Maharashtra leads the market for small business credit: SIDBI-CRIF report

Current Context: On September 8, 2025, SIDBI (Small Industries Development Bank of India) and CRIF High Mark (Credit Information Reporting Firm High Mark) released the “Small Business Spotlight” report.

• Maharashtra led the small business credit market with ₹6.06 lakh crore, holding a 13.4% share.
• The total credit portfolio stood at ₹15.3 lakh crore, with 19.3% year-on-year growth.
• Sole proprietors accounted for 75% of credit and 85% of active loans.
• Enterprises saw the highest portfolio growth at 24.7% YoY, while sole proprietors with entity presence had 9.3% borrower growth.
• Urban regions held 51.9% of the credit portfolio; rural areas had 29%.
• Small businesses were defined as those with aggregate credit exposure ≤ ₹5 crore from formal lenders.

Question:

Q.1 As per the “Small Business Spotlight” report (September 2025), which state led the small business credit market?
a) Tamil Nadu
b) Gujarat
c) Maharashtra
d) Karnataka

Answer: c) Maharashtra topped the list with ₹6.06 lakh crore credit, accounting for 13.4% of India’s total small business credit.