SIDBI’s 71 new branches opened across India to service enterprises
The Government has introduced Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 in May 2026, giving Micro, Small and Medium Enterprises (MSMEs) additional credit up to 20% of the peak fund-based working capital outstanding during the fourth quarter of FY 2025–26, the Minister of State in the Ministry of Finance Pankaj Chaudhary has told Rajya Sabha on 4 Aug.
The scheme provides 100% 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%.
However, the scheduled passenger airlines are eligible for additional credit up to 100% 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.255,000 crore is envisaged for MSMEs, non-MSMEs and scheduled passenger airlines.
The Minister also updated the house on some major initiatives have been undertaken by Small Industries Development Bank of India (SIDBI) during the last five years to improve the flow of credit to MSMEs across the country.
These include the following initiatives:
Subsequent to Union Budget Announcement FY 2024-25, SIDBI has opened 71 new branches across India from 1 April 2024 to 29 July 2026 to expand its reach to serve major MSME clusters and provide direct credit to MSMEs.
As on 31 March 2026, SIDBI’s direct credit outstanding portfolio stands at Rs.51,687 crores, as against Rs.37,781 crores as on 31 March 2025, registering a Y-o-Y growth of 36.8%.
The Bank also provides refinance assistance to augment resources of Primary Lending Institutions (PLIs) to increase their flow of credit to MSMEs. As on 31 March 2026, SIDBI’s refinance outstanding portfolio stands at Rs.450,571 crore, as against Rs.385,327 crore as on 31 March 2025, a Y-o-Y growth of 16.9%.
SIDBI has launched a product on 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/ unserved MSMEs. During FY 202526, the Bank initiated co-lending arrangements with Regional Rural Banks (RRBs) to strengthen credit delivery and broaden financial access in underserved and untapped areas.
Prayaas Scheme has also been launched by SIDBI to facilitate access to affordable credit to informal micro-entrepreneurs/ micro-enterprises (IMEs), especially women and poor.
SIDBI has launched a GST Sahay app for ‘on tap’ invoice-based (cash flow based) small value credit to micro enterprises using trade data and digital frameworks. Fiinews.com
