New Delhi: Some major initiatives have been undertaken by the Small Industries Development Bank of India (SIDBI) during the last five years to improve the flow of credit to Micro, Small and Medium Enterprises (MSMEs) across the country, the Parliament was informed on Tuesday.
These measures include the opening of 71 new SIDBI branches across India from April 1, 2024 to July 29, 2026 to expand its reach to serve major MSME clusters and provide direct credit to them, Minister of State for Finance Pankaj Chaudhary said in a written reply to a question in the Rajya Sabha.
As on March 31, 2026, the SIDBI’s direct credit outstanding portfolio stands at Rs 51,687 crore, as against Rs 37,781 crore as on March 31, 2025, registering a year-on-year growth of 36.8 per cent.
The bank also provides refinance assistance to augment resources of Primary Lending Institutions (PLIs) to increase their flow of credit to MSMEs. As on March 31, 2026, the SIDBI’s refinance outstanding portfolio stands at Rs 4,50,571 crore, as against Rs 3,85,327 crore as on 31 March, 2025, registering a Y-o-Y growth of 16.9 per cent.
Besides, the SIDBI has launched a product on a co-lending arrangement with Non-Banking Financial Companies (NBFCs) to provide affordable credit to smaller MSMEs, especially new borrowers, as part of its effort to reach underserved MSMEs. During FY 2025-26, the bank initiated co-lending arrangements with Regional Rural Banks (RRBs) to strengthen credit delivery and broaden financial access in underserved and untapped areas.
The Prayaas Scheme has been launched by the SIDBI to facilitate access to affordable credit to informal micro-entrepreneurs, especially women and the poor. A GST Sahay app for ‘on tap’ invoice-based small value credit to micro enterprises using trade data and digital frameworks has also been put in place.
Another measure taken by the government to boost credit to the MSME sector is the introduction of the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 in May, 2026. Under the scheme, MSMEs are eligible for additional credit up to 20 per cent of the peak fund-based working capital outstanding during the fourth quarter of FY 2025–26.
The scheme provides 100 per cent guarantee coverage to Member Lending Institutions (MLIs) towards the amount in default for such additional credit facility extended to the eligible MSME borrowers.
For the scheduled passenger airlines, the guarantee coverage is 90 per cent. However, the scheduled passenger airlines are eligible for additional credit up to 100 per cent of the total peak credit outstanding, both fund-based and non-fund-based, during the fourth quarter of FY 2025-26. Under the scheme, additional credit flow of Rs 2,55,000 crore is envisaged for MSMEs, non-MSMEs and scheduled passenger airlines.
(IANS)
