India’s Credit Puzzle Still Has Missing Pieces With Bank Accounts Open, But Borrowers Still Knock on the Moneylender’s Door

India’s financial inclusion journey has made remarkable strides over the past decade, with over 55 crore Jan Dhan accounts opened and digital transactions surging. Yet, a troubling paradox persists: while formal banking access has grown, informal borrowing remains dominant, especially among low-income households, self-employed entrepreneurs, and rural communities.

 

The Credit Divide: Key Findings

Regional Disparities in Credit Access

Why Formal Credit Isn’t Replacing Informal Lending

Policy Recommendations to Bridge the Gap

Sources: Moneycontrol, Zee Business, India Today, Economic Times