Artificial Intelligence Enabled Loan Processing – A Boon for Micro Entrepreneurs

Abstract

Microbusiness entrepreneurs encounter substantial difficulties in obtaining timely and effective financing to grow their companies in the rapidly changing financial landscape. Traditional loan processes are frequently laborious and time-consuming, which limits small businesses' potential for expansion. This study explores how artificial intelligence (AI) has the potential to revolutionise the loan environment for microbusiness owners. AI streamlines loan processing to provide a quicker, more efficient, and fairer method, empowering entrepreneurs to take opportunities and succeed. The study shows how processing gets quicker, more accurate, and inclusive loan by using secondary data sources. Diverse pieces of literature highlight the benefits of AI for credit risk assessment and transparency. Despite difficulties like implementation expenses, AI provides unmatched advantages including less paperwork, greater access, and enhanced fraud detection. Human monitoring ensures moral AI implementation, finding a balance that changes the financial environment for microentrepreneurs.