Single‑Owner Enterprises Drive 80% of Credit Growth, LAP Leads Product Mix

Analysis of the FY26 credit landscape reveals that enterprises run by a single individual are the cornerstone of portfolio expansion. They represent 80% of the total small‑business credit exposure and over 87% of all active loan accounts.

Loan‑Against‑Property (LAP) has risen to become the most significant product, now covering 27.1% of the portfolio, up from 25.5% a year earlier. Business loans follow at 24.8%, and working‑capital products at 22.8%.

The prominence of secured credit through LAP underscores the sector’s preference for collateral‑backed financing, especially as MSMEs seek stable funding sources.

State‑level data shows Andhra Pradesh and Uttar Pradesh leading growth, with annual portfolio increases of 16.5% and 18.5% respectively.