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Home / News / India /  Loans worth 37 trillion sanctioned to MSMEs in FY22, up 182% from FY20: Report
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Total loan sanctioned to MSMEs stood at 37.29 trillion in FY22, an increase of roughly 5% over FY21 and 182% over FY20, as per a report by CRIF High Mark, a credit bureau.

From 37.7 lakh in FY20 to 72.4 lakh in FY21-22, the average ticket size of MSME loans increased by 92%, the data on MSME loans showed.

As of March 2022, the MSME industry’s portfolio outstanding was 22.7 lakh crore, an increase of 36% over March 2020 and up 18% from March 2021. As of March 2022, there were 137.4 lakh active loans for the MSME sector, an increase of 7% from March 2021 and a 43% increase from March 2020.

 Navin Chandani, MD & CEO, CRIF High Mark, said, “MSMEs are the backbone of the Indian economy, and our data aims to examine the key credit trends emerging for this segment, as we celebrate MSME Day 2022. The fact that total loans sanctioned to MSMEs has increased by nearly 50% compared to pre-pandemic levels is a clear indication that the lending community is actively supporting the resilience and regrowth of this sector. We will continue to publish rich data & insights to benefit the lending ecosystem for small businesses."

Small borrower segment had the highest market share by originations value in FY22 at 28.5%, followed by Mudra Segment at 26.2%. By originations volume, Mudra Borrower Segment had the biggest market share in FY22 at 57.7%, followed by Micro segment at 21.2%, as per the report.

Market share by originations value of private banks significantly increased from 33.6% in FY20 to 69.8% in FY22. Their share climbed from 26.9% in FY20 to 33.5% in FY22 by originations volume. This is attributable to increase in average ticket size of private banks from 47.1 lakh to 150.5 lakh from FY20 to FY22. Public sector banks and NBFCs had a decline in market share during this period. The average ticket size for public sector banks in FY22 is 28.6 lakh, for NBFCs it is 32.1 lakh, for foreign banks it is 502.6 lakh, and for other lender types it is 26.1 lakh.

Geographically, the top 10 states account for 90% of originations value in FY22. The top three states --Maharashtra, Tamil Nadu, and Delhi-- make up 64% of the total originations value in FY22. According to originations volume, Maharashtra, Tamil Nadu, and Uttar Pradesh are the top three states and with an average ticket size of 256.5 lakh in FY22, Maharashtra has the largest MSME loan portfolio. 

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