Mon Sep 08 05:25:32 UTC 2025: **News Article:**

**Tamil Nadu Holds Second Largest Share of Small Business Credit in India**

**Chennai, September 8, 2025** – Tamil Nadu continues to be a key player in India’s small business credit market, holding the second-largest share nationally, according to a new report by the Small Industries Development Bank of India (SIDBI) and credit bureau CRIF High Mark. As of June 30, 2025, the state boasted an outstanding small business credit portfolio of ₹4.21 lakh crore, marking a significant 15.7% increase from ₹3.64 lakh crore in the previous year.

The report defines “Small Business” as those with total credit exposure not exceeding ₹5 crore from formal lenders. The data analyzed Enterprises, ‘Sole Proprietors with Entity Presence’ and Sole Proprietors.

Maharashtra currently leads the nation with ₹6.0 lakh crore in outstanding credit. Following Tamil Nadu in the top five are Gujarat (₹3.69 lakh crore), Uttar Pradesh (₹3.61 lakh crore), and Karnataka (₹3.18 lakh crore). Notably, Uttar Pradesh demonstrated the highest year-on-year growth in outstanding portfolio, surging by 20.7%.

While Maharashtra leads in portfolio outstanding and share across all borrower segments, Tamil Nadu secures the second position in the Sole Proprietors and Sole Proprietors with Entity Presence segments, holding shares of 11% and 8.8%, respectively. In the Enterprises segment, Tamil Nadu holds a 7.9% share, placing it behind Gujarat’s 9.7%.

Interestingly, the report highlights a disparity in city-level contributions. While cities like Bengaluru and Hyderabad contribute significantly to their respective state portfolios, Chennai accounts for a relatively smaller portion (10.6%) of Tamil Nadu’s total outstanding small business credit.

Overall, Tamil Nadu’s PAR 91–180 (loans 91 to 180 days past due) stood at 1.7% as of June 2025. This is slightly higher than the national average, which declined to 1.5% in June 2025 from 2.0% in June 2023. The report signals the continued importance of Tamil Nadu in the Indian small business lending landscape.

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