Micro, Small and Medium Enterprises (MSMEs) hold great importance in the development of the Indian economy. Loan facilities are a necessity in expanding the micro, small, and medium-sized enterprises. For MSME, a change in the economy to a greener one is vital in developing the economy sustainably. Among the most pivotal enablers of financial inclusion, loan availability, and operational efficiency is that of financial technology, otherwise known as fintech. The existing literature body in the present study is reviewed in order to identify the relationship that might exist between the sustainability of financial technology and its development. With the adoption of pro-environment financial technology effectively, MSMEs can promote a green economy by enhancing tailored financial solutions. The adoption of fintech reduces carbon footprints. Fintech provides environment-friendly solutions through innovations and data analytics. This helps in enhancing transparency and sustainable practices in the MSME sector. This study also addresses the challenges and barriers in the adoption of financial technology by MSMEs such as the digital literacy gap, regulatory compliance and issues with cash flow management. The study has implications for researchers, people in the MSME sector, the financial sector and policymakers. It suggests that by addressing the digital literacy gap, the performance of MSMEs can be significantly enhanced on the path of sustainable development towards a green Indian economy.