How data science is redefining lending for MSMEs in India

Micro, small and medium enterprises, or MSMEs have been consistent in driving India’s economic growth and creating millions of jobs. Their contribution is only increasing. Yet, most of these MSMEs face a significant challenge in accessing timely and affordable credit, a hurdle that can stifle their growth and sustenance. While the proliferation of data coupled with advanced technologies has brought in transformative changes in many industries; can data science redefine how NBFCs interact with MSMEs? With a plethora of possible use cases, data science is becoming a transformative force for MSME lending. By leveraging data science capabilities, NBFCs are now addressing the core issues of accessibility, inclusivity, and integrity, making the lending ecosystem more dynamic and customer-centric.