Context:
The Small Industries Development Bank of India (SIDBI), in collaboration with CRIF High Mark, released the Small Business Spotlight report, providing insights into lending trends, borrower segments, and geographic distribution of small business credit in India.
Key Highlights:
Credit Growth
- Total outstanding credit: â‚ą15.3 lakh crore (YoY growth 19.3%)
- Active loans: 6.9 crore (YoY growth 8.7%)
- Small business definition: Businesses with aggregate credit exposure ≤ ₹5 crore
Top Borrower Segments
| Segment | Contribution / Growth | Key Insight |
|---|---|---|
| Enterprises | Portfolio growth 24.7% YoY | Highest growth in outstanding credit |
| Sole Proprietors with Entity Presence | Borrower count growth 9.3% YoY | Fastest increase in number of borrowers |
| Sole Proprietors | >75% of outstanding credit, >85% of active loans | Dominant segment in terms of volume |
Geographic Distribution
Top States by Portfolio Outstanding:
| Rank | State | Outstanding (â‚ą Thousand cr) | YoY Growth (%) | % Share |
|---|---|---|---|---|
| 1 | Maharashtra | 606.2 | 16.4 | 13.4% |
| 2 | Tamil Nadu | 421.9 | 15.7 | 9.3% |
| 3 | Gujarat | 369.2 | 17.8 | 8.2% |
| 4 | Uttar Pradesh | 361.7 | 20.7 | 8.0% |
| 5 | Karnataka | 318.6 | 15.3 | 7.0% |
- Top Cities: Mumbai (4.4%), Delhi (3.8%), Bengaluru (3.0%)
- Fastest district growth: Jaipur (19.1%), Ahmedabad (19.0%)
- Rural-Urban split: Urban 51.9%, Rural 29.0%
Lender Landscape
- Private Banks: 34.4% share of total small business credit
- NBFCs: 42.4% of credit to sole proprietors
- PSBs: Focused on loans < â‚ą10 lakh; overall share declining
Portfolio Exposure
- Low-ticket loans (< â‚ą10 lakh) = 72.5% of active loans, 17.8% of outstanding portfolio
