'Digitization and formalization in the industry brought paradigm shift in MSME borrowing pattern'

Credit and Finance for MSMEs: Today, the digital ecosystem is signifying its ability to overcome fundamental barriers to the progression of finance for inclusive and sustainable development. New-age banking solutions have evolved from the conventional brick and motor branches. From neobanks, and e-wallets, to buy now pay later (BNPL) and no-cost EMIs, there is a stark transformation across the economy's spending, lending, and borrowing patterns. The government has adopted a cognizant approach to lead the country towards a digital economy. The new wave has bought a paradigm shift in the MSME borrowing pattern as they adapt to the digital ecosystem.