Public sector banks continued to lead in micro business lending with 45% market share while private banks dominated the small and medium business segments, the credit bureau said on Thursday, unveiling a MSMEx (micro, small and medium exposure) Spotlight Report.
The report captures critical shifts in credit exposure, lender trends, borrower behaviour, and sectoral distribution, highlighting the ecosystem evolving towards greater formalization and resilience.
Non-bank lenders have steadily increased their footprint across segments, benefiting from regulatory support that classifies on-lending to small enterprises under priority sector norms. Micro & small exposure businesses lead the sector-small exposure businesses hold 40% of outstanding credit value, while micro exposure businesses dominate in active loans volume (81.1%).
Proprietorships remain dominant (62.8%) for micro exposure businesses with working capital loans accounting for over 50% of the outstanding loans.
