New Delhi, May 14 -- Alternative finances and digital lending are gaining pace for credits to the Micro, Small and Medium Enterprise (MSME) sector, shows data from a survey by the Small Industries Development Bank of India (SIDBI).

Fintechs, banks and other lending institutions are actively promoting digital awareness and building infrastructure to bring digital lending to all consumers.

Though traditional forms of lending are prevalent for MSMEs, digital lending has gained significant traction in recent years. From 1 cent loans through digital means in 2017 to a staggering projected 17 per cent in the financial year 2026.

"Although digital lending is at a nascent stage, it is expected to grow faster with the government and financial i...