Active loans grew 5.7 per cent YoY to 192.9 lakh, the report from CRIF High Mark said, highlighting a portfolio growth that is outpacing borrower expansion and a shift toward larger ticket lending and maturing customer profiles.
Small businesses made the highest increase in share of exposure to 39.5 per cent from 38.4 per cent a year earlier.
The medium segment followed a similar trend, increasing its share from 22.5 per cent to 23.1 per cent, and posting steady sequential growth. Micro enterprises still account for most active loans at 86.4 per cent, though their overall exposure remained stable this quarter.
Portfolio quality continued to strengthen, with overall MSMEx Portfolio at Risk (PAR) 91–180 days at 1.6 per cent in September 2025, marking an improvement over the previous quarter. More borrowers have moved into the Very Low and Low Risk categories across all segments.
“India’s MSME credit ecosystem continues to demonstrate resilience with India’s broader economic transformation. Micro borrowers remain the backbone in terms of loan volumes, the real credit momentum is shifting toward small and medium enterprises," said Sachin Seth, Chairman, CRIF High Mark and Regional Managing Director – CRIF India & South Asia.
PSU banks remain the main lenders to micro enterprises with a 36.3 per cent share, while private banks lead small and medium exposure categories at 46.4 per cent and 47 per cent respectively, the report said.
NBFCs expanded their footprint, raising shares to 20.1 per cent in micro, 13.9 per cent in small and 15.7 per cent in medium segments.
Term loans dominate MSME credit, especially for medium enterprises, where they account for more than half of exposure.
Maharashtra remains the largest market with outstanding exposure of Rs 7 lakh crore recording solid year-on-year growth.
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