-collateralised-lending-for-msmes-harsh-vardhan&#039;,
		&#039;meta_title&#039; =&gt; &#039;&#039;,
		&#039;meta_keywords&#039; =&gt; &#039;&#039;,
		&#039;meta_description&#039; =&gt; &#039;&#039;,
		&#039;noindex&#039; =&gt; (int) 1,
		&#039;publish_date&#039; =&gt; object(Cake\I18n\FrozenDate) {},
		&#039;most_visit_section_id&#039; =&gt; null,
		&#039;article_big_img&#039; =&gt; null,
		&#039;liveid&#039; =&gt; null,
		&#039;created&#039; =&gt; object(Cake\I18n\FrozenTime) {},
		&#039;modified&#039; =&gt; object(Cake\I18n\FrozenTime) {},
		&#039;edate&#039; =&gt; &#039;&#039;,
		&#039;tags&#039; =&gt; [
			[maximum depth reached]
		],
		&#039;category&#039; =&gt; object(App\Model\Entity\Category) {},
		&#039;[new]&#039; =&gt; false,
		&#039;[accessible]&#039; =&gt; [
			[maximum depth reached]
		],
		&#039;[dirty]&#039; =&gt; [[maximum depth reached]],
		&#039;[original]&#039; =&gt; [[maximum depth reached]],
		&#039;[virtual]&#039; =&gt; [[maximum depth reached]],
		&#039;[hasErrors]&#039; =&gt; false,
		&#039;[errors]&#039; =&gt; [[maximum depth reached]],
		&#039;[invalid]&#039; =&gt; [[maximum depth reached]],
		&#039;[repository]&#039; =&gt; &#039;Articles&#039;
	
	},
	&#039;articleid&#039; =&gt; (int) 63979,
	&#039;metaTitle&#039; =&gt; &#039;LATEST NEWS UPDATES | The low productivity trap of collateralised lending for MSMEs -Harsh Vardhan&#039;,
	&#039;metaKeywords&#039; =&gt; &#039;Micro Small and Medium Enterprises,MSMEs,credit guarantee scheme,permanent guarantee scheme,collateralised credit,bank credit,bank loans&#039;,
	&#039;metaDesc&#039; =&gt; &#039;-Ideas for India

The share of bank credit extended to MSMEs increased dramatically during the pandemic. In this post, Harsh Vardhan discusses the the government guarantee of bank loans as a possible driver of this growth. He outlines the current policy...&#039;,
	&#039;disp&#039; =&gt; &#039;&lt;p style=&quot;text-align:justify&quot;&gt;-Ideas for India&lt;/p&gt;&lt;p style=&quot;text-align:justify&quot;&gt;&lt;em&gt;The share of bank credit extended to MSMEs increased dramatically during the pandemic. In this post, Harsh Vardhan discusses the the government guarantee of bank loans as a possible driver of this growth. He outlines the current policy of providing credit against collateral, and the constraints MSMEs face while borrowing&amp;ndash; which leads to decreased investment and firm productivity. He argues that the learnings from the credit guarantee scheme could be used to design a permanent guarantee scheme for MSME credit.&lt;/em&gt;&lt;/p&gt;&lt;p style=&quot;text-align:justify&quot;&gt;Micro, small, and medium enterprises (MSMEs) are an important part of the Indian economy. Roughly between 6 and 8 million in number, they are estimated to account for around 30% of GDP and employ more than 100 million. Despite this significant role in the economy, they have been chronically credit starved. Issues of flow of credit to MSMEs has been extensively discussed for a long time and it is fair to say that it remains a policy challenge.&lt;/p&gt;&lt;p style=&quot;text-align:justify&quot;&gt;During the Covid-19 pandemic, MSMEs experienced a dramatic growth in credit from the banking sector. Bank credit to MSMEs, which had remained stagnant for almost five years from 2015 onwards, grew by 15% in FY2020-21, and by another 31% in FY2021-22. It is important to keep in mind that the overall bank credit growth in these two years was around 8%. Figure 1 gives details of the annual growth in bank credit to MSMEs, and the share of MSME credit in total bank credit. The share of MSMEs in bank credit, which was stable at around 8.5% for the first half of the last decade, reduced by nearly half to 4.8% by FY 2019-20. To put this in perspective, the share of (unsecured) personal loans given by the banking system in 2020 was 8% of total loans.&lt;/p&gt;&lt;p style=&quot;text-align:justify&quot;&gt;Please &lt;a href=&quot;https://www.ideasforindia.in/topics/money-finance/the-low-productivity-trap-of-collateralised-lending-for-msmes.html&quot; title=&quot;https://www.ideasforindia.in/topics/money-finance/the-low-productivity-trap-of-collateralised-lending-for-msmes.html&quot;&gt;click here&lt;/a&gt; to read more.&amp;nbsp;&lt;/p&gt;&#039;,
	&#039;lang&#039; =&gt; &#039;English&#039;,
	&#039;SITE_URL&#039; =&gt; &#039;https://im4change.in/&#039;,
	&#039;site_title&#039; =&gt; &#039;im4change&#039;,
	&#039;adminprix&#039; =&gt; &#039;admin&#039;
]
$article_current = object(App\Model\Entity\Article) {

	&#039;id&#039; =&gt; (int) 63979,
	&#039;title&#039; =&gt; &#039;The low productivity trap of collateralised lending for MSMEs -Harsh Vardhan&#039;,
	&#039;subheading&#039; =&gt; null,
	&#039;description&#039; =&gt; &#039;&lt;p style=&quot;text-align:justify&quot;&gt;-Ideas for India&lt;/p&gt;

&lt;p style=&quot;text-align:justify&quot;&gt;&lt;em&gt;The share of bank credit extended to MSMEs increased dramatically during the pandemic. In this post, Harsh Vardhan discusses the the government guarantee of bank loans as a possible driver of this growth. He outlines the current policy of providing credit against collateral, and the constraints MSMEs face while borrowing&amp;ndash; which leads to decreased investment and firm productivity. He argues that the learnings from the credit guarantee scheme could be used to design a permanent guarantee scheme for MSME credit.&lt;/em&gt;&lt;/p&gt;

&lt;p style=&quot;text-align:justify&quot;&gt;Micro, small, and medium enterprises (MSMEs) are an important part of the Indian economy. Roughly between 6 and 8 million in number, they are estimated to account for around 30% of GDP and employ more than 100 million. Despite this significant role in the economy, they have been chronically credit starved. Issues of flow of credit to MSMEs has been extensively discussed for a long time and it is fair to say that it remains a policy challenge.&lt;/p&gt;

&lt;p style=&quot;text-align:justify&quot;&gt;During the Covid-19 pandemic, MSMEs experienced a dramatic growth in credit from the banking sector. Bank credit to MSMEs, which had remained stagnant for almost five years from 2015 onwards, grew by 15% in FY2020-21, and by another 31% in FY2021-22. It is important to keep in mind that the overall bank credit growth in these two years was around 8%. Figure 1 gives details of the annual growth in bank credit to MSMEs, and the share of MSME credit in total bank credit. The share of MSMEs in bank credit, which was stable at around 8.5% for the first half of the last decade, reduced by nearly half to 4.8% by FY 2019-20. To put this in perspective, the share of (unsecured) personal loans given by the banking system in 2020 was 8% of total loans.&lt;/p&gt;

&lt;p style=&quot;text-align:justify&quot;&gt;Please &lt;a href=&quot;https://www.ideasforindia.in/topics/money-finance/the-low-productivity-trap-of-collateralised-lending-for-msmes.html&quot;&gt;click here&lt;/a&gt; to read more.&amp;nbsp;&lt;/p&gt;
&#039;,
	&#039;credit_writer&#039; =&gt; &#039;Ideas for India, 7 October, 2022, https://www.ideasforindia.in/topics/money-finance/the-low-productivity-trap-of-collateralised-lending-for-msmes.html&#039;,
	&#039;article_img&#039; =&gt; &#039;&#039;,
	&#039;article_img_thumb&#039; =&gt; &#039;&#039;,
	&#039;status&#039; =&gt; (int) 1,
	&#039;show_on_home&#039; =&gt; (int) 1,
	&#039;lang&#039; =&gt; &#039;EN&#039;,
	&#039;category_id&#039; =&gt; (int) 16,
	&#039;tag_keyword&#039; =&gt; &#039;&#039;,
	&#039;seo_url&#039; =&gt; &#039;the-low-productivity-trap-of-collateralised-lending-for-msmes-harsh-vardhan&#039;,
	&#039;meta_title&#039; =&gt; &#039;&#039;,
	&#039;meta_keywords&#039; =&gt; &#039;&#039;,
	&#039;meta_description&#039; =&gt; &#039;&#039;,
	&#039;noindex&#039; =&gt; (int) 1,
	&#039;publish_date&#039; =&gt; object(Cake\I18n\FrozenDate) {},
	&#039;most_visit_section_id&#039; =&gt; null,
	&#039;article_big_img&#039; =&gt; null,
	&#039;liveid&#039; =&gt; null,
	&#039;created&#039; =&gt; object(Cake\I18n\FrozenTime) {},
	&#039;modified&#039; =&gt; object(Cake\I18n\FrozenTime) {},
	&#039;edate&#039; =&gt; &#039;&#039;,
	&#039;tags&#039; =&gt; [
		(int) 0 =&gt; object(Cake\ORM\Entity) {},
		(int) 1 =&gt; object(Cake\ORM\Entity) {},
		(int) 2 =&gt; object(Cake\ORM\Entity) {},
		(int) 3 =&gt; object(Cake\ORM\Entity) {},
		(int) 4 =&gt; object(Cake\ORM\Entity) {},
		(int) 5 =&gt; object(Cake\ORM\Entity) {},
		(int) 6 =&gt; object(Cake\ORM\Entity) {}
	],
	&#039;category&#039; =&gt; object(App\Model\Entity\Category) {},
	&#039;[new]&#039; =&gt; false,
	&#039;[accessible]&#039; =&gt; [
		&#039;*&#039; =&gt; true,
		&#039;id&#039; =&gt; false
	],
	&#039;[dirty]&#039; =&gt; [],
	&#039;[original]&#039; =&gt; [],
	&#039;[virtual]&#039; =&gt; [],
	&#039;[hasErrors]&#039; =&gt; false,
	&#039;[errors]&#039; =&gt; [],
	&#039;[invalid]&#039; =&gt; [],
	&#039;[repository]&#039; =&gt; &#039;Articles&#039;

}
$articleid = (int) 63979
$metaTitle = &#039;LATEST NEWS UPDATES | The low productivity trap of collateralised lending for MSMEs -Harsh Vardhan&#039;
$metaKeywords = &#039;Micro Small and Medium Enterprises,MSMEs,credit guarantee scheme,permanent guarantee scheme,collateralised credit,bank credit,bank loans&#039;
$metaDesc = &#039;-Ideas for India

The share of bank credit extended to MSMEs increased dramatically during the pandemic. In this post, Harsh Vardhan discusses the the government guarantee of bank loans as a possible driver of this growth. He outlines the current policy...&#039;
$disp = &#039;&lt;p style=&quot;text-align:justify&quot;&gt;-Ideas for India&lt;/p&gt;&lt;p style=&quot;text-align:justify&quot;&gt;&lt;em&gt;The share of bank credit extended to MSMEs increased dramatically during the pandemic. In this post, Harsh Vardhan discusses the the government guarantee of bank loans as a possible driver of this growth. He outlines the current policy of providing credit against collateral, and the constraints MSMEs face while borrowing&amp;ndash; which leads to decreased investment and firm productivity. He argues that the learnings from the credit guarantee scheme could be used to design a permanent guarantee scheme for MSME credit.&lt;/em&gt;&lt;/p&gt;&lt;p style=&quot;text-align:justify&quot;&gt;Micro, small, and medium enterprises (MSMEs) are an important part of the Indian economy. Roughly between 6 and 8 million in number, they are estimated to account for around 30% of GDP and employ more than 100 million. Despite this significant role in the economy, they have been chronically credit starved. Issues of flow of credit to MSMEs has been extensively discussed for a long time and it is fair to say that it remains a policy challenge.&lt;/p&gt;&lt;p style=&quot;text-align:justify&quot;&gt;During the Covid-19 pandemic, MSMEs experienced a dramatic growth in credit from the banking sector. Bank credit to MSMEs, which had remained stagnant for almost five years from 2015 onwards, grew by 15% in FY2020-21, and by another 31% in FY2021-22. It is important to keep in mind that the overall bank credit growth in these two years was around 8%. Figure 1 gives details of the annual growth in bank credit to MSMEs, and the share of MSME credit in total bank credit. The share of MSMEs in bank credit, which was stable at around 8.5% for the first half of the last decade, reduced by nearly half to 4.8% by FY 2019-20. To put this in perspective, the share of (unsecured) personal loans given by the banking system in 2020 was 8% of total loans.&lt;/p&gt;&lt;p style=&quot;text-align:justify&quot;&gt;Please &lt;a href=&quot;https://www.ideasforindia.in/topics/money-finance/the-low-productivity-trap-of-collateralised-lending-for-msmes.html&quot; title=&quot;https://www.ideasforindia.in/topics/money-finance/the-low-productivity-trap-of-collateralised-lending-for-msmes.html&quot;&gt;click here&lt;/a&gt; to read more.&amp;nbsp;&lt;/p&gt;&#039;
$lang = &#039;English&#039;
$SITE_URL = &#039;https://im4change.in/&#039;
$site_title = &#039;im4change&#039;
$adminprix = &#039;admin&#039;</pre><pre class="stack-trace">include - APP/Template/Layout/printlayout.ctp, line 8
Cake\View\View::_evaluate() - CORE/src/View/View.php, line 1413
Cake\View\View::_render() - CORE/src/View/View.php, line 1374
Cake\View\View::renderLayout() - CORE/src/View/View.php, line 927
Cake\View\View::render() - CORE/src/View/View.php, line 885
Cake\Controller\Controller::render() - CORE/src/Controller/Controller.php, line 791
Cake\Http\ActionDispatcher::_invoke() - CORE/src/Http/ActionDispatcher.php, line 126
Cake\Http\ActionDispatcher::dispatch() - CORE/src/Http/ActionDispatcher.php, line 94
Cake\Http\BaseApplication::__invoke() - CORE/src/Http/BaseApplication.php, line 235
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\RoutingMiddleware::__invoke() - CORE/src/Routing/Middleware/RoutingMiddleware.php, line 162
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\AssetMiddleware::__invoke() - CORE/src/Routing/Middleware/AssetMiddleware.php, line 88
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Error\Middleware\ErrorHandlerMiddleware::__invoke() - CORE/src/Error/Middleware/ErrorHandlerMiddleware.php, line 96
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Http\Runner::run() - CORE/src/Http/Runner.php, line 51</pre></div></pre>latest-news-updates/the-low-productivity-trap-of-collateralised-lending-for-msmes-harsh-vardhan.html"/>
    <meta http-equiv="Content-Type" content="text/html; charset=utf-8"/>
    <link href="https://im4change.in/css/control.css" rel="stylesheet" type="text/css"
          media="all"/>
    <title>LATEST NEWS UPDATES | The low productivity trap of collateralised lending for MSMEs -Harsh Vardhan | Im4change.org</title>
    <meta name="description" content="-Ideas for India

The share of bank credit extended to MSMEs increased dramatically during the pandemic. In this post, Harsh Vardhan discusses the the government guarantee of bank loans as a possible driver of this growth. He outlines the current policy..."/>
    <script src="https://im4change.in/js/jquery-1.10.2.js"></script>
    <script type="text/javascript" src="https://im4change.in/js/jquery-migrate.min.js"></script>
    <script language="javascript" type="text/javascript">

        $(document).ready(function () {
            var img = $("img")[0]; // Get my img elem
            var pic_real_width, pic_real_height;
            $("<img/>") // Make in memory copy of image to avoid css issues
                .attr("src", $(img).attr("src"))
                .load(function () {
                    pic_real_width = this.width;   // Note: $(this).width() will not
                    pic_real_height = this.height; // work for in memory images.
                });
        });
    </script>
    <style type="text/css">
        @media screen {
            div.divFooter {
                display: block;
            }
        }

        @media print {
            .printbutton {
                display: none !important;
            }
        }
    </style>
</head>
<body>
<table cellpadding="0" cellspacing="0" border="0" width="98%" align="center">
    <tr>
        <td class="top_bg">
            <div class="divFooter">
                <img src="https://im4change.in/images/logo1.jpg" height="59" border="0"
                     alt="Resource centre on India's rural distress" style="padding-top:14px;"/>
            </div>

        </td>
    </tr>
    <tr>
        <td id="topspace">&nbsp;</td>
    </tr>

    <tr id="topspace">
        <td>&nbsp;</td>
    </tr>
    <tr>
        <td height="50" style="border-bottom:1px solid #000; padding-top:10px;" class="printbutton">
            <form><input type="button" value=" Print this page "
                         onclick="window.print();return false;"/></form>
        </td>
    </tr>

    <tr>
        <td width="100%">
            <h1 class="news_headlines" style="font-style:normal">
                <strong>The low productivity trap of collateralised lending for MSMEs -Harsh Vardhan</strong></h1>
        </td>
    </tr>
    <tr>
        <td width="100%" style="font-family:Arial, 'Segoe Script', 'Segoe UI', sans-serif, serif"><font size="3">
                <p style="text-align:justify">-Ideas for India</p><p style="text-align:justify"><em>The share of bank credit extended to MSMEs increased dramatically during the pandemic. In this post, Harsh Vardhan discusses the the government guarantee of bank loans as a possible driver of this growth. He outlines the current policy of providing credit against collateral, and the constraints MSMEs face while borrowing&ndash; which leads to decreased investment and firm productivity. He argues that the learnings from the credit guarantee scheme could be used to design a permanent guarantee scheme for MSME credit.</em></p><p style="text-align:justify">Micro, small, and medium enterprises (MSMEs) are an important part of the Indian economy. Roughly between 6 and 8 million in number, they are estimated to account for around 30% of GDP and employ more than 100 million. Despite this significant role in the economy, they have been chronically credit starved. Issues of flow of credit to MSMEs has been extensively discussed for a long time and it is fair to say that it remains a policy challenge.</p><p style="text-align:justify">During the Covid-19 pandemic, MSMEs experienced a dramatic growth in credit from the banking sector. Bank credit to MSMEs, which had remained stagnant for almost five years from 2015 onwards, grew by 15% in FY2020-21, and by another 31% in FY2021-22. It is important to keep in mind that the overall bank credit growth in these two years was around 8%. Figure 1 gives details of the annual growth in bank credit to MSMEs, and the share of MSME credit in total bank credit. The share of MSMEs in bank credit, which was stable at around 8.5% for the first half of the last decade, reduced by nearly half to 4.8% by FY 2019-20. To put this in perspective, the share of (unsecured) personal loans given by the banking system in 2020 was 8% of total loans.</p><p style="text-align:justify">Please <a href="https://www.ideasforindia.in/topics/money-finance/the-low-productivity-trap-of-collateralised-lending-for-msmes.html" title="https://www.ideasforindia.in/topics/money-finance/the-low-productivity-trap-of-collateralised-lending-for-msmes.html">click here</a> to read more.&nbsp;</p>               </font>
        </td>
    </tr>
    <tr>
        <td>&nbsp;</td>
    </tr>

    <tr>
        <td height="50" style="border-top:1px solid #000; border-bottom:1px solid #000;padding-top:10px;">
            <form><input type="button" value=" Print this page "
                         onclick="window.print();return false;"/></form>
        </td>
    </tr>
</table></body>
</html>'

}
$reasonPhrase = 'OK'
header - [internal], line ??
Cake\Http\ResponseEmitter::emitStatusLine() - CORE/src/Http/ResponseEmitter.php, line 148
Cake\Http\ResponseEmitter::emit() - CORE/src/Http/ResponseEmitter.php, line 54
Cake\Http\Server::emit() - CORE/src/Http/Server.php, line 141
[main] - ROOT/webroot/index.php, line 39

Warning (2): Cannot modify header information - headers already sent by (output started at /home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Debugger.php:853) [CORE/src/Http/ResponseEmitter.php, line 181]
Code Context
                    $value

                ), $first);

                $first = false;
$response = object(Cake\Http\Response) {

	'status' => (int) 200,
	'contentType' => 'text/html',
	'headers' => [
		'Content-Type' => [
			[maximum depth reached]
		]
	],
	'file' => null,
	'fileRange' => [],
	'cookies' => object(Cake\Http\Cookie\CookieCollection) {},
	'cacheDirectives' => [],
	'body' => '<!DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN"
        "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd">
<html xmlns="http://www.w3.org/1999/xhtml">
<head>
    <link rel="canonical" href="https://im4change.in/<pre class="cake-error"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr67f05e82502c3-trace').style.display = (document.getElementById('cakeErr67f05e82502c3-trace').style.display == 'none' ? '' : 'none');"><b>Notice</b> (8)</a>: Undefined variable: urlPrefix [<b>APP/Template/Layout/printlayout.ctp</b>, line <b>8</b>]<div id="cakeErr67f05e82502c3-trace" class="cake-stack-trace" style="display: none;"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr67f05e82502c3-code').style.display = (document.getElementById('cakeErr67f05e82502c3-code').style.display == 'none' ? '' : 'none')">Code</a> <a href="javascript:void(0);" onclick="document.getElementById('cakeErr67f05e82502c3-context').style.display = (document.getElementById('cakeErr67f05e82502c3-context').style.display == 'none' ? '' : 'none')">Context</a><pre id="cakeErr67f05e82502c3-code" class="cake-code-dump" style="display: none;"><code><span style="color: #000000"><span style="color: #0000BB"></span><span style="color: #007700">&lt;</span><span style="color: #0000BB">head</span><span style="color: #007700">&gt;
</span></span></code>
<span class="code-highlight"><code><span style="color: #000000">&nbsp;&nbsp;&nbsp;&nbsp;&lt;link&nbsp;rel="canonical"&nbsp;href="<span style="color: #0000BB">&lt;?php&nbsp;</span><span style="color: #007700">echo&nbsp;</span><span style="color: #0000BB">Configure</span><span style="color: #007700">::</span><span style="color: #0000BB">read</span><span style="color: #007700">(</span><span style="color: #DD0000">'SITE_URL'</span><span style="color: #007700">);&nbsp;</span><span style="color: #0000BB">?&gt;&lt;?php&nbsp;</span><span style="color: #007700">echo&nbsp;</span><span style="color: #0000BB">$urlPrefix</span><span style="color: #007700">;</span><span style="color: #0000BB">?&gt;&lt;?php&nbsp;</span><span style="color: #007700">echo&nbsp;</span><span style="color: #0000BB">$article_current</span><span style="color: #007700">-&gt;</span><span style="color: #0000BB">category</span><span style="color: #007700">-&gt;</span><span style="color: #0000BB">slug</span><span style="color: #007700">;&nbsp;</span><span style="color: #0000BB">?&gt;</span>/<span style="color: #0000BB">&lt;?php&nbsp;</span><span style="color: #007700">echo&nbsp;</span><span style="color: #0000BB">$article_current</span><span style="color: #007700">-&gt;</span><span style="color: #0000BB">seo_url</span><span style="color: #007700">;&nbsp;</span><span style="color: #0000BB">?&gt;</span>.html"/&gt;
</span></code></span>
<code><span style="color: #000000"><span style="color: #0000BB">&nbsp;&nbsp;&nbsp;&nbsp;</span><span style="color: #007700">&lt;</span><span style="color: #0000BB">meta&nbsp;http</span><span style="color: #007700">-</span><span style="color: #0000BB">equiv</span><span style="color: #007700">=</span><span style="color: #DD0000">"Content-Type"&nbsp;</span><span style="color: #0000BB">content</span><span style="color: #007700">=</span><span style="color: #DD0000">"text/html;&nbsp;charset=utf-8"</span><span style="color: #007700">/&gt;
</span></span></code></pre><pre id="cakeErr67f05e82502c3-context" class="cake-context" style="display: none;">$viewFile = &#039;/home/brlfuser/public_html/src/Template/Layout/printlayout.ctp&#039;
$dataForView = [
	&#039;article_current&#039; =&gt; object(App\Model\Entity\Article) {

		&#039;id&#039; =&gt; (int) 63979,
		&#039;title&#039; =&gt; &#039;The low productivity trap of collateralised lending for MSMEs -Harsh Vardhan&#039;,
		&#039;subheading&#039; =&gt; null,
		&#039;description&#039; =&gt; &#039;&lt;p style=&quot;text-align:justify&quot;&gt;-Ideas for India&lt;/p&gt;

&lt;p style=&quot;text-align:justify&quot;&gt;&lt;em&gt;The share of bank credit extended to MSMEs increased dramatically during the pandemic. In this post, Harsh Vardhan discusses the the government guarantee of bank loans as a possible driver of this growth. He outlines the current policy of providing credit against collateral, and the constraints MSMEs face while borrowing&amp;ndash; which leads to decreased investment and firm productivity. He argues that the learnings from the credit guarantee scheme could be used to design a permanent guarantee scheme for MSME credit.&lt;/em&gt;&lt;/p&gt;

&lt;p style=&quot;text-align:justify&quot;&gt;Micro, small, and medium enterprises (MSMEs) are an important part of the Indian economy. Roughly between 6 and 8 million in number, they are estimated to account for around 30% of GDP and employ more than 100 million. Despite this significant role in the economy, they have been chronically credit starved. Issues of flow of credit to MSMEs has been extensively discussed for a long time and it is fair to say that it remains a policy challenge.&lt;/p&gt;

&lt;p style=&quot;text-align:justify&quot;&gt;During the Covid-19 pandemic, MSMEs experienced a dramatic growth in credit from the banking sector. Bank credit to MSMEs, which had remained stagnant for almost five years from 2015 onwards, grew by 15% in FY2020-21, and by another 31% in FY2021-22. It is important to keep in mind that the overall bank credit growth in these two years was around 8%. Figure 1 gives details of the annual growth in bank credit to MSMEs, and the share of MSME credit in total bank credit. The share of MSMEs in bank credit, which was stable at around 8.5% for the first half of the last decade, reduced by nearly half to 4.8% by FY 2019-20. To put this in perspective, the share of (unsecured) personal loans given by the banking system in 2020 was 8% of total loans.&lt;/p&gt;

&lt;p style=&quot;text-align:justify&quot;&gt;Please &lt;a href=&quot;https://www.ideasforindia.in/topics/money-finance/the-low-productivity-trap-of-collateralised-lending-for-msmes.html&quot;&gt;click here&lt;/a&gt; to read more.&amp;nbsp;&lt;/p&gt;
&#039;,
		&#039;credit_writer&#039; =&gt; &#039;Ideas for India, 7 October, 2022, https://www.ideasforindia.in/topics/money-finance/the-low-productivity-trap-of-collateralised-lending-for-msmes.html&#039;,
		&#039;article_img&#039; =&gt; &#039;&#039;,
		&#039;article_img_thumb&#039; =&gt; &#039;&#039;,
		&#039;status&#039; =&gt; (int) 1,
		&#039;show_on_home&#039; =&gt; (int) 1,
		&#039;lang&#039; =&gt; &#039;EN&#039;,
		&#039;category_id&#039; =&gt; (int) 16,
		&#039;tag_keyword&#039; =&gt; &#039;&#039;,
		&#039;seo_url&#039; =&gt; &#039;the-low-productivity-trap-of-collateralised-lending-for-msmes-harsh-vardhan&#039;,
		&#039;meta_title&#039; =&gt; &#039;&#039;,
		&#039;meta_keywords&#039; =&gt; &#039;&#039;,
		&#039;meta_description&#039; =&gt; &#039;&#039;,
		&#039;noindex&#039; =&gt; (int) 1,
		&#039;publish_date&#039; =&gt; object(Cake\I18n\FrozenDate) {},
		&#039;most_visit_section_id&#039; =&gt; null,
		&#039;article_big_img&#039; =&gt; null,
		&#039;liveid&#039; =&gt; null,
		&#039;created&#039; =&gt; object(Cake\I18n\FrozenTime) {},
		&#039;modified&#039; =&gt; object(Cake\I18n\FrozenTime) {},
		&#039;edate&#039; =&gt; &#039;&#039;,
		&#039;tags&#039; =&gt; [
			[maximum depth reached]
		],
		&#039;category&#039; =&gt; object(App\Model\Entity\Category) {},
		&#039;[new]&#039; =&gt; false,
		&#039;[accessible]&#039; =&gt; [
			[maximum depth reached]
		],
		&#039;[dirty]&#039; =&gt; [[maximum depth reached]],
		&#039;[original]&#039; =&gt; [[maximum depth reached]],
		&#039;[virtual]&#039; =&gt; [[maximum depth reached]],
		&#039;[hasErrors]&#039; =&gt; false,
		&#039;[errors]&#039; =&gt; [[maximum depth reached]],
		&#039;[invalid]&#039; =&gt; [[maximum depth reached]],
		&#039;[repository]&#039; =&gt; &#039;Articles&#039;
	
	},
	&#039;articleid&#039; =&gt; (int) 63979,
	&#039;metaTitle&#039; =&gt; &#039;LATEST NEWS UPDATES | The low productivity trap of collateralised lending for MSMEs -Harsh Vardhan&#039;,
	&#039;metaKeywords&#039; =&gt; &#039;Micro Small and Medium Enterprises,MSMEs,credit guarantee scheme,permanent guarantee scheme,collateralised credit,bank credit,bank loans&#039;,
	&#039;metaDesc&#039; =&gt; &#039;-Ideas for India

The share of bank credit extended to MSMEs increased dramatically during the pandemic. In this post, Harsh Vardhan discusses the the government guarantee of bank loans as a possible driver of this growth. He outlines the current policy...&#039;,
	&#039;disp&#039; =&gt; &#039;&lt;p style=&quot;text-align:justify&quot;&gt;-Ideas for India&lt;/p&gt;&lt;p style=&quot;text-align:justify&quot;&gt;&lt;em&gt;The share of bank credit extended to MSMEs increased dramatically during the pandemic. In this post, Harsh Vardhan discusses the the government guarantee of bank loans as a possible driver of this growth. He outlines the current policy of providing credit against collateral, and the constraints MSMEs face while borrowing&amp;ndash; which leads to decreased investment and firm productivity. He argues that the learnings from the credit guarantee scheme could be used to design a permanent guarantee scheme for MSME credit.&lt;/em&gt;&lt;/p&gt;&lt;p style=&quot;text-align:justify&quot;&gt;Micro, small, and medium enterprises (MSMEs) are an important part of the Indian economy. Roughly between 6 and 8 million in number, they are estimated to account for around 30% of GDP and employ more than 100 million. Despite this significant role in the economy, they have been chronically credit starved. Issues of flow of credit to MSMEs has been extensively discussed for a long time and it is fair to say that it remains a policy challenge.&lt;/p&gt;&lt;p style=&quot;text-align:justify&quot;&gt;During the Covid-19 pandemic, MSMEs experienced a dramatic growth in credit from the banking sector. Bank credit to MSMEs, which had remained stagnant for almost five years from 2015 onwards, grew by 15% in FY2020-21, and by another 31% in FY2021-22. It is important to keep in mind that the overall bank credit growth in these two years was around 8%. Figure 1 gives details of the annual growth in bank credit to MSMEs, and the share of MSME credit in total bank credit. The share of MSMEs in bank credit, which was stable at around 8.5% for the first half of the last decade, reduced by nearly half to 4.8% by FY 2019-20. To put this in perspective, the share of (unsecured) personal loans given by the banking system in 2020 was 8% of total loans.&lt;/p&gt;&lt;p style=&quot;text-align:justify&quot;&gt;Please &lt;a href=&quot;https://www.ideasforindia.in/topics/money-finance/the-low-productivity-trap-of-collateralised-lending-for-msmes.html&quot; title=&quot;https://www.ideasforindia.in/topics/money-finance/the-low-productivity-trap-of-collateralised-lending-for-msmes.html&quot;&gt;click here&lt;/a&gt; to read more.&amp;nbsp;&lt;/p&gt;&#039;,
	&#039;lang&#039; =&gt; &#039;English&#039;,
	&#039;SITE_URL&#039; =&gt; &#039;https://im4change.in/&#039;,
	&#039;site_title&#039; =&gt; &#039;im4change&#039;,
	&#039;adminprix&#039; =&gt; &#039;admin&#039;
]
$article_current = object(App\Model\Entity\Article) {

	&#039;id&#039; =&gt; (int) 63979,
	&#039;title&#039; =&gt; &#039;The low productivity trap of collateralised lending for MSMEs -Harsh Vardhan&#039;,
	&#039;subheading&#039; =&gt; null,
	&#039;description&#039; =&gt; &#039;&lt;p style=&quot;text-align:justify&quot;&gt;-Ideas for India&lt;/p&gt;

&lt;p style=&quot;text-align:justify&quot;&gt;&lt;em&gt;The share of bank credit extended to MSMEs increased dramatically during the pandemic. In this post, Harsh Vardhan discusses the the government guarantee of bank loans as a possible driver of this growth. He outlines the current policy of providing credit against collateral, and the constraints MSMEs face while borrowing&amp;ndash; which leads to decreased investment and firm productivity. He argues that the learnings from the credit guarantee scheme could be used to design a permanent guarantee scheme for MSME credit.&lt;/em&gt;&lt;/p&gt;

&lt;p style=&quot;text-align:justify&quot;&gt;Micro, small, and medium enterprises (MSMEs) are an important part of the Indian economy. Roughly between 6 and 8 million in number, they are estimated to account for around 30% of GDP and employ more than 100 million. Despite this significant role in the economy, they have been chronically credit starved. Issues of flow of credit to MSMEs has been extensively discussed for a long time and it is fair to say that it remains a policy challenge.&lt;/p&gt;

&lt;p style=&quot;text-align:justify&quot;&gt;During the Covid-19 pandemic, MSMEs experienced a dramatic growth in credit from the banking sector. Bank credit to MSMEs, which had remained stagnant for almost five years from 2015 onwards, grew by 15% in FY2020-21, and by another 31% in FY2021-22. It is important to keep in mind that the overall bank credit growth in these two years was around 8%. Figure 1 gives details of the annual growth in bank credit to MSMEs, and the share of MSME credit in total bank credit. The share of MSMEs in bank credit, which was stable at around 8.5% for the first half of the last decade, reduced by nearly half to 4.8% by FY 2019-20. To put this in perspective, the share of (unsecured) personal loans given by the banking system in 2020 was 8% of total loans.&lt;/p&gt;

&lt;p style=&quot;text-align:justify&quot;&gt;Please &lt;a href=&quot;https://www.ideasforindia.in/topics/money-finance/the-low-productivity-trap-of-collateralised-lending-for-msmes.html&quot;&gt;click here&lt;/a&gt; to read more.&amp;nbsp;&lt;/p&gt;
&#039;,
	&#039;credit_writer&#039; =&gt; &#039;Ideas for India, 7 October, 2022, https://www.ideasforindia.in/topics/money-finance/the-low-productivity-trap-of-collateralised-lending-for-msmes.html&#039;,
	&#039;article_img&#039; =&gt; &#039;&#039;,
	&#039;article_img_thumb&#039; =&gt; &#039;&#039;,
	&#039;status&#039; =&gt; (int) 1,
	&#039;show_on_home&#039; =&gt; (int) 1,
	&#039;lang&#039; =&gt; &#039;EN&#039;,
	&#039;category_id&#039; =&gt; (int) 16,
	&#039;tag_keyword&#039; =&gt; &#039;&#039;,
	&#039;seo_url&#039; =&gt; &#039;the-low-productivity-trap-of-collateralised-lending-for-msmes-harsh-vardhan&#039;,
	&#039;meta_title&#039; =&gt; &#039;&#039;,
	&#039;meta_keywords&#039; =&gt; &#039;&#039;,
	&#039;meta_description&#039; =&gt; &#039;&#039;,
	&#039;noindex&#039; =&gt; (int) 1,
	&#039;publish_date&#039; =&gt; object(Cake\I18n\FrozenDate) {},
	&#039;most_visit_section_id&#039; =&gt; null,
	&#039;article_big_img&#039; =&gt; null,
	&#039;liveid&#039; =&gt; null,
	&#039;created&#039; =&gt; object(Cake\I18n\FrozenTime) {},
	&#039;modified&#039; =&gt; object(Cake\I18n\FrozenTime) {},
	&#039;edate&#039; =&gt; &#039;&#039;,
	&#039;tags&#039; =&gt; [
		(int) 0 =&gt; object(Cake\ORM\Entity) {},
		(int) 1 =&gt; object(Cake\ORM\Entity) {},
		(int) 2 =&gt; object(Cake\ORM\Entity) {},
		(int) 3 =&gt; object(Cake\ORM\Entity) {},
		(int) 4 =&gt; object(Cake\ORM\Entity) {},
		(int) 5 =&gt; object(Cake\ORM\Entity) {},
		(int) 6 =&gt; object(Cake\ORM\Entity) {}
	],
	&#039;category&#039; =&gt; object(App\Model\Entity\Category) {},
	&#039;[new]&#039; =&gt; false,
	&#039;[accessible]&#039; =&gt; [
		&#039;*&#039; =&gt; true,
		&#039;id&#039; =&gt; false
	],
	&#039;[dirty]&#039; =&gt; [],
	&#039;[original]&#039; =&gt; [],
	&#039;[virtual]&#039; =&gt; [],
	&#039;[hasErrors]&#039; =&gt; false,
	&#039;[errors]&#039; =&gt; [],
	&#039;[invalid]&#039; =&gt; [],
	&#039;[repository]&#039; =&gt; &#039;Articles&#039;

}
$articleid = (int) 63979
$metaTitle = &#039;LATEST NEWS UPDATES | The low productivity trap of collateralised lending for MSMEs -Harsh Vardhan&#039;
$metaKeywords = &#039;Micro Small and Medium Enterprises,MSMEs,credit guarantee scheme,permanent guarantee scheme,collateralised credit,bank credit,bank loans&#039;
$metaDesc = &#039;-Ideas for India

The share of bank credit extended to MSMEs increased dramatically during the pandemic. In this post, Harsh Vardhan discusses the the government guarantee of bank loans as a possible driver of this growth. He outlines the current policy...&#039;
$disp = &#039;&lt;p style=&quot;text-align:justify&quot;&gt;-Ideas for India&lt;/p&gt;&lt;p style=&quot;text-align:justify&quot;&gt;&lt;em&gt;The share of bank credit extended to MSMEs increased dramatically during the pandemic. In this post, Harsh Vardhan discusses the the government guarantee of bank loans as a possible driver of this growth. He outlines the current policy of providing credit against collateral, and the constraints MSMEs face while borrowing&amp;ndash; which leads to decreased investment and firm productivity. He argues that the learnings from the credit guarantee scheme could be used to design a permanent guarantee scheme for MSME credit.&lt;/em&gt;&lt;/p&gt;&lt;p style=&quot;text-align:justify&quot;&gt;Micro, small, and medium enterprises (MSMEs) are an important part of the Indian economy. Roughly between 6 and 8 million in number, they are estimated to account for around 30% of GDP and employ more than 100 million. Despite this significant role in the economy, they have been chronically credit starved. Issues of flow of credit to MSMEs has been extensively discussed for a long time and it is fair to say that it remains a policy challenge.&lt;/p&gt;&lt;p style=&quot;text-align:justify&quot;&gt;During the Covid-19 pandemic, MSMEs experienced a dramatic growth in credit from the banking sector. Bank credit to MSMEs, which had remained stagnant for almost five years from 2015 onwards, grew by 15% in FY2020-21, and by another 31% in FY2021-22. It is important to keep in mind that the overall bank credit growth in these two years was around 8%. Figure 1 gives details of the annual growth in bank credit to MSMEs, and the share of MSME credit in total bank credit. The share of MSMEs in bank credit, which was stable at around 8.5% for the first half of the last decade, reduced by nearly half to 4.8% by FY 2019-20. To put this in perspective, the share of (unsecured) personal loans given by the banking system in 2020 was 8% of total loans.&lt;/p&gt;&lt;p style=&quot;text-align:justify&quot;&gt;Please &lt;a href=&quot;https://www.ideasforindia.in/topics/money-finance/the-low-productivity-trap-of-collateralised-lending-for-msmes.html&quot; title=&quot;https://www.ideasforindia.in/topics/money-finance/the-low-productivity-trap-of-collateralised-lending-for-msmes.html&quot;&gt;click here&lt;/a&gt; to read more.&amp;nbsp;&lt;/p&gt;&#039;
$lang = &#039;English&#039;
$SITE_URL = &#039;https://im4change.in/&#039;
$site_title = &#039;im4change&#039;
$adminprix = &#039;admin&#039;</pre><pre class="stack-trace">include - APP/Template/Layout/printlayout.ctp, line 8
Cake\View\View::_evaluate() - CORE/src/View/View.php, line 1413
Cake\View\View::_render() - CORE/src/View/View.php, line 1374
Cake\View\View::renderLayout() - CORE/src/View/View.php, line 927
Cake\View\View::render() - CORE/src/View/View.php, line 885
Cake\Controller\Controller::render() - CORE/src/Controller/Controller.php, line 791
Cake\Http\ActionDispatcher::_invoke() - CORE/src/Http/ActionDispatcher.php, line 126
Cake\Http\ActionDispatcher::dispatch() - CORE/src/Http/ActionDispatcher.php, line 94
Cake\Http\BaseApplication::__invoke() - CORE/src/Http/BaseApplication.php, line 235
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\RoutingMiddleware::__invoke() - CORE/src/Routing/Middleware/RoutingMiddleware.php, line 162
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\AssetMiddleware::__invoke() - CORE/src/Routing/Middleware/AssetMiddleware.php, line 88
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Error\Middleware\ErrorHandlerMiddleware::__invoke() - CORE/src/Error/Middleware/ErrorHandlerMiddleware.php, line 96
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Http\Runner::run() - CORE/src/Http/Runner.php, line 51</pre></div></pre>latest-news-updates/the-low-productivity-trap-of-collateralised-lending-for-msmes-harsh-vardhan.html"/>
    <meta http-equiv="Content-Type" content="text/html; charset=utf-8"/>
    <link href="https://im4change.in/css/control.css" rel="stylesheet" type="text/css"
          media="all"/>
    <title>LATEST NEWS UPDATES | The low productivity trap of collateralised lending for MSMEs -Harsh Vardhan | Im4change.org</title>
    <meta name="description" content="-Ideas for India

The share of bank credit extended to MSMEs increased dramatically during the pandemic. In this post, Harsh Vardhan discusses the the government guarantee of bank loans as a possible driver of this growth. He outlines the current policy..."/>
    <script src="https://im4change.in/js/jquery-1.10.2.js"></script>
    <script type="text/javascript" src="https://im4change.in/js/jquery-migrate.min.js"></script>
    <script language="javascript" type="text/javascript">

        $(document).ready(function () {
            var img = $("img")[0]; // Get my img elem
            var pic_real_width, pic_real_height;
            $("<img/>") // Make in memory copy of image to avoid css issues
                .attr("src", $(img).attr("src"))
                .load(function () {
                    pic_real_width = this.width;   // Note: $(this).width() will not
                    pic_real_height = this.height; // work for in memory images.
                });
        });
    </script>
    <style type="text/css">
        @media screen {
            div.divFooter {
                display: block;
            }
        }

        @media print {
            .printbutton {
                display: none !important;
            }
        }
    </style>
</head>
<body>
<table cellpadding="0" cellspacing="0" border="0" width="98%" align="center">
    <tr>
        <td class="top_bg">
            <div class="divFooter">
                <img src="https://im4change.in/images/logo1.jpg" height="59" border="0"
                     alt="Resource centre on India's rural distress" style="padding-top:14px;"/>
            </div>

        </td>
    </tr>
    <tr>
        <td id="topspace">&nbsp;</td>
    </tr>

    <tr id="topspace">
        <td>&nbsp;</td>
    </tr>
    <tr>
        <td height="50" style="border-bottom:1px solid #000; padding-top:10px;" class="printbutton">
            <form><input type="button" value=" Print this page "
                         onclick="window.print();return false;"/></form>
        </td>
    </tr>

    <tr>
        <td width="100%">
            <h1 class="news_headlines" style="font-style:normal">
                <strong>The low productivity trap of collateralised lending for MSMEs -Harsh Vardhan</strong></h1>
        </td>
    </tr>
    <tr>
        <td width="100%" style="font-family:Arial, 'Segoe Script', 'Segoe UI', sans-serif, serif"><font size="3">
                <p style="text-align:justify">-Ideas for India</p><p style="text-align:justify"><em>The share of bank credit extended to MSMEs increased dramatically during the pandemic. In this post, Harsh Vardhan discusses the the government guarantee of bank loans as a possible driver of this growth. He outlines the current policy of providing credit against collateral, and the constraints MSMEs face while borrowing&ndash; which leads to decreased investment and firm productivity. He argues that the learnings from the credit guarantee scheme could be used to design a permanent guarantee scheme for MSME credit.</em></p><p style="text-align:justify">Micro, small, and medium enterprises (MSMEs) are an important part of the Indian economy. Roughly between 6 and 8 million in number, they are estimated to account for around 30% of GDP and employ more than 100 million. Despite this significant role in the economy, they have been chronically credit starved. Issues of flow of credit to MSMEs has been extensively discussed for a long time and it is fair to say that it remains a policy challenge.</p><p style="text-align:justify">During the Covid-19 pandemic, MSMEs experienced a dramatic growth in credit from the banking sector. Bank credit to MSMEs, which had remained stagnant for almost five years from 2015 onwards, grew by 15% in FY2020-21, and by another 31% in FY2021-22. It is important to keep in mind that the overall bank credit growth in these two years was around 8%. Figure 1 gives details of the annual growth in bank credit to MSMEs, and the share of MSME credit in total bank credit. The share of MSMEs in bank credit, which was stable at around 8.5% for the first half of the last decade, reduced by nearly half to 4.8% by FY 2019-20. To put this in perspective, the share of (unsecured) personal loans given by the banking system in 2020 was 8% of total loans.</p><p style="text-align:justify">Please <a href="https://www.ideasforindia.in/topics/money-finance/the-low-productivity-trap-of-collateralised-lending-for-msmes.html" title="https://www.ideasforindia.in/topics/money-finance/the-low-productivity-trap-of-collateralised-lending-for-msmes.html">click here</a> to read more.&nbsp;</p>               </font>
        </td>
    </tr>
    <tr>
        <td>&nbsp;</td>
    </tr>

    <tr>
        <td height="50" style="border-top:1px solid #000; border-bottom:1px solid #000;padding-top:10px;">
            <form><input type="button" value=" Print this page "
                         onclick="window.print();return false;"/></form>
        </td>
    </tr>
</table></body>
</html>'

}
$cookies = []
$values = [
	(int) 0 => 'text/html; charset=UTF-8'
]
$name = 'Content-Type'
$first = true
$value = 'text/html; charset=UTF-8'
header - [internal], line ??
Cake\Http\ResponseEmitter::emitHeaders() - CORE/src/Http/ResponseEmitter.php, line 181
Cake\Http\ResponseEmitter::emit() - CORE/src/Http/ResponseEmitter.php, line 55
Cake\Http\Server::emit() - CORE/src/Http/Server.php, line 141
[main] - ROOT/webroot/index.php, line 39

<head>

    <link rel="canonical" href="<?php echo Configure::read('SITE_URL'); ?><?php echo $urlPrefix;?><?php echo $article_current->category->slug; ?>/<?php echo $article_current->seo_url; ?>.html"/>

    <meta http-equiv="Content-Type" content="text/html; charset=utf-8"/>

$viewFile = '/home/brlfuser/public_html/src/Template/Layout/printlayout.ctp'
$dataForView = [
	'article_current' => object(App\Model\Entity\Article) {

		'id' => (int) 63979,
		'title' => 'The low productivity trap of collateralised lending for MSMEs -Harsh Vardhan',
		'subheading' => null,
		'description' => '<p style="text-align:justify">-Ideas for India</p>

<p style="text-align:justify"><em>The share of bank credit extended to MSMEs increased dramatically during the pandemic. In this post, Harsh Vardhan discusses the the government guarantee of bank loans as a possible driver of this growth. He outlines the current policy of providing credit against collateral, and the constraints MSMEs face while borrowing&ndash; which leads to decreased investment and firm productivity. He argues that the learnings from the credit guarantee scheme could be used to design a permanent guarantee scheme for MSME credit.</em></p>

<p style="text-align:justify">Micro, small, and medium enterprises (MSMEs) are an important part of the Indian economy. Roughly between 6 and 8 million in number, they are estimated to account for around 30% of GDP and employ more than 100 million. Despite this significant role in the economy, they have been chronically credit starved. Issues of flow of credit to MSMEs has been extensively discussed for a long time and it is fair to say that it remains a policy challenge.</p>

<p style="text-align:justify">During the Covid-19 pandemic, MSMEs experienced a dramatic growth in credit from the banking sector. Bank credit to MSMEs, which had remained stagnant for almost five years from 2015 onwards, grew by 15% in FY2020-21, and by another 31% in FY2021-22. It is important to keep in mind that the overall bank credit growth in these two years was around 8%. Figure 1 gives details of the annual growth in bank credit to MSMEs, and the share of MSME credit in total bank credit. The share of MSMEs in bank credit, which was stable at around 8.5% for the first half of the last decade, reduced by nearly half to 4.8% by FY 2019-20. To put this in perspective, the share of (unsecured) personal loans given by the banking system in 2020 was 8% of total loans.</p>

<p style="text-align:justify">Please <a href="https://www.ideasforindia.in/topics/money-finance/the-low-productivity-trap-of-collateralised-lending-for-msmes.html">click here</a> to read more.&nbsp;</p>
',
		'credit_writer' => 'Ideas for India, 7 October, 2022, https://www.ideasforindia.in/topics/money-finance/the-low-productivity-trap-of-collateralised-lending-for-msmes.html',
		'article_img' => '',
		'article_img_thumb' => '',
		'status' => (int) 1,
		'show_on_home' => (int) 1,
		'lang' => 'EN',
		'category_id' => (int) 16,
		'tag_keyword' => '',
		'seo_url' => 'the-low-productivity-trap-of-collateralised-lending-for-msmes-harsh-vardhan',
		'meta_title' => '',
		'meta_keywords' => '',
		'meta_description' => '',
		'noindex' => (int) 1,
		'publish_date' => object(Cake\I18n\FrozenDate) {},
		'most_visit_section_id' => null,
		'article_big_img' => null,
		'liveid' => null,
		'created' => object(Cake\I18n\FrozenTime) {},
		'modified' => object(Cake\I18n\FrozenTime) {},
		'edate' => '',
		'tags' => [
			[maximum depth reached]
		],
		'category' => object(App\Model\Entity\Category) {},
		'[new]' => false,
		'[accessible]' => [
			[maximum depth reached]
		],
		'[dirty]' => [[maximum depth reached]],
		'[original]' => [[maximum depth reached]],
		'[virtual]' => [[maximum depth reached]],
		'[hasErrors]' => false,
		'[errors]' => [[maximum depth reached]],
		'[invalid]' => [[maximum depth reached]],
		'[repository]' => 'Articles'
	
	},
	'articleid' => (int) 63979,
	'metaTitle' => 'LATEST NEWS UPDATES | The low productivity trap of collateralised lending for MSMEs -Harsh Vardhan',
	'metaKeywords' => 'Micro Small and Medium Enterprises,MSMEs,credit guarantee scheme,permanent guarantee scheme,collateralised credit,bank credit,bank loans',
	'metaDesc' => '-Ideas for India

The share of bank credit extended to MSMEs increased dramatically during the pandemic. In this post, Harsh Vardhan discusses the the government guarantee of bank loans as a possible driver of this growth. He outlines the current policy...',
	'disp' => '<p style="text-align:justify">-Ideas for India</p><p style="text-align:justify"><em>The share of bank credit extended to MSMEs increased dramatically during the pandemic. In this post, Harsh Vardhan discusses the the government guarantee of bank loans as a possible driver of this growth. He outlines the current policy of providing credit against collateral, and the constraints MSMEs face while borrowing&ndash; which leads to decreased investment and firm productivity. He argues that the learnings from the credit guarantee scheme could be used to design a permanent guarantee scheme for MSME credit.</em></p><p style="text-align:justify">Micro, small, and medium enterprises (MSMEs) are an important part of the Indian economy. Roughly between 6 and 8 million in number, they are estimated to account for around 30% of GDP and employ more than 100 million. Despite this significant role in the economy, they have been chronically credit starved. Issues of flow of credit to MSMEs has been extensively discussed for a long time and it is fair to say that it remains a policy challenge.</p><p style="text-align:justify">During the Covid-19 pandemic, MSMEs experienced a dramatic growth in credit from the banking sector. Bank credit to MSMEs, which had remained stagnant for almost five years from 2015 onwards, grew by 15% in FY2020-21, and by another 31% in FY2021-22. It is important to keep in mind that the overall bank credit growth in these two years was around 8%. Figure 1 gives details of the annual growth in bank credit to MSMEs, and the share of MSME credit in total bank credit. The share of MSMEs in bank credit, which was stable at around 8.5% for the first half of the last decade, reduced by nearly half to 4.8% by FY 2019-20. To put this in perspective, the share of (unsecured) personal loans given by the banking system in 2020 was 8% of total loans.</p><p style="text-align:justify">Please <a href="https://www.ideasforindia.in/topics/money-finance/the-low-productivity-trap-of-collateralised-lending-for-msmes.html" title="https://www.ideasforindia.in/topics/money-finance/the-low-productivity-trap-of-collateralised-lending-for-msmes.html">click here</a> to read more.&nbsp;</p>',
	'lang' => 'English',
	'SITE_URL' => 'https://im4change.in/',
	'site_title' => 'im4change',
	'adminprix' => 'admin'
]
$article_current = object(App\Model\Entity\Article) {

	'id' => (int) 63979,
	'title' => 'The low productivity trap of collateralised lending for MSMEs -Harsh Vardhan',
	'subheading' => null,
	'description' => '<p style="text-align:justify">-Ideas for India</p>

<p style="text-align:justify"><em>The share of bank credit extended to MSMEs increased dramatically during the pandemic. In this post, Harsh Vardhan discusses the the government guarantee of bank loans as a possible driver of this growth. He outlines the current policy of providing credit against collateral, and the constraints MSMEs face while borrowing&ndash; which leads to decreased investment and firm productivity. He argues that the learnings from the credit guarantee scheme could be used to design a permanent guarantee scheme for MSME credit.</em></p>

<p style="text-align:justify">Micro, small, and medium enterprises (MSMEs) are an important part of the Indian economy. Roughly between 6 and 8 million in number, they are estimated to account for around 30% of GDP and employ more than 100 million. Despite this significant role in the economy, they have been chronically credit starved. Issues of flow of credit to MSMEs has been extensively discussed for a long time and it is fair to say that it remains a policy challenge.</p>

<p style="text-align:justify">During the Covid-19 pandemic, MSMEs experienced a dramatic growth in credit from the banking sector. Bank credit to MSMEs, which had remained stagnant for almost five years from 2015 onwards, grew by 15% in FY2020-21, and by another 31% in FY2021-22. It is important to keep in mind that the overall bank credit growth in these two years was around 8%. Figure 1 gives details of the annual growth in bank credit to MSMEs, and the share of MSME credit in total bank credit. The share of MSMEs in bank credit, which was stable at around 8.5% for the first half of the last decade, reduced by nearly half to 4.8% by FY 2019-20. To put this in perspective, the share of (unsecured) personal loans given by the banking system in 2020 was 8% of total loans.</p>

<p style="text-align:justify">Please <a href="https://www.ideasforindia.in/topics/money-finance/the-low-productivity-trap-of-collateralised-lending-for-msmes.html">click here</a> to read more.&nbsp;</p>
',
	'credit_writer' => 'Ideas for India, 7 October, 2022, https://www.ideasforindia.in/topics/money-finance/the-low-productivity-trap-of-collateralised-lending-for-msmes.html',
	'article_img' => '',
	'article_img_thumb' => '',
	'status' => (int) 1,
	'show_on_home' => (int) 1,
	'lang' => 'EN',
	'category_id' => (int) 16,
	'tag_keyword' => '',
	'seo_url' => 'the-low-productivity-trap-of-collateralised-lending-for-msmes-harsh-vardhan',
	'meta_title' => '',
	'meta_keywords' => '',
	'meta_description' => '',
	'noindex' => (int) 1,
	'publish_date' => object(Cake\I18n\FrozenDate) {},
	'most_visit_section_id' => null,
	'article_big_img' => null,
	'liveid' => null,
	'created' => object(Cake\I18n\FrozenTime) {},
	'modified' => object(Cake\I18n\FrozenTime) {},
	'edate' => '',
	'tags' => [
		(int) 0 => object(Cake\ORM\Entity) {},
		(int) 1 => object(Cake\ORM\Entity) {},
		(int) 2 => object(Cake\ORM\Entity) {},
		(int) 3 => object(Cake\ORM\Entity) {},
		(int) 4 => object(Cake\ORM\Entity) {},
		(int) 5 => object(Cake\ORM\Entity) {},
		(int) 6 => object(Cake\ORM\Entity) {}
	],
	'category' => object(App\Model\Entity\Category) {},
	'[new]' => false,
	'[accessible]' => [
		'*' => true,
		'id' => false
	],
	'[dirty]' => [],
	'[original]' => [],
	'[virtual]' => [],
	'[hasErrors]' => false,
	'[errors]' => [],
	'[invalid]' => [],
	'[repository]' => 'Articles'

}
$articleid = (int) 63979
$metaTitle = 'LATEST NEWS UPDATES | The low productivity trap of collateralised lending for MSMEs -Harsh Vardhan'
$metaKeywords = 'Micro Small and Medium Enterprises,MSMEs,credit guarantee scheme,permanent guarantee scheme,collateralised credit,bank credit,bank loans'
$metaDesc = '-Ideas for India

The share of bank credit extended to MSMEs increased dramatically during the pandemic. In this post, Harsh Vardhan discusses the the government guarantee of bank loans as a possible driver of this growth. He outlines the current policy...'
$disp = '<p style="text-align:justify">-Ideas for India</p><p style="text-align:justify"><em>The share of bank credit extended to MSMEs increased dramatically during the pandemic. In this post, Harsh Vardhan discusses the the government guarantee of bank loans as a possible driver of this growth. He outlines the current policy of providing credit against collateral, and the constraints MSMEs face while borrowing&ndash; which leads to decreased investment and firm productivity. He argues that the learnings from the credit guarantee scheme could be used to design a permanent guarantee scheme for MSME credit.</em></p><p style="text-align:justify">Micro, small, and medium enterprises (MSMEs) are an important part of the Indian economy. Roughly between 6 and 8 million in number, they are estimated to account for around 30% of GDP and employ more than 100 million. Despite this significant role in the economy, they have been chronically credit starved. Issues of flow of credit to MSMEs has been extensively discussed for a long time and it is fair to say that it remains a policy challenge.</p><p style="text-align:justify">During the Covid-19 pandemic, MSMEs experienced a dramatic growth in credit from the banking sector. Bank credit to MSMEs, which had remained stagnant for almost five years from 2015 onwards, grew by 15% in FY2020-21, and by another 31% in FY2021-22. It is important to keep in mind that the overall bank credit growth in these two years was around 8%. Figure 1 gives details of the annual growth in bank credit to MSMEs, and the share of MSME credit in total bank credit. The share of MSMEs in bank credit, which was stable at around 8.5% for the first half of the last decade, reduced by nearly half to 4.8% by FY 2019-20. To put this in perspective, the share of (unsecured) personal loans given by the banking system in 2020 was 8% of total loans.</p><p style="text-align:justify">Please <a href="https://www.ideasforindia.in/topics/money-finance/the-low-productivity-trap-of-collateralised-lending-for-msmes.html" title="https://www.ideasforindia.in/topics/money-finance/the-low-productivity-trap-of-collateralised-lending-for-msmes.html">click here</a> to read more.&nbsp;</p>'
$lang = 'English'
$SITE_URL = 'https://im4change.in/'
$site_title = 'im4change'
$adminprix = 'admin'

include - APP/Template/Layout/printlayout.ctp, line 8
Cake\View\View::_evaluate() - CORE/src/View/View.php, line 1413
Cake\View\View::_render() - CORE/src/View/View.php, line 1374
Cake\View\View::renderLayout() - CORE/src/View/View.php, line 927
Cake\View\View::render() - CORE/src/View/View.php, line 885
Cake\Controller\Controller::render() - CORE/src/Controller/Controller.php, line 791
Cake\Http\ActionDispatcher::_invoke() - CORE/src/Http/ActionDispatcher.php, line 126
Cake\Http\ActionDispatcher::dispatch() - CORE/src/Http/ActionDispatcher.php, line 94
Cake\Http\BaseApplication::__invoke() - CORE/src/Http/BaseApplication.php, line 235
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\RoutingMiddleware::__invoke() - CORE/src/Routing/Middleware/RoutingMiddleware.php, line 162
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\AssetMiddleware::__invoke() - CORE/src/Routing/Middleware/AssetMiddleware.php, line 88
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Error\Middleware\ErrorHandlerMiddleware::__invoke() - CORE/src/Error/Middleware/ErrorHandlerMiddleware.php, line 96
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Http\Runner::run() - CORE/src/Http/Runner.php, line 51

The low productivity trap of collateralised lending for MSMEs -Harsh Vardhan

-Ideas for India The share of bank credit extended to MSMEs increased dramatically during the pandemic. In this post, Harsh Vardhan discusses the the government guarantee of bank loans as a possible driver of this growth. He outlines the current policy of providing credit against collateral, and the constraints MSMEs face while borrowing– which leads to decreased investment and firm productivity. He argues that the learnings from the credit guarantee scheme could be used to design a permanent guarantee scheme for MSME credit. Micro, small, and medium enterprises (MSMEs) are an important part of the Indian economy. Roughly between 6 and 8 million in number, they are estimated to account for around 30% of GDP and employ more than 100 million. Despite this significant role in the economy, they have been chronically credit starved. Issues of flow of credit to MSMEs has been extensively discussed for a long time and it is fair to say that it remains a policy challenge. During the Covid-19 pandemic, MSMEs experienced a dramatic growth in credit from the banking sector. Bank credit to MSMEs, which had remained stagnant for almost five years from 2015 onwards, grew by 15% in FY2020-21, and by another 31% in FY2021-22. It is important to keep in mind that the overall bank credit growth in these two years was around 8%. Figure 1 gives details of the annual growth in bank credit to MSMEs, and the share of MSME credit in total bank credit. The share of MSMEs in bank credit, which was stable at around 8.5% for the first half of the last decade, reduced by nearly half to 4.8% by FY 2019-20. To put this in perspective, the share of (unsecured) personal loans given by the banking system in 2020 was 8% of total loans. Please click here to read more.