India’s MSME (Micro, Small, and Medium Enterprises) sector continues to expand rapidly, playing a vital role in the nation's economic growth. However, despite its potential, access to formal credit remains limited, particularly for loan amounts under ₹10 lakh. This gap presents a significant growth opportunity for Non-Banking Financial Companies (NBFCs)—especially through Loan Against Property (LAP) in the micro-LAP segment.
Key Industry Insights
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The MSME LAP market grew from ₹7.5 lakh crore in 2022 to ₹11.3 lakh crore by September 2024, marking an impressive 50% increase.
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The micro-LAP segment alone witnessed 60% growth during the same period.
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NBFCs now command a 45% market share in the sub-₹10 lakh LAP category, highlighting their pivotal role in supporting underserved MSMEs.
What’s Next?
Market projections estimate that MSME LAP Assets Under Management (AUM) held by NBFCs will reach ₹5.3 lakh crore by FY2026. This upward trend signals a robust lending environment for financial institutions willing to tap into this segment with the right strategy.
Why This Matters for NBFCs
If you currently operate an NBFC—or are planning to start one—now is the time to align your strategy with this evolving market:
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✔️ Expand lending focus into underserved MSME credit segments
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✔️ Develop agile, tech-driven micro-LAP products
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✔️ Strengthen compliance frameworks to meet regulatory expectations
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✔️ Use data-driven credit models to manage risk and scale efficiently
Need Expert Guidance?
Whether you're setting up a new NBFC, scaling your MSME lending portfolio, or ensuring compliance readiness—
📞 Contact us for a free consultation: +91 93113 47006