Small business credit hits ₹46 lakh crore with surge in first-time borrowers
Published on: Dec. 29, 2025, 7:37 a.m. | Source: scanx.trade
The CRIF–SIDBI Small Business Spotlight Report reveals significant growth in India's small business credit market, reaching ₹46 lakh crore with a 16.2% year-on-year increase. The growth is driven by a rise in first-time borrowers (23.3%) and expanding NBFC participation. Active loan accounts grew by 11.8% to 7.30 crore. Sole proprietors dominate the market, accounting for 80% of credit exposure. Working capital loans constitute 57% of enterprise credit, while loans against property are prominent for sole proprietors. Unsecured lending saw a sharp 31% growth. The market is expanding beyond major urban centers, with improved asset quality trends.
