By:- Kaushal Sampat, President - Vayana
MSMEs are integral to India's economy, driving production, employment, exports, and the day-to-day flow of commerce. But many capable businesses have remained outside the formal credit system because traditional lending has not always reflected the realities of how they operate. Digital Public Infrastructure is helping change that. Consent-based data sharing, digital transaction records, and ecosystem data are enabling lenders to understand businesses through their commercial activity rather than collateral alone. As credit decisions become more data-driven, more deserving MSMEs can build financial credibility through their operations, expanding access to formal finance while strengthening the quality of lending.
