Summary
Despite a generation of formalisation, India's MSME credit gap remains the binding constraint on the country's enterprise base.
The 2025 banking reforms reshaped the rails of credit delivery — but the last mile to India's MSMEs still resists scale.
This essay examines the post-reform landscape: where collateral-free flow has improved, where digital credit is finally reaching first-time borrowers, and where structural gaps persist.
We close with a set of practical recommendations for lenders, regulators and policy makers operating across the next three years.