Developments and Challenges of E Financing in SME Sector

Abstract

This paper would bring out the outlining importance of Small and Medium Enterprises (SMEs) in a developing country like India, the distinctive profile and needs of an SME customer and the unique challenges in SME banking. Against this backdrop the paper would then highlight the weaknesses in traditional lending models followed by Indian banks. The paper would then emphasize how e-finance is a window to a new opportunity for SME customers. A brief perspective of the peculiarity found in the Asian and Indian business environment would be included to underline the complexity and therefore the added difficulties faced by Banks to facilitate e-finance models for SME customers.