Micro and Small Enterprises

Expanding Footprint,

Facilitating growth of the MSE sector is crucial to India realising its ambition of becoming a $5-Trillion economy. MSEs are the wheels of the nation, accounting for close to 50% of India’s exports, onethird of its GDP, and nearly onefifth of overall employment.

Accommodative financial schemes from the government, special drives targeting entrepreneurship and skill-based training, efforts around financial sector-led inclusion, and rising digital reach, have created a favourable ecosystem. Ujjivan SFB has been steadily growing its product portfolio for the MSE sector, and enhancing its reach and quality of delivery.

Quick facts

1,710 CR

Gross Loan Book 33% Increase y-o-y

1,087 CR



Collection Efficiency


Total Borrower Base

Highlights of FY 2021-22


In this fiscal, we have achieved our highest-ever disbursement for this segment. The growth has been fairly consistent monthon-month, with the highest disbursement taking place in September 2021.


A line of products has been launched under the CGTMSE* scheme, offering a variety of term loan types and tenures, and addressing different working capital needs. Loans upto ₹2 Crores can be offered to eligible MSMEs against partial collateral security, significantly loosening up capital flows.


The wave of contactless banking touchpoints kicked off during the pandemic has only intensified and digital accretion will be the way forward. Customers are being supported in a variety of ways like vernacular phonebanking, chatbots and remote relationship management.


Reach has been commensurately increased, through a combination of multiple channels. Fintech franchisees and branch banking sourcing channels saw an increase and now collectively contribute to 20% of the loan book.


To quicken loan disbursals and servicing, regional processing hubs have been added across the country in major markets like Ahmedabad, Coimbatore, Patna.


Other forms of digital interventions have become mainstream for instance, eKYC, video-based underwriting, digital loan documentation and have helped to make the whole process quicker, more transparent, and better coordinated.

*Credit Guarantee Fund Trust for Micro and Small Enterprises

Growth of MSEs has always been at the heart of what we do. Digitalisation has greatly improved customer experience and we will be using more digital enablers to expand access of customers to their Ujjivan MSE products through multiple digital touchpoints. The overall experience is likely to be much richer than now. On the collaboration front, we plan to deepen our relationships with strategic fintech players and to also actively contribute to the digital lending ecosystem for MSEs in India.”

Ashim Sarkar

Business Head, Micro & Small Enterprise Loan

Outlook for FY 2022-23

While we continue a high-growth trajectory within this segment, performance over the next few years will also be driven by how effectively we manage relationships with existing customers. Our increasing digital footprint and the accessibility of many services via our digital interface will be key levers for growth. Automation and digitisation will extensively ramp up efficiencies within the organisation as our processes become more quicker, underwriting decisions are aided by analytics and inputs from our data lake help to build a quality portfolio more easily.

Reduction in Turn Around Time and contextual up-sell and crosssell through relationship banking experience will be some of the other gains from digitisation. Plans are also afoot to launch more relevant products within this segment so that customer experience is enhanced and loyalty increases.