New Delhi, Dec 26 Aggregate small‑business credit exposure in India reached Rs 46 lakh crore, up 16.2 per cent year‑on‑year, a report said on Friday.
The report from CRIF High Mark and SIDBI said that active loan accounts grew 11.8 per cent to 7.3 crore, supported by policy measures and government credit schemes for micro, small and medium enterprises.
Among businesses with credit exposure up to Rs 5 crore, the report found that formalisation was advancing with 23.3 per cent of borrowers new to credit and 12 per cent new to enterprise borrowing as of September 2025.
The report showed a resilient and steadily strengthening small business credit environment. Credit portfolios continue to expand and formalisation is progressing gradually, with more lenders participating actively, while asset quality remains healthy.
Sole proprietors continued to dominate the system, accounting for around 80 per cent of credit and nearly 90 per cent of borrowers. The fastest growing segment--sole proprietors posted the fastest growth at 20 per cent, driven largely by loans against property.
"Private banks continue to lead enterprise lending, closely followed by public sector banks. NBFCs are steadily increasing their presence, especially among sole proprietors. They now account for more than 41 percent of lending in this segment," the report noted.
Working capital loans accounted for nearly 57 per cent of outstanding credit, while term loans continue to support capital expenditure.
Among sole proprietors, loans against property remain the largest category, followed by business loans and commercial vehicle loans. Unsecured lending has grown by 31 percent year-on-year, even amid concerns around stress, it said.
“Sole proprietors continue to anchor India’s small business credit ecosystem, accounting for close to 80 percent of the borrower base as of September 2025…Credit deepening and gradual formalisation are progressing in parallel as small businesses scale,” said Sachin Seth, Chairman, CRIF High Mark and Regional Managing Director – CRIF India and South Asia.
Maharashtra, Tamil Nadu, Uttar Pradesh, and Gujarat lead in overall portfolio size. Telangana, Andhra Pradesh, and West Bengal show strong growth momentum. Manufacturing continues to lead in absolute credit exposure, while the services sector recorded a growth of 19.6 percent year-on-year.
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