Business Loans to Entrepreneurs Grew Faster Than Those to Commercial Entities Over Three Years

• Individual borrower business-oriented loans balances grew 1.8 times between March 2023 and March 2026, outpacing entity borrower balance growth at 1.5 times.
• Substantial scope for expansion in MSME credit access, with nearly 41% commercial enterprises having formal credit access in entity or individual capacity
• Overall commercial portfolio remained stable at 1.8% as of March 2026. The analysis identified emerging signs of risk in specific borrower segme

India’s commercial credit market is seeing a shift in borrower composition, with individual borrowers with business-oriented loans now forming a meaningful share of overall commercial credit balances, according to the latest MSME Pulse released by TransUnion CIBIL and the Small Industries Development Bank of India (SIDBI).

Loans to individuals accounted for 28% of outstanding commercial balances, while loans to entities accounted for 72%. Individual borrower balances grew 1.8 times during the three-year period between March 2023 and March 2026, compared with 1.5 times growth in entity borrower balances during the same period.

The report finds that outstanding commercial credit stood at ₹65.8 lakh crore as of March 2026, across 4.4 crore active commercial trades. This is a year-over-year (YoY) growth of 14% compared to the total outstanding credit of Rs 57.9 lakh crore as of March 2025.

Chart 1: Individual Business Borrowers Credit Profile

Individual Borrowers Form a Sizeable Business Credit Segment

As of March 2026, 2.8 crore individual borrowers had active business-oriented loans. Of these borrowers, 43% were early-stage as commercial entities with credit history of less than 24 months, highlighting a borrower segment that is active in business-purpose borrowing while still being relatively new as commercial entities. Almost half (48%) the share of the total Non-Banking Financial Companies’ (NBFCs) Commercial Balances pertained to Individual Borrowers. All other lender categories have a much lower share, with private banks the second largest at 24% of the commercial balance share among individual borrowers.

The individual borrower segment has been increasingly visible across key commercial credit products. Loans against property formed the largest share of outstanding balances for this borrower group, followed by commercial vehicle loans and unsecured business loans. At a product level, individual borrowers accounted for 68% of loan against property balances, 76% of commercial vehicle balances and 67% of unsecured business loan balances. The report notes that loans against property, commercial vehicle loans, unsecured business loans, term loans, overdraft and cash credit together formed ~87% of outstanding commercial credit balances.

Bhavesh Jain, MD & CEO, TransUnion CIBIL, said: “In India’s MSME economy, the entrepreneur and the enterprise are often deeply connected, particularly in the early years of business growth. A proprietor may borrow in an individual capacity, but the credit is frequently linked to business activity, working capital needs or asset creation. This makes individual business borrowing an integral part of how commercial credit is evolving, and it deserves to be understood within the broader MSME credit landscape.

 
As MSMEs grow, their credit needs also change, from small-ticket working capital to larger, sector-led funding requirements. The real opportunity for the credit ecosystem lies in understanding this progression with greater clarity, especially as borrowers move from individual business borrowing to entity-level credit, or from trade-led borrowing to manufacturing-led expansion.”

Formal Credit Access Remains a Large Opportunity

The share of new-to-credit (NTC) entities in origination volumes declined from 52% in FY23 to 42% in FY26, indicating that the pace of first-time formal credit onboarding has moderated in recent years. 

Chart 2: NTC Opportunity Sizing

NTC originations among commercial entities were concentrated in smaller ticket sizes. The report finds that 60% of these originations were in the ₹2 lakh to ₹10 lakh ticket-size segment, while 34% were in the ₹10 lakh to ₹2 crore segment. It also notes that 75% of ₹2 lakh to ₹2 crore NTC entity borrowers had prior retail credit experience, showing that first-time entity borrowers may enter formal commercial credit through different borrower pathways.

Emerging Pockets Of Risk in Specific Borrower Segments

While overall commercial credit portfolio performance remained stable as of March 2026, the report indicates elevated delinquency levels in certain borrower and product segments. Delinquency (measured as share of balances in 90+ Days Per Due (DPD) or classified sub-standard) in unsecured business loans to entities stood at 7.2%, up 274 basis points (bps) over three years. The ₹2 lakh to ₹10 lakh entity borrower segment recorded delinquency of 5.6%, up 111 basis points over the same period.

Signs of stress were also seen in early delinquencies (measured as accounts ever in 90+ DPD in first 12 months since origination) as well, for both unsecured business loans to entities and for the ₹2 lakh to ₹10 lakh entity borrower segment. For originations in the March 2025 ending quarter, for unsecured business loans to entities, early delinquencies were 2.9 times higher, while for the ₹2 lakh to ₹10 lakh entity borrower segment, early delinquencies were 2.1 times higher than the overall early delinquency of 3.4% for loans to entities originated in the same period.

Sectoral Patterns Point to Different MSME Credit Structures. 

The report shows that commercial credit patterns vary across sectors by exposure size and geography. Textiles, professional services, wholesale trade and infra-linked industries are led by the ₹10 lakh to ₹2 crore exposure segment. Maharashtra and Gujarat the leading states across key industries such as textiles, food processing. The report identifies manufacturing as a sector with strong concentration in industrial clusters.
Trade showed a different pattern, with retail trade anchored in the ₹2 lakh to ₹10 lakh exposure segment and wholesale trade led by the ₹10 lakh to ₹2 crore segment basis share of entities with live loans. Uttar Pradesh ranked first in both retail and wholesale trade counts, while Uttar Pradesh, and West Bengal appeared among the other leading states. In professional services, the report shows a higher share of entities in small exposure segments of ₹10 lakh to ₹2 crore, with Maharashtra, Karnataka and Tamil Nadu among the leading states.

Mr Jain said: “MSMEs remain central to India’s enterprise base, employment creation and regional economic growth. As more small businesses seek formal credit, it is important to recognise the diversity within the MSME segment. A micro enterprise seeking working capital, a trade borrower operating in a local market and a manufacturing unit looking to scale will have different credit needs, business cycles and growth paths. Expanding formal credit access for MSMEs has to go hand in hand with a deeper understanding of these differences. A more granular view across sectors, ticket sizes and geographies can help the ecosystem serve smaller and emerging enterprises while maintaining a focus on sustainable credit growth.”

About TransUnion CIBIL

India’s pioneer information and insights company, TransUnion CIBIL, makes trust possible by ensuring each person and business entity is reliably represented in the marketplace. We do this by providing an actionable view of consumers and businesses, stewarded with care.

We have developed technology and innovative solutions across core credit, risk and advanced analytics. As a result, consumers and businesses can transact with confidence and achieve great things. We call this Information for Good® — and it leads to economic opportunity, great experiences, and personal empowerment for millions of people and commercial enterprises in India.

We serve the financial sector as well as commercial enterprises and individual consumers. Our customers in India include banks, credit institutions, NBFCs, housing finance companies, microfinance companies, telecom companies and insurance firms.

For more information visit www.transunioncibil.com

About SIDBI

Since its formation in 1990, SIDBI has been touching the lives of citizens across various strata of society through its integrated, innovative and inclusive approach for all round development of MSMEs. SIDBI has directly or indirectly through various credit and developmental measures impacted the myriad Micro, Small and Medium Enterprises (MSMEs) in the country, whether they are traditional, domestic small entrepreneurs, bottom-of-the-pyramid entrepreneurs, or high-end knowledge-based entrepreneurs.
For more information, please visit: https://www.sidbi.in/

Standard Chartered Processes Real Time Remittance Payments to India within Seconds

Standard Chartered today announced that it has processed a remittance payment under the new retail payments scheme from Swift. In a world-first, Westpac (Australia) sent a transaction to India via Standard Chartered via this scheme. Leveraging its advanced capabilities in India, Standard Chartered enabled near real-time credit to the beneficiary bank, demonstrating a major leap in the country’s payment ecosystem.

This transaction was completed in 37 seconds end-to-end. This reiterates the Bank’s ability to complete an end-to-end transaction with any participating bank in India in record time using Swift rails. As well as the fastest possible settlement time, Swift’s retail payments scheme delivers benefits to both senders and receivers of international payments, including end-to-end transparency so that a payment can be tracked, upfront certainty of cost with no hidden fees, and no surprise FX deductions, so that the amount that is sent is exactly what lands in the beneficiary’s bank account.

At an event hosted by Swift in collaboration with the Indian Banks’ Association, focused on modernising payments, P D Singh, CEO, India & South Asia, Standard Chartered was felicitated to mark the achievement as the first bank in India to process a payment under the Swift scheme.

P D Singh, CEO, India & South Asia, at Standard Chartered, said, “Our cross-border and network capabilities have been the cornerstones of the Bank’s sharp focus across key markets including India. It is indeed a moment of great pride for Standard Chartered, India, to be globally the first bank to process a payment within seconds under Swift’s retail payment scheme. We’re enabling people all over the world to send money back to India just as easily as they can send money domestically.

With this initiative they will get a truly best-in-class payments experience backed by the security of the banking ecosystem, and we’re delighted to be working with the industry to make it possible,” Singh added.

Kiran Shetty, Chief Executive of Swift India and South Asia, said, “This demonstrates the power of Swift’s cutting-edge capabilities; leveraging its existing global rails to drive real transformation in cross-border payments. For India, the world’s largest recipient of remittances, where they play a significant role in GDP, this evolution is particularly critical.

By enabling greater speed, transparency, and an improved customer experience, bringing cross-border payments closer to the simplicity of domestic UPI; Swift is helping unlock a new standard for remittances. Standard Chartered Bank’s initiative is a strong proof point that this shift is not only possible, but already underway in India, with the potential to redefine how remittances are experienced. It is also highly encouraging to see the continued regulatory push in India supporting this direction, further accelerating the move towards a faster, more transparent, and customer-centric payments ecosystem anchored by Swift,” Shetty added.

India’s First Private Orbital Rocket, Skyroot’s Vikram-1, to Launch Between July 12 and August 4

The mission is named Aagaman, Sanskrit for "Arrival". It marks the arrival of India's private orbital launch capability for the world. The primary objective of capturing critical flight data foundational to creating a high-cadence, on-demand launch capability for the fast-growing global space economy.

Skyroot's Vikram-1 Launch Vehicle Fully Stacked at First Launch Pad at SDSC-SHAR

Skyroot Aerospace today announced the opening of the launch window for the maiden test flight of its Vikram-1 launch vehicle — India’s first privately developed orbital-class rocket. Test Flight-1 is targeted for no earlier than July 12, subject to the completion of assembly and testing operations at the launch site in SDSC-SHAR, Sriharikota, and weather, safety, and range clearance. The window extends till 4 August.

The single most important objective of Mission Aagaman is to capture the real in-flight performance data from every system on Vikram-1. We want to understand how the vehicle performs from lift-off through every phase of ascent. This data cannot be fully replicated through ground testing. It will help us validate our designs and inform subsequent vehicle development as we build a reliable, high-cadence commercial launch programme. The moment Vikram-1 lifts off, India's private space industry will cross a threshold it has never crossed before.

— Pawan Kumar Chandana, Co-founder & CEO, Skyroot Aerospace.

Mission Aagaman, meaning “the arrival”, marks Skyroot’s second mission following the successful suborbital flight of Vikram-S, the first private rocket to reach space from Indian soil, on 18 November 2022.

This will be partially commercial flight, with the company planning to commence full commercial flights after one or two successful demonstrations to orbit. Joining the test flight is a mix of domestic and international customers.

From a dream to build a launch vehicle in India to now attempting an orbital flight has been a journey like no other. With Vikram-S in 2022, we validated the foundation of our technology stack; With Vikram-1, we take our biggest step, yet toward a reliable, high-cadence launch programme built in India, for India and the world. This mission is designed as both a technology demonstration and a learning mission. This has been made possible by the collective confidence of the Government of India, IN-SPACe, ISRO, our investors, our customers and a dedicated team of 1000+ individuals.

— Naga Bharath Daka, Co-founder & COO, Skyroot Aerospace

All stages of Skyroot's Vikram-1 have been successfully integrated and stacked at the launch pad.

The mission will gather critical data across propulsion, stage separation, guidance, navigation, control and overall vehicle performance, supporting the evolution of Skyroot into a commercially operational launch company.

Vikram-1 is a seven-storey-tall, multi-stage orbital launch vehicle built with an all-carbon composite structure and powered by in-house developed propulsion systems, including 3D-printed engines and high-thrust solid-fuel rocket boosters. Designed to carry small satellites weighing up to 350 kg to Low Earth Orbit (LEO), Vikram-1's maiden mission will target an orbit at an altitude of 450 km with a 60-degree orbital inclination. The flight-ready rocket was unveiled by Prime Minister Shri Narendra Modi in November 2025 during the inauguration of Skyroot’s Infinity campus.

For India, the ability to reach orbit reliably and frequently is a strategic capability that only a handful of nations possess. Today, access to space remains a major bottleneck, with satellite operators often waiting months or even years for a launch opportunity. Backed by IN-SPACe's efforts to open India's space sector and ISRO's technical infrastructure, Skyroot's Cab to Space model aims to provide dedicated and precise access to orbit.

Satellites support services that millions rely on every day, from agriculture and fisheries to disaster management, communications, connectivity, navigation and national security. Frequent and affordable access to orbit is what enables these capabilities to be built and scaled within India.

The economic opportunity is equally significant. India's space economy is expected to grow from around USD 8.4 billion today to USD 44 billion by 2033. Indigenous launch capability will be a critical enabler of this growth, unlocking opportunities for India's rapidly expanding private space ecosystem. The emergence of companies such as Skyroot, India's first spacetech unicorn, signals both the scale of investor confidence in the sector and the growing maturity of the country's commercial space ambitions.

About Skyroot Aerospace

Skyroot Aerospace is a private space launch company, building the Vikram-series of launch vehicles to provide on-demand and dedicated access to space for small satellite operators worldwide.

Founded by Pawan Kumar Chandana and Naga Bharath Daka, the company aims to democratize space access by designing, developing and launching a family of launch vehicles.

Skyroot made history in 2022 with the launch of Vikram-S, India's first privately built rocket to reach space. The company is now preparing for the maiden flight of Vikram-1, its orbital launch vehicle, which will mark India's first private attempt at an orbital mission.

Vikram-1 is designed to deploy small satellites of up to 350 kg to Low Earth orbit. Built with an all-carbon composite structure and powered by in-house developed solid and liquid propulsion systems — including 3D-printed engines — the rocket is engineered for rapid manufacturing and high launch cadence. Skyroot's technology stack spans carbon composite rocket structure, and solid (Kalam series), liquid (Raman series), and cryogenic (Dhawan series) propulsion systems, all developed in-house at its 250,000 sq. ft. Max-Q and Infinity campuses in Hyderabad, Telangana.

Valued at over USD 1.1 billion, Skyroot is backed by marquee global investors including GIC, Temasek, Sherpalo Ventures, and funds managed by Blackrock. Its mission: to make spaceflight as regular, reliable, and affordable as air travel — Opening Space for All.

Sierra EV Sparks Tata’s Premium Charge: YES Securities Report Highlights Bold Strategy for 2x Growth by FY31

Tata Motors Passenger Vehicles (TMPV) has unveiled the Sierra EV, marking a decisive step in its premium electric vehicle (EV) strategy. The launch underscores Tata’s intent to move beyond affordability-driven positioning and instead emphasize technology, performance, and premium ownership value.

In a detailed company update released by YES Securities, Tata Motors Passenger Vehicles (TMPV) has been spotlighted for its bold entry into the premium EV SUV segment with the launch of the Sierra EV. The report emphasizes that Tata is shifting its strategy away from affordability-driven competition and toward a technology and performance-led positioning, supported by advanced features, dual powertrain options, and a lifetime battery warranty. With introductory pricing in the ₹18–26 lakh range, the Sierra EV is positioned to reinforce Tata’s premium brand perception while aligning with its long-term ambition of achieving 2x industry growth and 20% market share by FY31.

The launch of Sierra EV at premium pricing depicts TMPV’s strategy of rather than competing purely on affordability, it is slowly shifting focus towards a technology and performance-led positioning supported by extensive features and a lifetime battery warranty.

While the pricing versus rivals appears to be higher, the Yes Securities report said that the premium is largely justified by the product's differentiated appeal. In line with Harrier EV, it expects the Sierra to have 30-40% powertrain mix. This should strengthen Tata's brand perception in premium EVs and support margins over the medium term. Early customer acceptance and sustained production ramp-up will remain key monitorable, particularly as competition intensifies across the Rs18–26 lakh EV SUV category.

Premium Positioning and Market Strategy

The Sierra EV enters the aspirational mid-SUV segment with introductory prices between ₹18.79–25.99 lakh, positioning it above rivals such as Maruti Suzuki’s E Vitara (₹15.99–20 lakh) and Hyundai’s Creta EV (₹18.03–24.7 lakh). TMPV is betting on differentiated appeal through:

• Price Range: ₹18.79–25.99 lakh, positioned above rivals like Maruti Suzuki’s E Vitara and Hyundai’s Creta EV.
• Performance: 50% higher power and torque compared to ICE variants, AWD dual-motor option.
• Battery: 63 kWh and 75 kWh packs, real-world range of 460–530 km.
• Warranty: Lifetime battery warranty (15 years), first in India.

This premium approach is expected to strengthen Tata’s brand perception in EVs and support margins, even as competition intensifies in the ₹18–26 lakh EV SUV category.

EV bookings have increased 3x in the past 2–4 months. This is not a blip, it is a structural change, management noted, highlighting rising consumer confidence.

Industry Outlook and TMPV Ambitions

By FY31, the Indian PV industry is expected to reach 6.4 million units, with:

• SUV dominance: >60% of volumes.
• EV penetration: 15–20%.CNG + EV combined share: >45%.
• Median ASP: ~₹15 lakh, reflecting premiumization.

TMPV’s ambition is to outpace industry CAGR (~6–7%) with ~15% growth, targeting:

• 1.2 million annual sales.
• ~20% market share.
• Expanded portfolio: 15 nameplates, including six new launches and 20+ facelifts.
• 80%+ addressable market coverage by FY31.

Competitive Edge: Specifications Snapshot

The Sierra EV stands out among peers on several parameters:

Specification	Sierra EV	E Vitara	Creta EV	Harrier EV
Battery (kWh)	63–75	49–61	42–51.4	65–75
Range (km)	565–665	550	390–473	538–627
Motor Power (bhp)	209–238	142–172	133–169	235–390
Torque (Nm)	315	195.5	255	504
Warranty	15 yrs	8 yrs	8 yrs	10 yrs
Price (₹ lakh)	18.79–25.99	15.99–20.01	18.03–24.70	21.49–30.23

Manufacturing & Network Expansion

TMPV is scaling up production capacity from 0.9 million to 1.3 million units annually through plant expansions (Sanand, Panapakkam) and supplier localization. It also plans:

• Production capacity to scale from 0.9m to 1.3m units annually.
• 2x growth in sales network and 3x growth in service network by FY31.
• First Indian automaker to use locally assembled semiconductor chips.
• Cost reduction strategy: 5–6% savings in ICE, lower battery costs in EVs, platform sharing.

Financial Outlook

TMPV’s financial trajectory reflects strong growth potential:

• Net Income: ₹3,356 bn (FY26) → ₹4,704 bn (FY28).
• Adj. EPS: ₹4.0 (FY26) → ₹48.6 (FY28).
• RoE: 1.3% (FY26) → 14% (FY28).
• P/E: 86.9x (FY26) → 7.2x (FY28).

YES Securities maintains an ADD rating with a target price of ₹405, implying a +16.5% potential return.

Conclusion

The Sierra EV is more than a product launch—it is Tata Motors’ statement of intent to dominate the premium EV SUV space. With performance-led engineering, lifetime battery assurance, and aggressive portfolio expansion, TMPV is positioning itself to capture a significant share of India’s evolving EV market.

Ericsson Launches Nationwide 5G Innovation Challenge for Societal Impact

• The initiative seeks to accelerate the 5G ecosystem in India to build national capability in support of the country’s ‘Digital India’ Agenda.
• Open to startups, researchers, academic institutions and innovators nationwide. 
• Award winning solutions will be showcased at the India Mobile Congress 2026

Ericsson (NASDAQ: ERIC) today announced the launch of its ‘Ericsson Innovation Challenge’, a nationwide initiative designed to identify and support innovative technology solutions that address critical societal challenges through the application of 5G and technologies such as Artificial Intelligence (AI), Cloud and Internet-of-Things (IoT). Launched in partnership with IAN Mentoring and Incubation Services and TiE Delhi-NCR, the Ericsson Innovation Challenge seeks to bring together India's startup ecosystem, research community, academic institutions and technology innovators to develop and deploy solutions that can create measurable impact across sectors critical to the country's development.

This initiative has been specifically designed for India and forms part of Ericsson's global 150-year jubilee celebrations, reflecting the company's long-standing commitment to innovating to create positive societal impact.

The Ericsson Innovation Challenge will focus on solutions that address public-benefit challenges in areas such as rural technology and digital inclusion, healthcare access and diagnostics, climate and environmental sustainability, agricultural productivity and food security, and advanced manufacturing. Through the initiative, Ericsson aims to strengthen national capability – in building the use of 5G technologies while encouraging innovation that delivers meaningful outcomes for communities across India.

Nitin Bansal, Managing Director, Ericsson India, says, "For 150 years, Ericsson has pushed the boundaries of innovation to connect people, transform industries and positively impact the communities in which we operate. As we celebrate this milestone, we are proud to launch the Ericsson Innovation Challenge, an initiative that brings together innovators, researchers and entrepreneurs in India to leverage 5G technology in order to solve real-world challenges.”

“India has a dynamic innovation ecosystem that can leverage 5G and other emerging technologies to address critical needs across healthcare, agriculture, sustainability, manufacturing and digital inclusion. Through this initiative, we hope to support solutions that can deliver measurable impact, strengthen the 5G ecosystem and contribute to India's digital future", he added.

"At IAN, we have always backed founders who see opportunity where others see obstacles. The Ericsson Innovation Challenge does exactly that — it asks India's innovators to look at our most critical societal challenges and answer them with the power of 5G. As partners in this initiative, IAN brings not just capital but deep mentoring expertise to help the most promising solutions mature into ready investment ventures. We are delighted to provide a platform that connects these innovators with the support, guidance and networks they need to turn bold ideas into lasting impact.”- Padmaja Ruparel, Co-Founder- IAN Group and Senior Managing Partner - IAN Alpha Fund. 

“India's entrepreneurs have never lacked ambition — what they need is the right platform, the right mentors and the right moment. The Ericsson Innovation Challenge brings all three together. TiE Delhi-NCR is proud to partner in identifying and nurturing solutions that use 5G to address India's most pressing needs across healthcare, agriculture, sustainability, food security and digital inclusion. Through our mentorship network and rigorous jury process, we will help ensure that the ideas which rise to the top at India Mobile Congress 2026 are not just innovative, but ready to scale and create lasting impact." said Geetika Dayal, Director General, TiE Delhi-NCR. 

About the Ericsson Innovation Challenge

The Ericsson Innovation Challenge is open to researchers, faculty members, technology transfer offices, incubatees of recognised incubators, and Indian startups so that they can develop 5G technology solutions that are innovative, ready for deployment and have measurable societal impact in India. Participants will be evaluated by a high-profile jury on the potential societal impact, innovation, scalability and sustainability of their solution, as well as its alignment with the identified problem area selected by the participant.

Applications will open on 2nd July 2026 and close on 22nd July 2026. Following a multi-stage evaluation and mentoring process led by industry experts, investors and ecosystem leaders, shortlisted participants will gain access to mentorship, venture-building support and engagement opportunities with Ericsson and its partners, TiE Delhi-NCR and IAN. The top teams will showcase their solutions before industry leaders, policymakers, investors and technology experts, with the winners being recognized at the final awards ceremony at India Mobile Congress 2026.

Interested applicants can learn more about the eligibility criteria and application process for the Ericsson Innovation Challenge here