What is the story about?
India’s micro, small and medium exposure (MSMEx) loan book grew 17.8% year-on-year to ₹43.3 lakh crore in September 2025, while overall portfolio quality improved, according to CRIF High Mark’s latest MSMEx Spotlight Report.
Exposure levels remained broadly stable quarter-on-quarter.
Active loan accounts rose 5.7% year-on-year to 192.9 lakh. The report notes that credit expansion continues to be led by higher average ticket sizes rather than a large increase in borrower numbers.
Small enterprises increased their share of total exposure from 38.4% to 39.5% over the past year. Medium enterprises grew from 22.5% to 23.1%. Micro enterprises continued to dominate in loan count but saw limited movement in overall exposure during the quarter.
Public sector banks held 36.3% of micro-enterprise exposure, while private banks led the small and medium segments with 46.4% and 47% share, respectively. NBFCs widened their participation, increasing their exposure share across micro (20.1%), small (13.9%), and medium (15.7%) businesses.
Term loans remained the largest component of MSME credit, particularly for medium enterprises. Working capital facilities continued to dominate borrowing among micro and small firms, with limited change in product mix during the quarter.
Maharashtra remained the largest MSME credit market with ₹7 lakh crore in outstanding exposure, though it saw a 2.4% quarterly decline. Gujarat (₹4 lakh crore) and Tamil Nadu (₹3.7 lakh crore) reported sequential and annual growth. Uttar Pradesh and Telangana posted the strongest quarterly expansion at 5.4% and 6.5%.
The proportion of loans overdue by 91–180 days fell to 1.6% in September 2025. The share of borrowers in the Very Low and Low Risk categories increased across all segments—62.8% in micro, 69.9% in small, and 59.4% in medium enterprises.
Sachin Seth, Chairman of CRIF High Mark and Regional Managing Director – CRIF India & South Asia, said the data reflects a maturing MSME credit environment with wider lender participation and clearer risk differentiation.
Exposure levels remained broadly stable quarter-on-quarter.
Active loan accounts rose 5.7% year-on-year to 192.9 lakh. The report notes that credit expansion continues to be led by higher average ticket sizes rather than a large increase in borrower numbers.
Small enterprises increased their share of total exposure from 38.4% to 39.5% over the past year. Medium enterprises grew from 22.5% to 23.1%. Micro enterprises continued to dominate in loan count but saw limited movement in overall exposure during the quarter.
Public sector banks held 36.3% of micro-enterprise exposure, while private banks led the small and medium segments with 46.4% and 47% share, respectively. NBFCs widened their participation, increasing their exposure share across micro (20.1%), small (13.9%), and medium (15.7%) businesses.
Term loans remained the largest component of MSME credit, particularly for medium enterprises. Working capital facilities continued to dominate borrowing among micro and small firms, with limited change in product mix during the quarter.
Maharashtra remained the largest MSME credit market with ₹7 lakh crore in outstanding exposure, though it saw a 2.4% quarterly decline. Gujarat (₹4 lakh crore) and Tamil Nadu (₹3.7 lakh crore) reported sequential and annual growth. Uttar Pradesh and Telangana posted the strongest quarterly expansion at 5.4% and 6.5%.
The proportion of loans overdue by 91–180 days fell to 1.6% in September 2025. The share of borrowers in the Very Low and Low Risk categories increased across all segments—62.8% in micro, 69.9% in small, and 59.4% in medium enterprises.
Sachin Seth, Chairman of CRIF High Mark and Regional Managing Director – CRIF India & South Asia, said the data reflects a maturing MSME credit environment with wider lender participation and clearer risk differentiation.
