India’s entrepreneurial landscape is seeing the rise of emerging business owners who are reshaping industries with fresh ideas. Yet, many find themselves at a standstill when it comes to credit access. The reason is limited financial literacy, which makes navigating formal lending systems a challenge.
Why Financial Literacy Matters for MSMEs
Accounting for nearly a third of India’s GDP, the MSME sector contribution to GDP is both undeniable and transformative. With over 110 million jobs, employment in MSMEs plays a vital role in sustaining livelihoods across the country. But despite their importance, most entrepreneurs lack awareness of how to build strong credit profiles or manage cash flow effectively.
This gap often pushes small borrowers into costly informal lending channels. For women-led enterprises, the barriers are even higher, from limited networks to lack of collateral, making access to formal credit for MSMEs a distant goal. The outcome is predictable: promising business ideas that struggle to scale.
UGRO Capital’s Initiatives During Financial Literacy Week
Recognising this challenge, UGRO Capital launched the #TogetherWeGRO initiative to not only provide capital but also nurture financial confidence.
Platforms like the Women’s Day Special Edition of UGRO Talks, where women leaders share their journeys, and dedicated WhatsApp communities ensure continued engagement and guidance. It’s an approach where financial education is relatable, consistent, and accessible.
Technology as an Enabler
Financial literacy no longer needs to be limited to lengthy seminars. Digital platforms are now making the process engaging, with interactive modules and gamified learning.
AI-driven tools personalise learning paths, highlighting areas where entrepreneurs need the most support. Features such as real-time credit monitoring, payment reminders, and transparent scoring systems transform credit from a source of uncertainty into a tool for planning. Equally impactful are video platforms featuring relatable success stories. Seeing entrepreneurs who have walked the same path makes complex financial concepts easier to understand and apply.
How UGRO Capital Empowered First-Time Entrepreneurs to Scale Their Businesses
Take the story of Puja Agarwal from Kolkata. With no prior work experience, she built SJ Fabricss into a thriving enterprise. UGRO Capital’s continued support, through a third loan of ₹40 lakh, enabled her to secure raw materials and scale operations, strengthening the business for the long run.
For Mrinal Paul in Delhi, UGRO’s machinery loans of ₹15 lakh and ₹23 lakh provided seamless financing after years of difficulties with other lenders. The result: higher earnings and smoother business growth.
Equally inspiring is Harsh Patel from Baroda. After losing ₹3 lakh early in his career, he started a plastic packaging business in 2018. UGRO’s quick ₹25 lakh loan approval enabled rapid factory setup and distribution expansion. Today, his business and lifestyle reflect the strength that comes from resilience and the right financial support.
Building Tomorrow’s Success
Credit confidence is not just about individual wins; it’s about shaping an ecosystem where entrepreneurs approach formal credit for MSMEs with clarity rather than hesitation. As financial institutions, government agencies, and technology providers work together, advanced financial topics such as business valuation are becoming accessible to small business owners.
For women-led enterprises, improved financial education opens doors to significant untapped potential. Emerging tools like AI-powered advisors and blockchain-based credit scoring are bringing transparency and inclusivity to financial services.
The vision is clear: credit should evolve from being a point of stress to becoming a strategic instrument for growth. With the MSME sector contribution to GDP and employment in MSMEs powering economic expansion, financial literacy is no longer optional, it is fundamental infrastructure for India’s entrepreneurial future. When credit systems empower rather than exclude, communities thrive alongside businesses.
