HYDERABAD: Business-purpose credit to individual entrepreneurs in Telangana grew at a compound annual growth rate (CAGR) of 26% over three years, outpacing the 13% growth in lending to micro businesses, according to a joint report by the National Small Industries Corporation (NSIC) and TransUnion CIBIL.
Outstanding micro-business credit in the State stood at Rs 1.74 lakh crore as of June 2026, the report said.
The study identified scope to expand formal business lending, noting that 19.6 lakh entrepreneurs had never borrowed as business entities despite having established individual credit profiles. Of these, 62% had CIBIL scores above 730, suggesting potential eligibility for enterprise financing, subject to lenders’ assessment criteria.
Loans against property (LAP) accounted for 53% of outstanding micro-business credit in Telangana, the highest share among the states analysed. Trade contributed 33% of the outstanding credit, while manufacturing accounted for 17%.
Non-banking financial companies (NBFCs) held nearly 38% of outstanding balances among individual business borrowers in Telangana. Commercial vehicle loans and property-backed loans were among the key financing products used by entrepreneurs.