Mumbai, October 13, 2026: India’s small business credit portfolio reached ₹50.9 lakh crore as of June 2026, marking a 14.9% year-on-year increase and a 3.5% rise quarter-on-quarter, according to the fifth edition of the CRIF-SIDBI Small Business Spotlight Report released by CRIF Credit Information Services Private Limited and the Small Industries Development Bank of India (SIDBI).
The report, which analyses data as of June 2026, covers small businesses with aggregate credit exposure up to ₹5 crore, including both enterprises in commercial credit bureau records and sole proprietors who have availed business loans in their individual names.
Growth led by sole proprietors
Sole proprietors drove much of the credit growth, with their portfolio expanding 19.3% year-on-year and active loans in the segment rising 27.4% over the same period. This trend points to a broadening of formal credit access among small business owners.
Asset quality across the sector remained stable, as the proportion of loans overdue by 91–180 days (PAR 91–180) improved to 1.2% in June 2026 from 1.5% a year earlier.
Manufacturing remains dominant sector
Manufacturing enterprises continued to anchor the small business credit portfolio, accounting for 41.92% of the aggregate outstanding amount. Portfolio quality also improved, with the share of Very Low Risk and Low Risk exposures among enterprises rising from 66.4% in June 2024 to 70.9% in June 2026. For sole proprietors, this share increased from 55.1% to 56.1% over the same period.
Credit expands beyond top cities
The report found that small business credit is increasingly reaching beyond India’s largest metropolitan areas. The share of credit outstanding in cities outside the top 100 rose to 37.2% in June 2026, while lending to sole proprietors in these locations grew 24.9% year-on-year.
Rajasthan outpaces national growth
Rajasthan’s small business credit portfolio stood at ₹3.4 lakh crore, representing 6.8% of the national total and growing 16.8% year-on-year, outpacing the national growth rate. The state maintained a healthy portfolio, with PAR 91–180 at 0.9%. Rajasthan’s enterprise portfolio also had a stronger borrower-risk profile, with 77.3% of exposure in low-risk categories compared to 70.9% nationally.
Within Rajasthan, Sikar and Nagaur districts recorded portfolio growth of 23.6% and 21.4% year-on-year, respectively, indicating the rise of new growth centres. Manufacturing made up 45.4% of Rajasthan’s enterprise exposure, while the services sector posted the highest momentum with 15.6% year-on-year growth.
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