MSME lending sees robust value, volume growth, delinquencies also increase

The increase in lending to the MSME sector reflects robust credit demand from small businesses as well as improving credit access supported by the increasing digital lending initiatives

Lending to micro, small and medium enterprises (MSMEs) grew by 19.3 per cent year-on-year (Y-o-Y) to Rs 45.3 trillion (as of June 2025) and the number of active loans rose 8.7 per cent Y-o-Y to 6.9 crore during this period. This reflects robust credit demand from small businesses as well as the improving credit access in this segment supported by the increasing digital lending initiatives, according to the CRIF–SIDBI Small Businesses Report 2025. However, delinquency trends moved up in the 91–180 days past-due date (DPD) bucket to 1.5 per cent from 1.4 per cent Y-o-Y. It remained flat at 3.4