Abstract

Digital microfinance has revolutionized microcredit delivery and expanded financial inclusion in emerging economies, where micro, small, and medium enterprises (MSMEs) are vital for employment and income generation. This study synthesizes literature on digital microcredit disbursement and its impact on MSME growth, focusing on business turnover as a mediating mechanism. Using a Systematic Literature Review (SLR) approach aligned with the PRISMA framework, the analysis covers 25 peer-reviewed articles (2020–2025), including international (Scopus-indexed) and national (Sinta-indexed) sources. Three principal themes emerge: digital microfinance effectiveness depends on accessibility, transactional efficiency, and digital literacy; business turnover mediates credit utilization into revenue and profitability growth; and financial innovation with prudent risk management ensures loan sustainability. The study integrates digital finance, innovation, and growth theories to explain how microcredit influences MSME performance through turnover mediation. Findings provide practical insights for policymakers and financial institutions to refine microcredit strategies, enhance borrower capacity, and strengthen digital monitoring systems. The review also highlights the need for comparative research on contextual and behavioral factors affecting microcredit effectiveness.