Govt strengthens MSME financing: SIDBI opens 71 branches, launches expanded credit schemes
New Delhi: The Centre on Tuesday said it has stepped up efforts to improve credit access for micro, small and medium enterprises (MSMEs), with SIDBI expanding its footprint and the launch of ECLGS 5.0, which aims to facilitate ₹2.55 lakh crore in additional credit.
In a written reply to the Rajya Sabha, Minister of State for Finance Pankaj Chaudhary said the Small Industries Development Bank of India (SIDBI) opened 71 new branches between April 2024 and July 2026 to strengthen its presence in key MSME clusters.
SIDBI’s direct credit portfolio rose 36.8% year-on-year to ₹51,687 crore as of March 31, 2026, while its refinance portfolio grew 16.9% to ₹4.5 lakh crore, boosting lending capacity for banks and other financial institutions.
The bank has also expanded co-lending arrangements with NBFCs and Regional Rural Banks, launched the Prayaas Scheme for informal micro-enterprises, and introduced the GST Sahay app to provide invoice-based digital credit to small businesses.
The government also rolled out Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 in May 2026, under which eligible MSMEs can avail additional loans of up to 20% of their peak working capital outstanding, backed by 100% government guarantee. The scheme is expected to generate ₹2.55 lakh crore in additional credit for MSMEs, other businesses and scheduled passenger airlines.
