CRIF-SIDBI Small Business Report: Credit Value Slows, Volume Rises
Why in the news
A new edition of the CRIF-SIDBI report points to a change in small business lending: total credit is huge and resilient, yet it is spreading across more, smaller loans.
Definition used
- Exposure limit: aggregate credit from the formal lending system not above ₹5 crore.
- Borrowers included: registered enterprises and individual proprietors who borrow in their own name for business use.
Value versus volume
| Metric | Dec 2024 | Dec 2025 |
|---|---|---|
| Portfolio value growth (y-o-y) | 20% | 14.9% |
| Active loan count growth (y-o-y) | 9.6% | 13.8% |
| Total portfolio value | – | ₹47.8 lakh crore |
Understanding the slowdown
- The drop from 20% to 14.9% is chiefly a high base effect: with credit already so large in 2024, matching the same percentage needs a far bigger rupee increase.
- Faster loan-count growth suggests a rising share of smaller-exposure loans.
Key concepts
- Individual proprietors are counted because most small businesses are sole proprietorships borrowing on personal identity documents; leaving them out would understate credit flow.
- Formal lending means credit from regulated institutions such as public and private banks, NBFCs and MFIs, which report to credit bureaus like CRIF.
Exam angle
- Report: CRIF-SIDBI Small Business Spotlight, third edition.
- Co-publisher with CRIF High Mark: SIDBI.
- Concept: high base effect.