Webinar Report: "Why, When and How: Unsecured Funding for MSMEs" — Held on 23 August 2025

1. Objective of the Webinar

The purpose of the webinar was to create awareness among MSMEs about the importance of unsecured loans, their correct usage, and how they can empower small businesses to grow without the burden of collateral. Many MSMEs face financial bottlenecks due to lack of security or assets, and this session aimed to provide clarity on the right approach to unsecured funding.

2. Speakers & Convener

• Mr. Ashok Jha – Founder / MSME Expert & Ex-Banker
• CA H. K. Gupta – Chartered Accountant & Financial Advisor
• Convener: CA Sunil Aggarwal – Chartered Accountant & MSME Growth Facilitator

3. Key Highlights of the Session

Opening Remarks by CA Sunil Aggarwal

• Welcomed all participants and introduced the objective of the webinar.
• Highlighted the need for easy funding solutions for MSMEs and the role of unsecured loans in bridging financial gaps.

Insights by Mr. Ashok Jha

• Explained the Why of unsecured loans: quick access, no collateral, and growth opportunities.
• Shared ground realities faced by MSMEs when banks ask for security and how unsecured funding opens new doors.
• Emphasized financial discipline in repayment to avoid a debt trap.
• Focused on When and How unsecured loans should be taken.

Insights by CA H. K. Gupta

• Stressed the importance of proper documentation (GST, ITR, bank statements).
• Explained CIBIL score impact and how NBFCs/fintechs are playing a key role.
• Provided practical loan structuring tips to align borrowing with business needs.
• Outlined the role of GRO-MSME as a Growth Partner of Indian MSMEs.

4. Case Study Shared

Failure Case

An MSME took multiple small loans without repayment planning and fell into a debt trap.

Success Case

A manufacturing MSME took an unsecured loan for working capital, delivered large orders, repaid on time, and improved creditworthiness.

5. Key Takeaways for Participants

• Unsecured loans are a powerful tool but must be used wisely.
• MSMEs should avoid over-borrowing and maintain financial discipline.
• Documentation and credit history are the keys to faster approvals.
• Right funding at the right time can turn opportunities into long-term success.

Learn more about our MSME funding advisory services or become a GRO-MSME consultant.

6. Participant Engagement

• Registrations: 77
• Live attendees: 50
• Participants asked questions about interest rates, repayment structures, and eligibility criteria.
• Polls were conducted to understand challenges faced by MSMEs in accessing credit.

7. Conclusion

"Unsecured funding should be seen as a growth enabler, not a burden. The right loan, at the right time, in the right amount, is the key to MSME success."

8. Way Forward

• GRO-MSME will continue conducting knowledge sessions on financing, digital tools, and growth strategies for MSMEs.
• A resource guide/checklist on unsecured loans will be shared with participants.
• Follow-up workshops on credit readiness and financial planning are planned. Join the GRO-MSME Club to stay updated.