This interview explains how artificial intelligence and digital infrastructure are transforming India’s MSME lending sector. Financial institutions are moving away from traditional collateral-based lending and using alternative data, such as UPI transactions and digital activity, to assess creditworthiness more efficiently. PSL Association of India is helping drive this change by promoting ethical AI practices and supporting the adoption of the Open Credit Enablement Network (OCEN). The interview also highlights challenges like data fragmentation and limited digital literacy among small businesses. However, initiatives such as the India Stack are improving financial visibility and access to credit. Overall, it emphasizes collaboration between fintech companies, policymakers, and financial institutions to create a more inclusive and transparent lending ecosystem.