New Delhi: Aggregate small business credit exposure has reached Rs 46 lakh crore, an increase of 16 per cent as of September 30, a report said. "Active loan accounts have grown by 11.8 per cent to 7.3 crore. Policy support and multiple government credit schemes for MSMEs have helped sustain this momentum," CRIF High Mark-SIDBI Report said.
Portfolio quality has improved across segments, it said, adding that loans overdue by 91 to 180 days declined to around 1.4 per cent as of September 2025, from 1.7 per cent in September 2023, it said. Enterprises continue to show lower risk profiles. Sole proprietors have also seen steady improvement and the share of very low and low-risk borrowers increased between September 2023 and September 2025, supported by better underwriting practices and wider use of digital data.
"Sole proprietors continue to dominate the credit ecosystem. They account for around 80 per cent of total credit and nearly 90 per cent of borrowers. The fastest-growing segment is sole proprietors with an entity presence. This segment has grown by 20 per cent year-on-year, led largely by loans against property," it said.
As of September 2025, 23.3 per cent of borrowers were new to credit and 12 per cent were new to enterprise borrowing and this points to increasing formalisation, it added. For enterprises, working capital loans dominate and account 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.
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