AI-BASED CREDIT SCORING AND FINANCIAL ACCESS FOR MSMES: EVIDENCE FROM SECONDARY DATA

Micro, Small, and Medium Enterprises (MSMEs) play a crucial role in economic growth, employment generation, and innovation, particularly in emerging economies. Despite their importance, access to formal credit remains a persistent challenge for MSMEs due to information asymmetry, lack of collateral, and limited credit histories. In recent years, Artificial Intelligence (AI)-based credit scoring models have emerged as a transformative solution to these challenges. This article, based on secondary data from academic literature, industry reports, and policy documents, examines how AI-driven credit scoring enhances financial access for MSMEs. The study highlights the mechanisms, benefits, risks, and policy implications of AI-based credit assessment, concluding that while AI significantly improves credit inclusion, responsible adoption and regulatory oversight are essential to ensure fairness and sustainability.