In the last two years the SIDBI has taken several steps to improve credit flow to MSMEs across India. These steps are part of the broader government effort to revive the credit ecosystem after the slowdown caused by global uncertainties.
Key Developments
- From 01‑04‑2024 to 29‑07‑2026, 71 new SIDBI branches were opened to reach major MSME clusters.
- As of 31‑03‑2026, the direct credit portfolio rose to ₹ 51,687 crore, a 36.8% year‑on‑year increase.
- Refinance outstanding grew to ₹ 4,50,571 crore, up 16.9% YoY, supporting Primary Lending Institutions (PLIs) in extending loans.
- Launch of a co‑lending product with NBFCs to serve new and smaller MSMEs.
- Co‑lending arrangements with Regional Rural Banks (RRBs) started in FY 2025‑26 to reach untapped rural areas.
- Introduction of the ECLGS 5.0 in May 2026, offering up to 20% additional credit on peak working‑capital balances.
- Launch of the GST Sahay app for invoice‑based small‑value credit to micro‑enterprises.
Important Facts
- Additional credit under ECLGS 5.0 is capped at ₹ 2,55,000 crore for MSMEs, non‑MSMEs and scheduled passenger airlines.
- Guarantee coverage is 100% for most borrowers; for scheduled passenger airlines it is 90% on fund‑based credit and 100% on total peak credit.
- SIDBI’s Prayaas Scheme targets informal micro‑entrepreneurs, especially women and the poor.
- All initiatives were highlighted by Minister of State for Finance Shri Pankaj Chaudhary in the Ra