Stronger creditor rights tend to have a higher number of loan accounts per adult population and also higher rates of private credit to GDP. There is a need for adequate and reliable credit information mechanism, such as an MSME credit bureau, that serves the needs of both the MSMEs’ and the potential lenders’.
Transparency shall facilitate them in obtaining finances, getting favourable contracts and improving their business prospects. A World Bank report stated that a good credit information infrastructure can contribute significantly towards assisting MSMEs’ access to capital.