Mexico has 5.4 million micro, small, and medium enterprises (MSMEs), of which 95.5% are micro, 3.8% are small, and 0.7% are medium-sized. In 2023, only 10.7% of MSMEs had access to financing from any source, according to the 2024 Economic Censuses conducted by the National Institute of Statistics and Geography (INEGI).
In 2024, the average interest rate for MSME loans was 15.59%, representing a decrease of 0.1 percentage points compared to the previous year, in line with the Bank of Mexico’s monetary policy of reducing basis points in the interbank interest rate, which translated into improved credit conditions for MSMEs. Among firms, the interest rate varied depending on the loan amounts and the size of the borrowing company. For large enterprises, the average interest rate was 10.71%, meaning that the interest rate differential for MSME loans was 4.88 percentage points.
By the end of 2024, the banking loan portfolio for MSMEs reached 565.4 billion Mexican pesos, equivalent to 13.04% of outstanding commercial loans. This portfolio increased by 40.660 billion pesos between 2023 and 2024. On the demand side, 10.7% of MSMEs obtained financing in 2023. Among the main barriers to accessing commercial bank credit, 27% of MSMEs that did not secure a loan reported the high cost of credit as the primary obstacle, according to the 2024 Economic Census.
Regarding MSME non-performing loans, the rate stood at 3.4% in both 2023 and 2024, the lowest level since data collection began, indicating an improvement in the financial stability of MSMEs.
With the change of government in October 2024, the Mexican Government began implementing various strategies to boost financing, including the “Plan México,” a strategy that sets a goal of providing financing to 30% of SMEs by 2030. To achieve this goal, the plan proposes agreements between the Government of Mexico, the Bank of Mexico, and the Mexican Banking Association (ABM) to increase SME financing through preferential interest rates.
Also, the institutional framework on the domestic financial market has allowed the entrance of several Fintech institutions1, not only as payment aggregators but as non-banking lenders. This phenomenon has contributed to increasing competition and generating a market environment that eases access to funding, particularly in areas where private banking has no coverage. However, there is still room for these entities to improve the credit conditions for MSMEs in particular in the offer of longer loan maturities and lower interest spreads.