Small Business Credit Growth Declines to 14.9% Amid Strong Demand: CRIF-SIDBI Report
Small business credit growth slows to 14.9 per cent: CRIF-SIDBI report
Business Standard
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The CRIF-SIDBI Small Business Spotlight Report for March 2026 reveals that small business credit growth has slowed to 14.9% year-on-year as of December 2025, down from 20% in December 2024. Despite this decline, the total outstanding small business credit portfolio reached ₹47.8 lakh crore due to a favorable economic environment and policy support.
- 01Small business credit growth slowed to 14.9% year-on-year as of December 2025.
- 02The outstanding small business credit portfolio reached ₹47.8 lakh crore.
- 03Growth in active loans increased to 13.8% year-on-year, up from 9.6% the previous year.
- 04The slowdown is attributed to a higher base effect from the previous year.
- 05Small businesses are defined as those with credit exposure not exceeding ₹5 crore.
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According to the 'CRIF–SIDBI Small Business Spotlight Report (March 2026)', small business credit growth has decelerated to 14.9% year-on-year as of December 2025, compared to 20% in December 2024. The total outstanding small business credit portfolio now stands at ₹47.8 lakh crore. This growth moderation is attributed to a higher base effect from the previous year, despite a favorable domestic economic environment and supportive policy initiatives that continue to drive demand. In contrast, the number of active loans grew at a faster rate of 13.8% year-on-year, compared to 9.6% the previous year, indicating an increasing share of smaller exposure loans. The report defines 'small businesses' as those with an aggregated credit exposure not exceeding ₹5 crore from formal lending institutions, encompassing both enterprises and individual proprietors seeking loans for business purposes.
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The slowdown in credit growth may affect small business owners' access to financing, impacting their ability to invest and expand operations.
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