Uttar Pradesh MSME Loans Surge More Than 20% to ₹2.48 Trillion in FY25

As per the news reports, lending to micro, small and medium enterprises (MSMEs) in Uttar Pradesh increased to ₹2.48 trillion in FY25. This reflects a rise of more than 20% compared to the previous year. The state has over 9 million MSMEs, the largest number in India.

MSME loans were at ₹1.68 trillion in FY23. The figure went up to ₹2 trillion in FY24. In FY25, it reached ₹2.48 trillion, marking steady growth over the last three years.

Lending Patterns

Commercial banks dominate lending in urban and semi-urban centres. In rural areas, cooperative banks and microfinance institutions provide credit to small businesses, particularly women-led enterprises. Regional distribution shows eastern Uttar Pradesh at 46% of microfinance loans, followed by the western region at 40% and the central region at 14%.

The Uttar Pradesh government has been asking banks to make credit more accessible to MSMEs. The purpose is to expand small business activity and generate local employment opportunities.

Economic Growth Targets

The state has set a goal of becoming India’s first $1 trillion economy. It is also projecting itself as a sourcing hub for exporters, traders and e-commerce companies. MSMEs are expected to play a significant role in this plan.

The state is holding the third edition of the Uttar Pradesh International Trade Show (UPITS) from September 25-29, 2025, at the India Expo Mart in Greater Noida. Russia has been named the partner country for the event.

Read more: PhonePe and DSP Finance Launch Loans Against Mutual Funds up to ₹2 Crore!

Conclusion

MSME credit in Uttar Pradesh has grown consistently in recent years, reaching ₹2.48 trillion in FY25. Data shows wider access to loans across regions, supported by banks and lending institutions.

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