Small businesses in India have long struggled to gain access to formal credit. Ever before the COVID-19 pandemic, a staggering 92 percent of them lacked such access. India’s micro, small, and medium enterprises (MSMEs) sector faces a significant credit gap–between $250 billion and $300 billion. This is because credit access is skewed toward larger firms and those with tangible assets. That leaves MSMEs and individuals without collateral struggling to obtain loans. Even if they find a lender, the loan terms and conditions are often harsh or fail to meet their specific needs.