By:-Mr. Rohit Arora, CEO & Co-Founder, Biz2X and Biz2Credit.

“As we enter 2026, AI is reshaping how credit reaches MSMEs and SMEs in India. Agentic AI is enabling lenders to make more precise, real-time underwriting and risk decisions by analysing cash flows, transaction patterns, and operational performance, while conversational AI improves borrower engagement and reduces friction across applications and servicing. These AI-driven capabilities, combined with robust digital infrastructure, regulatory guardrails, and data aggregation, are helping lenders align credit more closely with the actual economic activity of small businesses.

Strong demand persists, yet the credit gap remains significant. Closing it will require lending models that are integrated, precise, and aligned with how businesses operate. The focus must be on disciplined inclusion, using technology to expand access while maintaining credit quality, strengthening MSME balance sheets, and supporting sustainable economic growth.”