New Delhi: Centre said it had strengthened SIDBI MSME financing through a series of measures, including the expansion of SIDBI’s branch network, higher direct lending and the launch of the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0. Minister of State for Finance Shri Pankaj Chaudhary shared the details in the Rajya Sabha on Tuesday.
The government said SIDBI opened 71 new branches across the country between April 1, 2024 and July 29, 2026. The expansion followed the Union Budget 2024-25 announcement and aimed to improve access to direct credit in major MSME clusters.
As of March 31, 2026, SIDBI’s direct credit outstanding portfolio reached ₹51,687 crore. It stood at ₹37,781 crore a year earlier, recording a year-on-year growth of 36.8%.
The bank also continued to support Primary Lending Institutions through refinance assistance. Its refinance outstanding portfolio rose to ₹4,50,571 crore as of March 31, 2026, from ₹3,85,327 crore a year earlier, marking a 16.9% year-on-year increase.
ECLGS 5.0 strengthens SIDBI MSME financing
The government introduced ECLGS 5.0 in May 2026 to improve the flow of credit to eligible MSMEs. Under the scheme, eligible borrowers can receive additional credit of up to 20% of their peak fund-based working capital outstanding during the fourth quarter of FY 2025-26.
The scheme offers 100% guarantee coverage to Member Lending Institutions for eligible MSME loans that default. However, scheduled passenger airlines receive 90% guarantee coverage and can access additional credit of up to 100% of their peak total credit outstanding during the same period.
The government said ECLGS 5.0 envisaged an additional credit flow of ₹2.55 lakh crore for MSMEs, non-MSMEs and scheduled passenger airlines.
Meanwhile, SIDBI expanded its co-lending programme with Non-Banking Financial Companies to improve affordable credit for smaller and first-time MSMEs. During FY 2025-26, it also started co-lending arrangements with Regional Rural Banks to improve financial access in underserved areas.
In addition, SIDBI launched the Prayaas Scheme to support informal micro-entrepreneurs, especially women and poor borrowers. The bank also introduced the GST Sahay app to provide invoice-based, cash flow-backed small-value loans to micro enterprises through digital platforms.
