India's aggregate small business credit exposure reached Rs 46 lakh crore as of September 30, 2025, marking a 16.2% year-on-year increase, according to a CRIF High Mark-SIDBI report. Active loan accounts grew 11.8% to 7.3 crore, supported by government MSME policies and credit schemes. Portfolio quality improved, with overdue loans declining. Sole proprietors dominate the credit ecosystem, accounting for 80% of credit and 90% of borrowers, with a growing segment of those having an entity presence. Increasing formalization is indicated by new borrowers entering the credit system.