MUMBAI: :Stress is emerging in the micro-borrower segment of the MSME industry, particularly for loans with ticket sizes below Rs 2 crore, even as larger enterprises remain relatively resilient amid geopolitical headwinds, tighter working capital conditions, and global supply chain pressures. The divergence in asset quality across MSME segments has widened, with micro borrowers showing higher delinquency levels than small and medium enterprises. As of April 2026, early-stage delinquencies, (loans that are 31-90 days overdue), stood at 2.7% for micro borrowers. This compared with 1.5% for small enterprises and 0.8% for medium enterprises, indicating uneven stress across borrower categories. The build-up of stress is also visible in hard delinquencies within the micro segment. Loans that are 91-180 overdue rose from 1.1% in March 2026 to 1.4% in April 2026. This suggests stress is translating into severe defaults over time.
