Individual MSMEs recorded a 12.6 percent year-over-year growth in the value of originations and a 19.4 percent increase. | Representative
India’s micro, small and medium enterprise (MSME) loan portfolio saw a growth of 17.8 per cent to Rs 64.1 trillion as of March 2024, compared to the same period last year, according to the fourth edition of CRIF High Mark’s How India Lends report. The report, accessed by CRIF High Mark, is expected to reach Rs 64.1 trillion by March 2024. The Financial ExpressHe highlighted that MSME loans cover credit extended to entities with an overall credit exposure of up to Rs 50 crore as well as self-employed individuals.
The report further detailed a significant increase in loans to self-employed individuals, which rose 28.9 per cent to Rs 35.7 trillion, while loans to MSME entities saw a more modest increase of 6.6 per cent, reaching Rs 28.4 trillion.
Growth in loans to MSMEs
During fiscal year 2024, a total of 27.4 million loans were approved to MSMEs, worth Rs 54.2 trillion. This marks a growth of 19.3 percent in volume and 5.4 percent in value. The data showed a year-on-year (YoY) increase of 3.1 percent in the value of originations for MSME entities, with a more robust growth of 18.9 percent in volume.
In contrast, individual MSMEs recorded a 12.6 percent year-over-year growth in origination value and a 19.4 percent increase in volume over the same period.
Portfolio quality, delinquency trends
The report also noted improvements in the portfolio quality of individual SMEs. The portfolio at risk (PAR) for 31-90 days declined to 2.7 percent in March 2024, down from 3 percent in March 2023. Similarly, the delinquency rates for PAR 91-180, PAR 181-360 and PAR 360+ improved to 1.1 percent, 0.7 percent and 7.3 percent respectively as of March 2024.
However, the MSME segment saw a decline in portfolio quality, with PAR 31-90 increasing to 2.5 percent and PAR 91-180 increasing slightly to 1.1 percent, compared to 2.1 percent and 1 percent in March 2023.
Growth in microfinance loans
In addition to SME lending, the microfinance loan portfolio also expanded significantly during FY24, registering a growth of 26.8 percent to Rs 4.4 trillion. Origination volume increased by 6 percent, with a total of 83.5 million loans approved, amounting to Rs 3.8 trillion, reflecting a growth of 19 percent.
First published: September 5, 2024 | 17:46 IS
Disclaimer:
The information contained in this post is for general information purposes only. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the post for any purpose.
We respect the intellectual property rights of content creators. If you are the owner of any material featured on our website and have concerns about its use, please contact us. We are committed to addressing any copyright issues promptly and will remove any material within 2 days of receiving a request from the rightful owner.