The world is facing changes and challenges day by day. So according to these changes new methods of credit facilities should be dealt with. Also the potential of the World Bank in helping MSMEs are also not tapped fully in India. Along with this RBI has come forward with the idea of co-origination where the NBFCs and banks share the percentage of the loan provided. These are quite innovative concepts which can alleviate the problems plaguing the MSMEs. The World Bank's new concept of collateralization of loan facilities can help the MSMEs which are inaccessible to the formal credit facilities of the commercial banks in India. Also the role of confederations in the MSME sector is indispensable. Since the MSMEs fall under mainly the informal sector, the confederations are essential for the formalization of MSMEs, reducing information asymmetry thereby stimulating the growth of MSMEs. So the research led to the insights that 1) crowd funding may replace traditional methods of financing.2) Moving towards collateral loans can increase the entrepreneurship in the country.3) Collaboration of NBFCs and Commercial banks will lead to financial inclusion and will increase women entrepreneurship in the country.4) The rate of ‘confederating’ will decrease the rate of information asymmetry of MSMEs
Collateral loans, crowd funding, co-origination, innovation, confederation
