SIDBI expands credit to Indian MSMEs with new branches and record lending

The Small Industries Development Bank of India (SIDBI) has dramatically increased its direct financing to micro, small and medium enterprises (MSMEs) over the past five years. Direct credit sanctions rose from Rs 6,124 crore in FY 2021‑22 to Rs 24,323 crore in FY 2025‑26, and the outstanding direct credit portfolio grew to Rs 39,895 crore.

From April 2024 to July 2026 SIDBI will open 71 new branches across the country to serve major MSME clusters. As of 31 March 2026 the direct credit outstanding portfolio stood at Rs 51,687 crore, a 36.8% year‑on‑year increase, while the refinance portfolio reached Rs 4,50,571 crore, up 16.9%.

The bank has also launched co‑lending arrangements with non‑banking financial companies and regional rural banks, introduced the Prayaas Scheme for informal micro‑entrepreneurs, and rolled out the GST Sahay digital app for invoice‑based credit. In May 2026 the Emergency Credit Line Guarantee Scheme 5.0 was introduced, offering MSMEs additional credit of up to 20% of peak working‑capital balances with full guarantee coverage for most lenders.