MSME Pulse

The Need Of MSME PULSE

MSME Pulse - May 2025 – Highlights

• The MSME Pulse Report based on credit bureau data for the quarter ending March 2025 provides a comprehensive analysis of the current state of credit to Micro, Small and Medium Enterprises (MSME) Sector.
• MSME Pulse Report aims to inform stakeholders and policymakers about the critical trends and developments shaping the MSME lending landscape.
• Overall MSME commercial credit exposure increased to ₹35.2 lakh crore as of end-March 2025, against ₹31 lakh crore as of end-March 2024, a healthy growth of 13% YoY.
• The demand for commercial credit, which is measured by the number of enquiries, grew 11% YoY in the quarter ending March 2025. Commercial credit supply (disbursements by value) grew 3% YoY in FY 2024-25. However, in the last quarter (Jan-Mar 2025) there was a decline of 11% YoY possibly due to higher credit concerns among lenders arising from increased external headwinds.
• Overall 90 day plus delinquencies fell to 1.79%, the lowest in five years.
• Share of New-to-Credit MSMEs to total new loan originations was strong at 47%.
• Maharashtra, Gujarat, Tamil Nadu, Uttar Pradesh and Delhi continued to dominate commercial lending, together accounting for 48% of the value of overall originations in the quarter ending March 2025.
• While the manufacturing sector had the greatest share of originations in Maharashtra, Gujarat, Tamil Nadu and Delhi, Uttar Pradesh had the most originations to the trade sector.