Financing Preferences in MSMEs: A Secondary Data Perspective from Maharashtra

This study draws on secondary empirical data (2017–2025) to explore financing preferences among MSMEs in Maharashtra, India's leading industrial state. It analyzes the dominance of internal funds and short-term debt, sectoral variations, and the impact of government schemes such as CGTMSE on formal credit access. Trends indicate 60–70% reliance on internal sources, with fintech and scheme-driven growth improving urban access by 15–25%. The paper discusses how balanced financing mixes reduce leverage risks while highlighting rural-urban and owner-demographic disparities. Recommendations include streamlined approvals and expanded fintech outreach to support sustainable growth in Maharashtra's diverse MSME ecosystem.