 "graph")
Adoption of digital transactions in a big way by micro and small enterprises (MSEs) can help plug the information gaps that limit their access to formal credit. Traditionally, banks make lending decisions based on the borrowers’ financials and collaterals. However, since MSEs find both collaterals and credible financial information hard to furnish, their digital footprint can be an alternative for the lenders to capture more reliable information on them.
Acknowledging this, the latest Union Budget has stated that the government will encourage SIDBI to refinance credit institutions that provide unsecured loans at reasonable interest rates to borrowers based on their transaction
