Loans4SME

Loans4SME is a proposed technology-driven peer-to-peer (P2P) lending platform designed to provide debt financing for small and medium enterprises (SMEs) focusing on renewable energy and energy efficiency in India, bypassing traditional banking barriers such as collateral and profitability requirements.

• SMEs in India require USD 44 billion in debt financing by 2022 to utilize renewable energy and energy efficiency opportunities. Traditional bank lending is often inaccessible to newer, smaller entities because banks typically require at least three years of profitability and real estate collateral.
• Loans4SME, to be launched by Aurus Lending Solutions, is a curated P2P marketplace connecting SMEs with debt providers including corporate treasuries, family investment offices, and high net worth individuals. It aims to be the first P2P lending facility in India specifically for SMEs in the energy efficiency and renewable energy sectors.
• By 2022, Loans4SME has the potential to mobilize USD 2.2 billion in debt financing, comprising USD 590 million for solar rooftop, USD 200 million for energy efficiency, and USD 141 billion for energy, procurement, and construction (EPC) financing. This could result in the addition of 800 MW of solar rooftop capacity.
• Based on solar rooftop installation potential for SMEs, Loans4SME could reduce annual CO2 emissions by approximately 1107 mMT, SOx emissions by 3681 mMT, and NOx emissions by 5146 mMT by 2022.
• The facility requires USD 460,000 in public finance to commission, offering a private finance leverage ratio of 1:234. The platform is described as highly actionable, with no regulatory barriers and the ability to begin operations in less than ten months.

APA

Climate Policy Initiative (n.d.). Loans4SME. https://www.climatepolicyinitiative.org/wp-content/uploads/2020/07/Loans4SME_Instrument-Overview.pdf

Chicago

Climate Policy Initiative. Loans4SME. n.d. https://www.climatepolicyinitiative.org/wp-content/uploads/2020/07/Loans4SME_Instrument-Overview.pdf.

Wikipedia

{{cite report |author=Climate Policy Initiative |title=Loans4SME |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2020/07/Loans4SME_Instrument-Overview.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatepolicyinitiativendloans4sme, author = {{Climate Policy Initiative}}, title = {{Loans4SME}}, institution = {Climate Policy Initiative}, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2020/07/Loans4SME_Instrument-Overview.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }