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Tamil Nadu is the second biggest market for small business credit, accounting for 9.3% of the national total, as per a joint report by Small Industries Development Bank of India (SIDBI) and credit bureau CRIF High Mark. As of June 30, 2025, Tamil Nadu had an outstanding small business credit portfolio of about ₹4.21 lakh crore, up 15.7% from ₹3.64 lakh crore as of June 30 2024, the report said. Maharashtra remained the largest market with ₹6.0 lakh crore in outstanding credit, while Tamil Nadu, Gujarat (₹3.69 lakh crore), Uttar Pradesh (₹3.61 lakh crore), and Karnataka (₹3.18 lakh crore) round out the top five by portfolio size. Uttar Pradesh registered highest outstanding portfolio growth of 20.7% on a year-on-year basis. The report defines "Small Business" as those businesses that have an aggregated credit exposure not exceeding ₹5 crore from the formal lending system.