Access to traditional bank financing is often not available due to lack of collateral or due to limited operating history. Traditional banks in India are reluctant to lend to this segment because credit appraisal is difficult, reliable financial information is not available and smaller loans are less profitable. There have been some encouraging recent developments in the area of SME debt finance. Some new generation Non-Banking Finance Companies are beginning to fill the void left by banks. These NBFCs leverage modern IT systems and make credit appraisal decisions based on deep understanding of business verticals and local markets. The upcoming...