ENA MSME 2024-09-06 14:08:37 <p><span style="font-size:14px"><strong>New Delhi, Sep 6 (KNN)</strong> Indias micro, small, and medium enterprises (MSME) loan portfolio saw robust growth in the financial year ending March 2024, reaching Rs 64.1 trillion&mdash;a 17.8 per cent rise year-on-year (Y-o-Y), according to CRIF High Mark's latest How India Lends report.</span></p> <p><span style="font-size:14px">The report, accessed by The Financial Express, highlights the expanding role of MSMEs and self-employed individuals in the countrys economy, with loans extended to these segments seeing significant increases.</span></p> <p><span style="font-size:14px">The report defines MSME loans as credit extended to entities with a total credit exposure of up to Rs 50 crore, including self-employed individuals.</span></p> <p><span style="font-size:14px">Loans to self-employed individuals grew at a strong pace, surging by 28.9 per cent to Rs 35.7 trillion. Meanwhile, loans to MSME entities recorded a more measured growth of 6.6 per cent, reaching Rs 28.4 trillion.</span></p> <p><span style="font-size:14px">A total of 27.4 million MSME loans were sanctioned in FY24, amounting to Rs 54.2 trillion&mdash;a 19.3 per cent rise in volume and a 5.4 per cent increase in value over the previous year.</span></p> <p><span style="font-size:14px">The report also noted a 3.1 per cent Y-o-Y rise in the value of originations for MSME entities, with volume growth much higher at 18.9 per cent.</span></p> <p><span style="font-size:14px">Individual MSMEs experienced particularly strong growth, recording a 12.6 per cent Y-o-Y increase in the value of originations and a 19.4 per cent rise in loan volume during the same period.</span></p> <p><span style="font-size:14px">The report highlighted mixed trends in portfolio quality. For individual MSMEs, the Portfolio at Risk (PAR) for loans overdue by 31-90 days improved to 2.7 per cent by March 2024, down from 3 per cent a year earlier. Similarly, delinquency rates for longer overdue periods showed improvement.</span></p> <p><span style="font-size:14px">However, the MSME entity segment saw some deterioration, with the PAR 31-90 increasing to 2.5 per cent, up from 2.1 per cent in March 2023.</span></p> <p><span style="font-size:14px">In addition to MSME growth, the microfinance sector also flourished, registering a 26.8 per cent growth in its loan portfolio, totalling Rs 4.4 trillion by March 2024.</span></p> <p><span style="font-size:14px"><em><strong>(KNN Bureau)</strong></em></span></p> 39184 https://knnindia.co.in/news/newsdetails/msme/msme-loan-portfolio-grows-178-to-rs-641-trillion-by-march-2024-report 2024-09-06 14:08:37 knnindia.co.in