The Tamil Nadu Second Biggest Market for Small Business Credit with an outstanding portfolio of ₹4.21 lakh crore as of June 30, 2025, according to a joint study by SIDBI and CRIF High Mark. The state contributes 9.3% of India’s total small business credit market.
The Tamil Nadu Second Biggest Market for Small Business Credit ranking reflects strong growth. The portfolio grew 15.7% from ₹3.64 lakh crore in June 2024, showing higher demand for loans among micro, small, and medium enterprises (MSMEs).
The SIDBI-CRIF report noted that Tamil Nadu’s business ecosystem drives this momentum, powered by manufacturing, textiles, and services. Analysts say better access to finance helps entrepreneurs expand operations and create jobs.
Experts highlight that Tamil Nadu’s steady rise in lending makes it a key hub for MSME credit in India. With this pace, the state is likely to play an even bigger role in boosting the country’s small business economy.
