Microenterprises form the backbone of rural India's economic environment, but their access to formal financial sources remains limited due to inadequate documentation, low financial literacy, and credit risks. In the absence of formal sources of credit, these enterprises are compelled to turn to informal credit sources such as moneylenders, local traders, and friends and family to meet their financial needs. This research paper explores the various challenges microenterprises face in acquiring required credit, including high interest rates and lack of security. An important factor is the problem of rent-seeking behavior expressed by various sources of credit, from individuals to local authorities, which increases borrowing costs and increases inequities. Using firsthandexperiences, case studies, and data analysis, this study identifies patterns of firm growth and unequal growth that display credit access in rural informal markets. The findings highlight the urgent need for government interventions and the expansion of accessible and affordable financial services specific to the unique challenges faced by rural microenterprises.