The Government of India has informed Parliament that the Small Industries Development Bank of India (SIDBI) has recorded strong growth in its direct lending operations for the Micro, Small and Medium Enterprises (MSME) sector during the last five financial years, reflecting increased institutional credit support for small businesses.
As per details shared by the Ministry of Finance in the Lok Sabha, SIDBI's direct loan sanctions increased from ₹6,124 crore in FY 2021-22 to ₹24,323 crore in FY 2025-26. During the same period, the bank's outstanding direct lending portfolio expanded from ₹13,930 crore to ₹39,895 crore, demonstrating sustained growth in financing extended directly to MSMEs.
The Ministry stated that the expansion is part of SIDBI's comprehensive approach to improving MSME financing through direct lending, refinance assistance, indirect credit support, co-lending arrangements, and technology-enabled financial solutions.
As of March 31, 2026, SIDBI's indirect lending portfolio stood at approximately ₹5.24 lakh crore. Through refinance and funding support provided to commercial banks, Non-Banking Financial Companies (NBFCs), Small Finance Banks (SFBs), and Microfinance Institutions (MFIs), the institution continues to facilitate wider credit availability for MSMEs across the country.
SIDBI has also strengthened digital financing by enabling credit through the GST Sahay platform and by participating in all five Trade Receivables Discounting System (TReDS) platforms, allowing eligible MSMEs to access quicker financing against their receivables.
To improve credit outreach, the bank has established co-lending partnerships with NBFCs and Regional Rural Banks (RRBs), supporting enterprises that may have limited access to conventional bank financing.
In addition, SIDBI is promoting MSME ecosystem development through the SIDBI Cluster Development Fund (SCDF), which provides financial assistance for infrastructure development in industrial clusters. The bank is also implementing the Modernization of Rural Enterprises (MoRE) Programme, designed to improve the productivity, competitiveness, and financial inclusion of rural non-farm enterprises through funding support and capacity-building initiatives.
The information was provided by Finance Minister Nirmala Sitharaman in a written reply to the Lok Sabha, outlining the Government's ongoing measures to strengthen credit access and financial support for India's MSME sector. CA Sansaar