MSME digital lending may rise up to 15-fold, hit Rs 7 trn by 2023: Reports

Roughly 40 per cent of India's MSME lending is in the informal sector, according to BCG, Omidyar Network reports

There are between 55 and 60 million micro, small, and medium-size enterprises (MSMEs) in the country. A big barrier to growth is the lack of access to formal credit—today, roughly 40 per cent of lending is done through the informal sector, where interest rates are at least twice as high as the formal market. This landscape is set for rapid change, with digital lending poised to disrupt the status quo. By 2023, MSME digital lending has the potential to increase between 10 and 15-fold to reach ~6-7 trillion ($80-100 billion) in annual disbursements.