MSME Credit Grows 12.5% to ₹47.4 Trillion, Small and Medium Firms Lead!

India’s MSME credit portfolio reached ₹47.4 trillion as of June 2026, up 12.5% from a year earlier, according to Business Standard citing a CRIF High Mark report.  

The increase came mainly from small and medium enterprises, while lending to micro enterprises remained largely unchanged. 

Small and Medium Enterprises 

CRIF High Mark classifies micro enterprises as those with credit exposure of up to ₹2 crore. Small enterprises fall in the ₹2-20 crore range, while medium enterprises have exposure between ₹20 crore and ₹100 crore. 

Credit to small enterprises grew 20.3% year-on-year, while the medium enterprise portfolio increased 21.3%. Micro enterprises made up 84.4% of active MSME credit accounts. 

Manufacturing Credit Grows 

Manufacturing recorded 17.4% growth in credit, compared with 12.7% for trading. Credit to services increased by just 0.2%. 

Engineering and machinery had the largest share of manufacturing credit. Agro and forestry, chemicals, basic metals, and textiles were the other major segments reported by CRIF High Mark. 

Engineering Clusters Expand 

The number of engineering and machinery districts with MSME credit of more than ₹1,000 crore rose from 24 to 47 over three years. These districts accounted for 63.5% of credit in the segment. 

Pune, Ahmedabad, Bengaluru, Mumbai, and Rajkot together accounted for 18.7% of engineering and machinery credit. 

Trade Credit Concentrates 

The number of wholesale trade districts with high credit volumes increased from 54 to 119. These districts accounted for 71.7% of wholesale trade credit. 

High-volume retail trade districts increased from 143 to 189 and accounted for 75.1% of retail trade credit. 

Chemicals and Textiles 

In chemicals, 24 mature clusters accounted for 53.1% of sectoral credit, with Ahmedabad and Mumbai among the key locations. In textiles, 15 clusters accounted for 60.8% of credit, with Surat alone accounting for 19.4%. 

Private-sector banks accounted for the largest share of lending across clusters. NBFCs increased their share in some industrial segments, including chemicals. 

Read More: Commerce Ministry Proposes ₹23,000 Crore RoDTEP Outlay for FY27, Seeks Five-Year Extension! 

Conclusion 

MSME credit growth was concentrated in small and medium enterprises, manufacturing, and established business clusters. Micro enterprises continued to account for most active credit accounts. 

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