Tamil Nadu second greatest marketplace for small enterprise credit score: research

Tamil Nadu is the second greatest marketplace for small enterprise credit score, accounting for 9.3% of the nationwide complete, as per a joint report by Small Industries Development Bank of India (SIDBI) and credit score bureau CRIF High Mark.

As of June 30, 2025, Tamil Nadu had an excellent small enterprise credit score portfolio of about ₹4.21 lakh crore, up 15.7% from ₹3.64 lakh crore as of June 30 2024, the report mentioned.

Maharashtra remained the most important market with ₹6.0 lakh crore in excellent credit score, whereas Tamil Nadu, Gujarat (₹3.69 lakh crore), Uttar Pradesh (₹3.61 lakh crore), and Karnataka (₹3.18 lakh crore) spherical out the highest 5 by portfolio measurement. Uttar Pradesh registered highest excellent portfolio development of 20.7% on a year-on-year foundation.

The report defines “Small Business” as these companies which have an aggregated credit score publicity not exceeding ₹5 crore from the formal lending system. The research analyses there borrower segments- namely- Enterprises, ‘Sole Proprietors with Entity Presence’ and Sole Proprietors.

The enterprises phase consists of borrowings availed within the identify of a commerce or enterprise entity. Sole Proprietors includes self-employed people who’ve availed business-type loans of their private names. Sole Proprietors with Entity Presence consists of debtors who’ve availed enterprise function loans each of their private capability and within the identify of their commerce or enterprise.

Maharashtra leads in portfolio excellent and share throughout all borrower segments, the research mentioned.

Tamil Nadu is second within the Sole Proprietors and Sole Proprietors with Entity Presence borrower phase with a share of 11% and eight.8% respectively. In phrases of Enterprises debtors segment- Tamil Nadu had a share of seven.9%, with Gujarat within the second place with a share of 9.7%, the research mentioned.

Interestingly, the report mentioned whereas cities reminiscent of Bengaluru (15.6%) and Hyderabad (18.2%) account for a major share of their respective state portfolios, Chennai contributes comparatively less-only 10.6% of Tamil Nadu’s excellent small enterprise credit score portfolio as of June 30, 2025.

Overall, for Tamil Nadu PAR 91–180, which represents loans which can be between 91 to 180 days overdue, remained at 1.7% as on June 2025. Nationally, PAR 91–180 declined to 1.5% in June 2025from 2.0% in June 2023, the research mentioned.