The lack of adequate access to funding is a major obstacle to the growth of the vital Small and Medium-Sized Indian Enterprises (SME) industry. This paper looks at major issues in the financing of Indian SMEs, such as information asymmetry of banking firms, as well as the effectiveness of measures such as credit ratings for SMEs. It also examines the importance of credit rating and risk assessment for the credit rating of SMEs to address the information problem or lending.
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