Vol. 11, Issue 3, Part A (2025)

Abstract
Micro, Small, and Medium Enterprises (MSMEs) play a pivotal role in India's economy, contributing significantly to employment, industrial output, and exports. However, despite their importance, MSMEs face substantial challenges in accessing formal financing, which restricts their growth and sustainability. Scheduled Commercial Banks (SCBs) are central to providing financial support to these businesses. This review explores the financing landscape for MSMEs in India, highlighting government initiatives and the role of SCBs in facilitating credit access. Several policies, including the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) and the MUDRA scheme, aim to improve credit flow to MSMEs. Despite these efforts, MSMEs continue to struggle with high borrowing costs, collateral requirements, and limited access to formal credit. The review also discusses the emerging role of digital lending and fintech platforms in addressing these challenges. Overall, while substantial progress has been made in MSME financing, more targeted interventions and support mechanisms are required to enhance their growth and reduce financial barriers.