New Delhi, August 4, 2026 (Yes Punjab News)
The Small Industries Development Bank of India (SIDBI) has undertaken a series of initiatives over the past five years to improve credit access for Micro, Small and Medium Enterprises (MSMEs), including the opening of 71 new branches across the country between April 1, 2024, and July 29, 2026, the Centre informed Parliament.
In a written reply in the Rajya Sabha, Minister of State for Finance Pankaj Chaudhary said the new branches have been established to expand SIDBI’s presence in key MSME clusters and enhance the availability of direct credit to enterprises.
The minister said SIDBI’s direct credit outstanding portfolio rose to Rs 51,687 crore as of March 31, 2026, compared to Rs 37,781 crore a year earlier, registering a year-on-year growth of 36.8 per cent.
The bank has also strengthened refinance support to Primary Lending Institutions (PLIs) to improve the flow of credit to MSMEs. Its refinance outstanding portfolio increased to Rs 4,50,571 crore as of March 31, 2026, from Rs 3,85,327 crore on March 31, 2025, reflecting an annual growth of 16.9 per cent.
To widen financial inclusion, SIDBI has introduced co-lending arrangements with Non-Banking Financial Companies (NBFCs) to provide affordable loans to smaller and first-time MSME borrowers. During FY 2025-26, it also initiated co-lending partnerships with Regional Rural Banks (RRBs) to improve credit delivery in underserved and untapped regions.
Among its targeted initiatives, SIDBI has launched the Prayaas Scheme to facilitate affordable credit for informal micro-entrepreneurs, particularly women and economically weaker sections. It has also introduced the GST Sahay app, enabling micro-enterprises to access small-value, invoice-based digital credit.
The government has further strengthened MSME financing through the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0, introduced in May 2026. Under the scheme, eligible MSMEs can obtain additional credit of up to 20 per cent of their peak fund-based working capital outstanding during the fourth quarter of FY 2025-26, backed by a 100 per cent government guarantee for lending institutions in case of default.
For scheduled passenger airlines, the scheme offers 90 per cent guarantee coverage, while permitting additional credit of up to 100 per cent of their combined peak fund-based and non-fund-based credit outstanding during the same period.
According to the government, ECLGS 5.0 is expected to facilitate an additional credit flow of Rs 2.55 lakh crore to MSMEs, other eligible businesses and scheduled passenger airlines.
FOLLOW NOW
