New Delhi, India: The Centre has outlined a series of measures to strengthen credit availability for micro, small and medium enterprises (MSMEs), highlighting the expansion of SIDBI’s branch network and the rollout of the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 to improve financing access across the sector.
The Ministry of Finance said the Small Industries Development Bank of India (SIDBI) has significantly expanded its outreach by opening 71 new branches across the country between April 1, 2024 and July 29, 2026. The expansion is aimed at improving direct credit delivery to MSMEs and increasing the bank’s presence in major industrial clusters.
As of March 31, 2026, SIDBI’s direct credit outstanding portfolio stood at ₹51,687 crore, compared with ₹37,781 crore a year earlier, registering a 36.8% year-on-year growth. The bank’s refinance outstanding portfolio also increased to ₹4,50,571 crore from ₹3,85,327 crore, reflecting an annual growth of 16.9%.
To widen financial inclusion, SIDBI has introduced several initiatives, including co-lending arrangements with non-banking financial companies (NBFCs) and regional rural banks to improve credit access in underserved areas. The bank has also launched the Prayaas Scheme to support informal micro-entrepreneurs, particularly women and economically weaker sections, along with the GST Sahay application that enables invoice-based working capital loans using digital trade data.
The government also highlighted the introduction of Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 in May 2026. Under the scheme, eligible MSMEs can obtain additional credit of up to 20% of their peak fund-based working capital outstanding during the fourth quarter of FY 2025-26.
ECLGS 5.0 provides 100% guarantee coverage to Member Lending Institutions (MLIs) for eligible MSME borrowers. The scheme also covers scheduled passenger airlines with 90% guarantee coverage. Overall, the programme envisages an additional credit flow of ₹2.55 lakh crore for MSMEs, non-MSMEs and scheduled passenger airlines.
The information was shared by Minister of State for Finance Pankaj Chaudhary in a written reply in the Rajya Sabha.
Source: This article is based on an official press release issued by thePress Information Bureau (PIB), Ministry of Finance, Government of India
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