SIDBI Expands Nationwide Presence with 71 New Branches; Direct Credit Portfolio Grows 36.8% Y-oY

ECLGS 5.0 Envisages ₹2.55 Lakh Crore Additional Credit With up to 100% Guarantee Coverage for Eligible MSMEs

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 Micro, Small and Medium Enterprises (MSMEs) across the country.

These include the following initiatives:

1. Subsequent to Union Budget Announcement FY 2024-25, SIDBI has opened 71 new branches across India from 01.04.2024 to 29.07.2026 to expand its reach to serve major MSME clusters and provide direct credit to MSMEs.
2. As on March 31, 2026, SIDBI’s direct credit outstanding portfolio stands at ₹ 51,687 crores, as against ₹ 37,781 crores as on 31 March, 2025, registering a Y-o-Y growth of 36.8%.
3. 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, SIDBI’s refinance outstanding portfolio stands at ₹ 4,50,571 crore, as against ₹ 3,85,327 crore as on 31 March, 2025, registering a Y-o-Y growth of 16.9%.
4. 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.
5. Prayaas Scheme has been launched by SIDBI to facilitate access to affordable credit to informal micro-entrepreneurs/ micro-enterprises (IMEs), especially women and poor.
6. 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.

The Government has introduced Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 in May, 2026. Under the scheme, MSMEs are eligible for additional credit up to 20% of the peak fund-based working capital outstanding during the fourth quarter of FY 2025–26.

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 ₹ 2,55,000 crore is envisaged for MSMEs, non-MSMEs and scheduled passenger airlines.  

This information was given by Minister of State in the Ministry of Finance Shri Pankaj Chaudhary in Rajya Sabha today.

MSME credit expansion combines SIDBI lending initiatives with guaranteed additional working-capital facilities for eligible borrowers. MSME credit access is being expanded through SIDBI's branch network, direct lending, refinance support, co-lending arrangements, affordable credit for informal micro-entrepreneurs, and invoice-based digital credit for micro enterprises. Emergency Credit Line Guarantee Scheme 5.0 enables eligible MSMEs to obtain additional credit linked to peak fund-based working-capital outstanding, with full guarantee coverage for member lending institutions against defaults on the additional facility. The scheme also covers scheduled passenger airlines under distinct eligibility and guarantee parameters.