Under the Tamil Nadu Rural Transformation Project (TNRTP), the Government of Tamil Nadu was keen to set up a specialized Financing Facility to support enterprises in a wide range of sectors, including start-ups, women-led enterprises, and youth-led enterprises. Other types of MSMEs also require improved access to finance. The project sought exploring options and need for financing instruments that would be required to support its MSME beneficiaries, including those indicated earlier. This study has been commissioned to initiated a diagnostic study broadly to understand the scope for financial instruments among the rural economy.
Primary survey of 353 rural MSMEs of different typologies Data analysis to assess the needs and availability of financial instruments in the target population Market segmentation from the point of view of needs of financial services Secondary research MSME credit guarantee funds and loan schemes offered by central and state government Recommendations on structuring of financing facility within TNRTP.