Maharashtra Leads in MSME Sector Loans

Pune, 01st July 2025: As the nation recently celebrated MSME Day to acknowledge the contribution of Micro, Small and Medium Enterprises (MSMEs)1 to India’s economic growth, TransUnion CIBIL shines a spotlight on Maharashtra’s dynamic role in this vibrant sector. The MSME sector in the state reinforces its position as India’s MSME credit powerhouse, driving consistent credit growth and disciplined borrowing patterns across the micro, small, and medium enterprise spectrum.

According to data reported to TransUnion CIBIL by credit institutions, Maharashtra accounted for 18.9% of the overall portfolio by balance as of March 2025 in the borrower segment of with aggregate credit exposure from ₹10 crore to ₹50 crore. Balance-level delinquency (measured as 90 days or more past due or loans reported as sub-standard) stood at 1.4%, close to the national mark of 1.5%. The data confirms stable repayment behavior among larger enterprises. The state accounted for 15% of balances in the borrower segment of entities with aggregate credit exposure from ₹1 crore to ₹10 crore. The delinquency rate as of March 2025 was at 1.8%, slightly above the national average of 1.5% for this segment, yet still within a healthy range.

In the borrower segment with entities up to ₹1 crore, Maharashtra accounted for a share of 12.2% of total balances. Between March 2020 and March 2025, growth in portfolio balances in this segment has averaged 11%. Balance-level delinquency was 3.4% as of March 2025, marginally higher than the national average of 3.1%, for this segment signaling room for tighter credit monitoring.

Manufacturing at 35%, accounted for highest share loan originations by value in quarter ending March 2025. Long term loan was the preferred product availed (22% of originations), pointing to fresh capacity building in manufacturing and allied sectors.

Maharashtra’s MSME sector combines scale with sound repayment patterns. Ensuring this leadership position will be key for the state going ahead as it moves to the next stage of growth.