Individual biz credit grew at 26% in TG, 25% in AP

Hyderabad: Micro business entrepreneur (MBE) credit markets in Telangana and Andhra Pradesh have reached approximately Rs1.74 lakh crore and Rs1.45 lakh crore in outstanding balances respectively as of June 2026, with business-purpose borrowing by individuals growing significantly faster than lending to micro businesses. Over the last three years, outstanding balances held by individual entrepreneurs expanded at a 26 per cent compounded annual growth rate (CAGR) in Telangana and 25 per cent in Andhra Pradesh, compared with 13 per cent and 11 per cent respectively among micro businesses, reflecting the growing role of individual borrowing in financing entrepreneurial activity across both states. This expansion is also bringing attention to a sizeable opportunity in enterprise-level credit. Approximately 19.6 lakh individual entrepreneurs in Telangana and 23.8 lakh in Andhra Pradesh had never borrowed as enterprises as of March 2026. In Telangana, 62 per cent of these entrepreneurs demonstrated strong creditworthiness, while 61 per cent in Andhra Pradesh had CIBIL scores of above 730.

The micro business credit landscape across Telangana and Andhra Pradesh reflects strong demand for secured financing alongside expanding entrepreneurial activity. Loans against property (LAP) account for 53 per cent of outstanding MBE balances in Telangana, the highest among the states analysed, compared with 41 per cent in Andhra Pradesh.

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The Hans India