Archive · 27 Dec 2025
MSME Credit Exposure Reaches Rs 46 Lakh Crore in 2025
In 2025, small businesses in India borrowed a lot more money, reaching Rs 46 lakh crore.
This is a big increase from the previous year.
More people and businesses are taking loans, and the quality of these loans is getting better.
Most of the borrowers are small business owners working alone.
Banks and other lending companies are giving out more loans, especially for daily business needs and buying property.
Many new borrowers are also starting to use formal loans for the first time.
Aggregate small business credit exposure grew by 16.2% year-on-year to Rs 46 lakh crore in 2025.
Active loan accounts increased by 11.8% to 7.3 crore.
Policy support and government credit schemes contributed to sustained momentum in MSME lending.
Portfolio quality improved with loans overdue by 91-180 days declining to 1.4% from 1.7% the previous year.
Sole proprietors account for nearly 80% of the borrower base, while unsecured lending grew by 31% year-on-year.
- Who
- MSMEs and small businesses in India
- What
- Credit exposure growth and borrowing trends
- When
- 2025
- Where
- India
- Why
- Policy support and government credit schemes
- Total Credit Exposure
- Rs 46 lakh crore
- Growth Rate (YoY)
- 16.2%
- Active Loan Accounts
- 7.3 crore
- Growth in Active Loan Accounts
- 11.8%
- Loans Overdue (91-180 days)
- 1.4%
- Sole Proprietors' Share of Borrower Base
- 80%
- Unsecured Lending Growth (YoY)
- 31%
- New to Credit Borrowers (as of September 2025)
- 23.3%
- New to Enterprise Borrowing (as of September 2025)
- 12%
