Only 14% of Indian MSMEs Access Formal Credit Despite Digital Finance Growth
A new report reveals that only 14% of India's small and medium businesses are able to access formal institutional credit, despite the country's rapid digital payments expansion. The unmet financing need for MSMEs could exceed Rs 50 lakh crore, posing a significant barrier to broader economic growth. While ownership of financial accounts among small businesses is relatively high, formal credit access and insurance uptake remain well below global benchmarks. Experts point to critical financial inclusion gaps that continue to leave millions of small enterprises underserved. Policy reforms are being called for to improve credit access and build economic resilience among MSMEs.
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