Formal credit use has improved, with 54.5% of rural households borrowing only from formal sources. Yet, 22% still depend solely on high-cost informal loans
Despite better access to banks, many still rely on informal lenders or family. The flexibility of such credit often outweighs its high cost and risk
Rural bank branches have grown by over 23,000 since 2010. But many still turn to moneylenders, showing that infrastructure alone doesn’t ensure inclusion
Women’s credit demand is rising fast, especially in rural areas. Yet, gaps in documents, guarantors, and collateral block many from accessing formal finance
Expanding credit means more than meeting targets. Small, short-term loans tailored to rural needs are key to reducing reliance on informal sources
Bridging the rural credit gap needs tech, trust, and education. Financial access must be affordable, usable, and empowering—only then can inclusion be real