Maharashtra Leads in MSME Loans and Credit Growth
A report by Transunion states that Maharashtra leads the country in MSME loans, with the highest share of credit to small and medium businesses, according to TransUnion CIBIL. The state is also seeing good repayment trends, showing that most businesses are managing their loans well. By Riddhima Jain Published on July 1, 2025, 14:11 IST
As India celebrated MSME Day, a new report by TransUnion CIBIL highlights Maharashtra's leading role in supporting and sustaining the country's vibrant MSME ecosystem. From disciplined repayments to strong loan demand, the state continues to set the pace for small business financing across India.
The data shows that Maharashtra accounts for nearly 19% of all MSME loans in the ₹10–₹50 crore range — the highest in the country. What's more encouraging is that larger businesses in this segment are showing excellent repayment behavior, with a delinquency rate of just 1.4%, slightly better than the national average.
For smaller businesses with credit exposure between ₹1 crore and ₹10 crore, Maharashtra contributes to 15% of total loan balances. Though the repayment delays in this group are a touch higher at 1.8%, they still remain in a healthy zone. Even micro businesses — those borrowing up to ₹1 crore — showed steady growth of 11% over the last five years, though repayment delays in this category were a bit higher at 3.4%, hinting at the need for better credit monitoring.
What's driving this growth? Manufacturing is at the heart of it. It made up 35% of all new MSME loans in the March 2025 quarter. And with 22% of these loans being long-term, it's clear that many MSMEs are investing in building future capacity, expanding their businesses with confidence.
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