Empowering Kirana Stores in Mangalore: The Impact of Digital Lending Platforms on Financial Growth and Sustainability

Kirana stores are the backbones for the retail sectors in India. They serve the daily needs of the local communities through these store owners in a primary form. Most Kirana store owners in Mangalore do not have access to formal credit, which is a factor leading to various constraints about expansion, stock in hand, and competition against organized retail chains. In this regard, this paper analyses the effects of digital lending on the financial growth and sustainability of Kirana stores in Mangalore. The research interrogates the level to which FinTech innovations such as digital credit solutions, Buy Now Pay Later schemes, and microfinance reduce the credit gap for small retailers. A mixed-method approach has been used whereby data were collected from Kirana store owners in regard to awareness, adoption, and experience with digital lending services. Findings are that digital lending platforms have greatly improved the availability of working capital, increased the efficiency of operation, and scaled up the businesses of store owners. However, there are some challenges like lack of digital literacy, high-interest rates, and trust issues. The paper insists that financial institutions and policymakers have to design tailor-made credit products, access, and enhance financial literacy for the Kirana store owners. This digital lending infrastructure can be a push for the unorganized retail sector of Mangalore to get into financial inclusion and economic resilience.