Despite India’s micro, small and medium enterprises (MSMEs) contributing about a third of the country’s gross domestic product and employing over 110 million people, they struggle to access and afford credit. This credit gap is estimated to be as large as ₹20-25 trillion. MSMEs are overlooked by traditional lenders such as banks because they lack collateral and are unable to produce audited financial data such as balance sheets, income statements or credits in a current account, which renders them unable to prove their creditworthiness. Often, this leads to a vicious debt cycle created by borrowing from informal credit channels, including acquaintances and money lenders, at interest rates that are sometimes twice as high as the formal market’s. This severely hurts the growth of these small businesses and the socioeconomic development of the local communities these businesses are part of.