Public sector banks continued to steer in micro enterprise lending with 45% market share whereas non-public banks dominated the small and medium enterprise segments, the credit score bureau stated on Thursday, unveiling a MSMEx (micro, small and medium publicity) Highlight Report.
The report captures essential shifts in credit score publicity, lender traits, borrower behaviour, and sectoral distribution, highlighting the ecosystem evolving in the direction of better formalization and resilience.
Non-bank lenders have steadily elevated their footprint throughout segments, benefiting from regulatory help that classifies on-lending to small enterprises underneath precedence sector norms. Micro & small publicity companies lead the sector-small publicity companies maintain 40% of excellent credit score worth, whereas micro publicity companies dominate in lively loans quantity (81.1%).
Proprietorships stay dominant (62.8%) for micro publicity companies with working capital loans accounting for over 50% of the excellent loans.