No TReDS Transaction Recorded At 18% Interest Or Above: MoS MSME

New Delhi, Feb 10 (KNN) Minister of State for Micro, Small and Medium Enterprises, Shobha Karandlaje has said that no transaction on the Trade Receivables e-Discounting System (TReDS) platforms has been recorded with an interest rate of 18 percent or above.

Replying to a question in Rajya Sabha, the Minister stated that interest rates on TReDS are influenced by multiple factors, including the buyer's credit rating, category, invoice size and tenure, past payment behaviour, liquidity conditions, cost of funds for financiers, and the level of competition in bidding.

She said that interest rates are finalised through a competitive bidding process among financiers and are primarily determined by the credit strength and risk profile of the buyer. Higher competition among financiers generally results in lower interest rates.

Formal Credit Access Among MSMEs

Referring to inputs from the Department of Financial Services (DFS), the Minister said that a survey conducted by SIDBI during FY 2025 revealed that 75 percent of MSME respondents reported availing formal credit. Around 8 percent relied exclusively on informal credit sources, while 17 percent had not availed any form of credit.

The survey was conducted on a sample basis covering 2,097 MSMEs across 19 sectors nationwide, as per the report titled Understanding Indian MSME Sector- Progress and Challenges (May 2025).

DFS further informed that, according to RBI data, total advances by Scheduled Commercial Banks (SCBs) to the MSME sector stood at Rs 35,83,337.55 crore as on September 30, 2025. Gross Non-Performing Assets (NPAs) in the sector amounted to Rs 1,17,186.88 crore during the current financial year.

Udyam Assist Portal for Informal Micro Enterprises

The Minister also stated that the Udyam Assist Portal (UAP) has been introduced to formalise Informal Micro Enterprises (IMEs) that are exempt from GST registration. The portal aims to bring such enterprises under the formal ambit and enable them to access institutional benefits and credit support.

She noted that the initiative seeks to integrate small informal businesses into the formal financial ecosystem.

(KNN Bureau)