Just 14% of MSMEs get formal loans despite India’s digital finance boom: Report

 Despite India’s advanced digital payments, millions of small businesses struggle for formal finance, with only 14% accessing institutional credit. A significant credit gap, potentially exceeding Rs 50 lakh crore, hinders economic growth. While financial account ownership is high, formal credit access and insurance penetration lag global averages, highlighting critical inclusion gaps requiring policy reforms for broader economic participation and resilience. Despite India’s advanced digital payments, millions of small businesses struggle for formal finance, with only 14% accessing institutional credit. A significant credit gap, potentially exceeding Rs 50 lakh crore, hinders economic growth. While financial account ownership is high, formal credit access and insurance penetration lag global averages, highlighting critical inclusion gaps requiring policy reforms for broader economic participation and resilience.