SIDBI Report: MSME Credit Supply Falls 11% in Q4 FY25
Why in the news
A SIDBI report found a mismatch in the last quarter of FY24-25: MSMEs wanted more loans, yet lenders gave fewer.
Key facts
- Lenders cited credit risk worries amid a weaker external economy.
- Private banks: steepest supply drop, -14% year-on-year.
- Loans beyond one year and overdraft facilities fell notably.
Strengths and gaps
| Indicator | Figure |
|---|---|
| New cash credit facility loans | Up 7% year-on-year in Q4 |
| Udyam-registered MSMEs (12 May 2025) | 6.35 crore |
| MSMEs that ever accessed credit | 3.68 crore |
Opportunity
- A large untapped market; lenders can target the New-to-Credit (NTC) segment.
Exam angle
- Report by SIDBI for Q4 FY24-25.
- Private bank supply: -14%.