Business Funding in Focus: MSMEs Look to Credit as Growth Plans Accelerate
New Delhi, September 17, 2026: Access to business finance continues to remain an important consideration for India’s micro, small and medium enterprises (MSMEs), as businesses look for capital to support expansion, working capital, technology upgrades and other growth requirements.
Recent data from TransUnion CIBIL shows that balances for business-oriented loans taken by individual borrowers grew 1.8 times between March 2023 and March 2026, compared with 1.5 times growth for entity borrowers. The data points to continued demand for formal credit among entrepreneurs and small-business owners.
The lending environment is also seeing greater focus on improving MSME access to credit. The Reserve Bank of India has highlighted the role of fintech in helping bridge the MSME credit gap, including through technology-enabled lending and broader financial inclusion.
For growing businesses, additional funding can support requirements such as inventory purchases, machinery, new locations, employee expansion and technology investments. However, entrepreneurs are increasingly encouraged to consider borrowing alongside cash-flow requirements and existing financial commitments.
RBI guidance also states that banks have been advised to take credit decisions on loan applications up to ₹25 lakh from MSE borrowers within 14 working days, subject to the applicable framework.
As businesses prepare for their next stage of growth, evaluating funding requirements, repayment capacity and suitable loan structures can remain an important part of financial planning.
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