BBA (Hons) Student Publishes Research on Closing India’s MSME Credit Gap

India’s digital lending ecosystem could play a significant role in addressing the persistent credit gap faced by micro, small and medium enterprises (MSMEs). But for digital lending to expand access to formal credit sustainably, it will require robust frameworks for data protection, governance and interoperability across financial systems.

Honey Dhanecha, BBA (Hons) Class of 2027, explores this challenge in her research paper, “Digital Lending: The Future of MSME Credit in India,” coauthored with Professor Rahul Rao. The paper examines how India’s digital public infrastructure is reshaping access to credit for MSMEs and how digital lending could make formal credit more accessible.

Drawing on developments in India’s digital lending ecosystem between 2016 and 2025, the study finds that digital lending can help address information asymmetry and lower lending costs, potentially making formal credit more accessible to underserved businesses. At the same time, the research highlights the need for structural reforms to strengthen the regulatory and technological foundations of digital lending.

The paper has been published in Artha: Journal of Business and Finance, a peer-reviewed, open-access journal published by the Financial Research and Trading Laboratory at IIM Calcutta.

The publication reflects the opportunities available to undergraduate students to engage in scholarly research alongside faculty and contribute to conversations around pressing economic and societal challenges. At Ahmedabad University, such experiences enable students to build academic pathways that extend beyond the classroom and engage with real-world questions.

Read the paper: Digital Lending: The Future of MSME Credit in India — Artha Journal