Small Business Credit Crosses Rs 50 Lakh Crore, Grows 14.9%: CRIF-SIDBI

New Delhi, Oct 9 (KNN) India’s small business credit portfolio grew 14.9 per cent year-on-year to Rs 50.9 lakh crore in June 2026, crossing the Rs 50 lakh crore mark. Rajasthan recorded faster growth of 16.8 per cent to Rs 3.4 lakh crore, according to a joint CRIF Credit Information Services and SIDBI report.

The national portfolio expanded 3.5 per cent quarter-on-quarter. Sole proprietor credit rose 19.3 per cent annually to Rs 30.8 lakh crore, while enterprise credit grew 8.9 per cent to Rs 20.1 lakh crore.

Active loan accounts among sole proprietors increased 27.4 per cent to 670.7 lakh, indicating wider access to formal credit, the report said.

Asset Quality And Lending Trends

National asset quality improved, with loans overdue by 91–180 days falling to 1.2 per cent in June 2026 from 1.5 per cent a year earlier, reported The Economic Times.

Very Low and Low Risk enterprise credit rose to 70.9 per cent from 66.4 per cent in June 2024. For sole proprietors, the share edged up to 56.1 per cent from 55.1 per cent, while Very High Risk exposure increased to 20 per cent from 17.4 per cent.

NBFCs led lender growth, with small business credit rising 27.7 per cent year-on-year, accounting for 30.5 per cent of the total portfolio.

Credit penetration beyond major urban centres increased, with cities outside the top 100 accounting for 37.2 per cent of the portfolio in June 2026, up from 34.5 per cent in June 2024. The top eight cities’ combined share declined to 28.4 per cent from 30.4 per cent.

Rajasthan Outperforms National Growth

Rajasthan accounted for 6.8 per cent of India’s small business credit portfolio in June 2026. Sole proprietor credit grew 18.9 per cent year-on-year, while enterprise credit rose 13.4 per cent.

The state’s 91–180-day portfolio-at-risk ratio stood at 0.9 per cent, below the national 1.2 per cent. Very Low and Low Risk exposures accounted for 77.3 per cent of enterprise credit, compared with 70.9 per cent nationally.

Private banks held 34.4 per cent of Rajasthan’s portfolio, followed by NBFCs at 33.9 per cent. Loans against property led product categories with a 29.8 per cent share, growing 24.1 per cent annually against 17.5 per cent nationally.

Credit originations reached Rs 32,700 crore in Q1 FY27, including Rs 20,400 crore for sole proprietors.

Smaller Districts Record Faster Growth

Jaipur accounted for 23.8 per cent of Rajasthan’s small business credit portfolio, followed by Jodhpur at 7.8 per cent and Ajmer at 6.3 per cent, together representing 37.9 per cent.

Among the top 10 districts, Sikar and Nagaur recorded the highest growth at 23.6 per cent and 21.4 per cent, respectively. Other districts, accounting for 33 per cent of the portfolio, grew 21.3 per cent.

Manufacturing held 45.4 per cent of Rajasthan’s enterprise credit exposure, above the national average of around 42 per cent. Services was the fastest-growing sector, expanding 15.6 per cent year-on-year. 

Within manufacturing, machinery and equipment credit grew around 16 per cent, alongside improved delinquency levels.

MSME Base And Economic Outlook

Rajasthan had 53.14 lakh registered MSMEs as of July 31, 2026, employing over 1.77 crore people. These included 52.83 lakh micro, 29,714 small and 1,866 medium enterprises. Trading led with 21.63 lakh units, followed by services at 18.10 lakh and manufacturing at 13.41 lakh.

Key initiatives supporting the sector include the Rajasthan Industrial Development Policy 2026, Rajasthan MSME Policy 2024, Raj Udyog Mitra and the Rajasthan MSME Facilitation Act.

Rajasthan’s GSDP reached Rs 18.75 lakh crore in FY26, making it India’s seventh-largest state economy. Nominal GSDP grew at a compound annual rate of around 13 per cent between FY21 and FY26. 

Services contributed 46.5 per cent of gross value added, followed by the primary sector at 28.3 per cent and the secondary sector at 25.2 per cent. The state aims to become a USD 350 billion economy by FY29.

(KNN Bureau)