Mumbai: From January 2026, a PSB alliance digital platform for lending to small businesses will start operating on a large scale, opening a new avenue for MSME financing. This platform will allow any fintech or entity that serves MSMEs, including dealers, to plug-in and provide a financing interface for small businesses. On the other hand, 12 public sector banks will provide digital loans to these enterprises.Speaking to TOI, PSB Exchange CEO Sorabh Dhawan said the platform aims to disburse loans worth Rs 3 lakh crore by 2030.The PSB Exchange is designed as a multi-lending system connecting corporates and their channel partners with banks, NBFCs and Fintechs. “Created by the PSB Alliance in partnership with Vfin Solutions, it enables digital credit delivery across the country. This is the first time India’s largest lenders are coming together to serve MSMEs,” Dhawan said.He said, “I have spent most of my 18-year banking career underwriting and financing MSMEs, and I have seen first-hand the strength and potential of this segment. Supply chain finance can unlock that potential at scale, and I believe the PSB exchange will play a decisive role in transforming access to working capital.”He said that currently only 14-15% MSMEs have access to formal financing. He said, “We aim to expand this coverage and make capital available at competitive rates. By bringing together fintechs, corporates, dealers, distributors, suppliers and lenders on one platform, we ensure that MSMEs can access funding at rates as low as 10% instead of relying on high-cost loans.”Dhawan said the platform has around 70 sourcing partners and can be used by around 9,900 fintechs in the country without having to integrate with each bank individually.
