ONLY 14% OF INDIA’S MSMES HAVE ACCESS TO FORMAL CREDIT DESPITE DIGITAL FINANCE BOOM

India’s MSME financing gap remains large despite rapid digital finance adoption, with only 14% of businesses accessing formal credit, according to Deloitte. The report highlights that limited credit penetration continues to constrain expansion, jobs and productivity even as digital lending and fintech ecosystems scale across the country. Following players will be benefited the most among others if India succeeds in increasing formal credit penetration among MSMEs from the current 14% as it would significantly expand the addressable lending market while boosting fee income and loan growth: 1. $UGROCAP : Pure-play MSME lender using data-driven underwriting. Among the most direct listed beneficiaries if MSME credit penetration rises. 2. $MUTHOOTFIN: Can expand formal lending to small businesses through gold-backed business loans. 3. $BAJFINANCE : Large MSME and business loan franchise. Strong presence in unsecured and working capital lending. 4. $CHOLAFIN : Growing SME financing portfolio, particularly in Tier-2 and Tier-3 markets.