Small business credit growth slows to 14.9 per cent: CRIF-SIDBI report

India's small business credit portfolio remains resilient at ₹47.8 lakh crore, though growth moderated amid a higher base, even as smaller-ticket loans gained share

The third edition of the 'CRIF–SIDBI Small Business Spotlight Report (March 2026)' highlights the continued resilience in the small business credit ecosystem.

 

The segment has demonstrated consistent strength and resilience. As of December 2025, the outstanding small business portfolio stood at ₹47.8 lakh crore. This was supported by a favourable domestic economic environment as well as policy-driven initiatives and schemes that continue to sustain demand.

 

However, growth moderated to 14.9 per cent year-on-year (Y-o-Y) as of December 2025 compared to 20 per cent Y-o-Y in December 2024, indicating the effect of a higher base. At the same time, during this period, active loans grew at a faster pace: 13.8 percent Y-o-Y versus 9.6 per cent Y-o-Y. This highlights the rising share of smaller exposure loans in the overall loan count.

   

'Small Business' is defined in the report as those with an aggregated credit exposure not exceeding Rs 5 crore from the formal lending system. It accounts not only for enterprises in the commercial bureau but also for individual proprietors who have taken loans for a “business purpose” in their individual names.