Aggregate small business credit exposure registered a 16.2 per cent YoY growth in 2025, reaching Rs 46 lakh crore, said a CRIF–SIDBI Small Business Spotlight Report. The report showed that the active loan accounts grew by 11.8 per cent to 7.3 crore in the year.
The report highlighted that policy support and multiple government credit schemes for MSMEs have helped sustain this momentum throughout the year. The report stated that portfolio quality has improved across segments as loans overdue by 91 to 180 days declined to around 1.4 per cent from 1.7 per cent last year.
Sachin Seth, Chairman of CRIF India, stated that sole proprietors continue to anchor India’s small business credit ecosystem, accounting for nearly 80 per cent of the borrower base as of September 2025.
“At the same time, borrowers with both individual and enterprise credit presence are contributing a steadily rising share of overall credit exposure, and this segment has recorded the strongest growth in exposure over the year,” Seth added.
Lending trends
The report stated that private banks continue to lead enterprise lending, closely followed by public sector banks. NBFCs are also steadily increasing their presence, especially among sole proprietors, and now account for more than 41 per cent of lending in this segment.
Borrowing trends
Highlighting the borrowing patterns of the companies, the report stated that working capital loans dominate, accounting for nearly 57 per cent of outstanding credit.
“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 per cent year-on-year, even amid concerns around stress,”, the report added.
The report showed that as of September 2025, 23.3 per cent of borrowers were new to credit and 12 per cent were new to enterprise borrowing, indicating an increase in formalisation.
