India MSME Credit Growth Report
Analysis based on 6 articles · First reported Dec 08, 2025 · Last updated Dec 08, 2025
The positive report on India's MSME credit growth and improved risk profiles indicates a healthy lending environment, which could boost investor confidence in India's financial sector and small business economy. The shift towards larger ticket-size lending and maturing customer profiles suggests a more stable and profitable outlook for lenders, potentially attracting more investment into the sector.
CRIF High Mark released its MSMEx Spotlight Report, revealing that India's Micro, Small and Medium Enterprises (MSMEx) credit exposure reached ₹43.3 lakh crore in September 2025, marking a 17.8% year-on-year growth. The report highlights a shift towards larger ticket-size lending and improved risk profiles across segments. Small businesses are now the largest contributors to exposure, with their share rising to 39.5%, while medium enterprises also saw an increase to 23.1%. Micro enterprises continue to account for most active loans. Public sector banks remain key lenders to micro enterprises, while private banks lead in small and medium segments. NBFCs are expanding their presence across all borrower groups. India — Maharashtra remains the largest MSME credit market, with India — Gujarat and India — Tamil Nadu following. India — Uttar Pradesh and India — Telangana reported the fastest quarterly growth. Sachin Seth of CRIF High Mark emphasized the resilience of India's MSME credit ecosystem and its contribution to India's economic transformation.
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