Bank credit to micro, small, and medium enterprises (MSMEs) has been increasing at a faster rate than that to large enterprises across industries, according to the Economic Survey, tabled by Union Finance Minister Nirmala Sitharaman in the Lok Sabha on Friday.
The credit to MSMEs registered a growth of 13% year-on-year (YOY) at the end of November 2024 compared to 6.1% for large enterprises during the same period, noted the Survey.
“Credit growth to the services and personal loans segments also moderated to 5.9 per cent and 8.8 per cent YOY, respectively, at the end of November 2024 in the current financial year. Amongst the services sector, the moderation has been driven by a slowdown in credit disbursal to NBFCs. Vehicle and housing loans drove the moderation in the personal loans segment. In terms of increasing risk weights to non-banking financial companies (NBFCs) and credit cards, RBI’s policy interventions contributed to the moderation of credit growth in those segments,” it said.