India’s MSME loan portfolio grew by 17.8 % to ₹64.1 lakh crore as of March 2024 from the year-ago period, said credit bureau CRIF High Mark in the fourth edition of its How India Lends report on Thursday. MSME loans included loans to entities with aggregate credit exposure of up to Rs 50 crore and self-employed individuals.
Loans to self-employed individuals grew by a healthy 28.9 % to ₹ 35.7 lakh crore in comparison to a 6.6 % growth to ₹28.4 lakh crore in loans to MSME entities. The total MSME loans originated or sanctioned in FY24 were 2.74 crore involving ₹54.2 lakh crore, growing by 19.3 % in volume and 5.4 % in amount.
Entity MSMEs witnessed 3.1 % year-on-year (YoY) growth in originations value and 18.9 percent YoY growth in originations volume in FY24. On the other hand, individual MSMEs saw 12.6% YoY growth in originations value and 19.4% growth in originations volume in FY24.
In terms of portfolio quality, individual MSMEs witnessed substantial improvement in delinquency as PAR 31-90 (portfolio at risk by 31-90 days) improved to 2.7 % as of March 2024 vis-a-vis 3 % as of March 2023. Likewise, PAR 91-180, PAR 181-360 and PAR 360+ improved to 1.1 %, 0.7 %, and 7.3 % respectively as of March 2024.
In contrast, the entity MSME segment saw deterioration in PAR 31-90 to 2.5 % and in PAR 91-180 to 1.1 % as of March 2024 vis-a-vis 2.1 % and 1 % respectively as of March 2023. Microfinance loan portfolio in FY24 also grew by 26.8 % to ₹4.4 lakh crore while origination volume grew by 6 % to 8.35 crore involving ₹3.8 lakh crore, growing by 19 %.
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