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GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF FINANCIAL SERVICES
LOK SABHA
STARRED QUESTION NO. *219
ANSWERED ON MONDAY, 3rd AUGUST, 2026/ 12 SHRAVANA, 1948 (SAKA)
Credit Flow to Micro, Small and Medium Enterprises
*219. SHRI YOGENDER CHANDOLIA:
SHRI RAJIV PRATAP RUDY:
Will the Minister of FINANCE be pleased to state:
(a) whether Small Industries Development Bank of India (SIDBI) has undertaken major initiatives
during the last twelve years to improve the flow of credit to Micro, Small and Medium Enterprises
across the country;
(b) if so, the State-wise details thereof, specifically in the Pali Lok Sabha Constituency in Rajasthan;
(c) whether the Government has operationalised Emergency Credit Line Guarantee Scheme (ECLGS)
5.0 and if so, the details of additional credit flow targeted thereunder, including guarantee coverage
for MSMEs and support to the aviation sector;
(d) the details of the number of MSME units provided with loans, guarantees and other financial
assistance through SIDBI and the ECLGS in Ratlam, Jhabua and Alirajpur districts of Madhya Pradesh
during the last two years, district-wise; and
(e) whether the Government is implementing any special scheme to provide accessible credit to MSME
units located in tribal and aspirational areas and if so, the details thereof?
ANSWER
THE FINANCE MINISTER
(SMT. NIRMALA SITHARAMAN)
(a) to (e) A Statement is laid on the Table of the House.
*****STATEMENT REFERRED TO IN REPLY TO PARTS (a) to (e) OF LOK SABHA
STARRED QUESTION NO. *219 ANSWERED ON 03rd AUGUST, 2026, REGARDING
‘CREDIT FLOW TO MICRO, SMALL AND MEDIUM ENTERPRISES’ BY SHRI
YOGENDER CHANDOLIA AND SHRI RAJIV PRATAP RUDY, HON’BLE MEMBERS OF
PARLIAMENT
(a) Major initiatives undertaken by Small Industries Development Bank of India (SIDBI) to improve
credit flow are illustrated as follows: -
i. Indirect Lending:
Financial assistance through refinance and onlending is extended to Banks, NBFCs, SFBs and MFIs
which is used by these institutions for financing of MSMEs. This creates a multiplier effect and
increases the flow of credit to MSMEs. As on 31.03.2026, the total indirect lending portfolio of SIDBI
is ₹5.24 Lakh crore.
ii. Direct Lending:
Branch Banking: Financial loan assistance is extended to MSMEs directly through SIDBI
branch network of 167 branches. Additionally, microlending is undertaken through specific
schemes by leveraging the network of partner institutions where loans are facilitated to business
entities, especially small and women entrepreneurs.
Lending through Partnerships
- Micro lending– Additionally, microlending is undertaken through specific schemes by
leveraging the network of partner institutions where loans are facilitated to business
entities, especially small and women entrepreneurs.
- Co-lending: The Bank launched a product on co-lending arrangement with NBFCs and
RRBs to provide affordable credit to smaller MSMEs, especially new borrowers, as part of
its effort to reach underserved/unserved MSMEs.
Digital Lending
- GST Sahay: SIDBI 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.
- TReDS: SIDBI is participating in all the 5 TReDS platform to provide timely finance to
MSMEs.
iii. SIDBI Cluster Development Fund (SCDF):
To promote cluster development, SCDF has been setup to provide low-cost funding to State
Governments for Infrastructure Development in MSME Clusters.
iv. Sectoral Development work/ Coordination Among StakeholdersTo modernise rural non-farm enterprises and improve their productivity and competitiveness, SIDBI
is implementing the Modernization of Rural Enterprises (MoRE) Programme, which provides both
financial assistance and capacity-building support through a cluster-based approach.
(b) As informed by SIDBI, the state-wise data in respect of refinance to Banks is not maintained by
SIDBI. Hence, state-wise data for the entire refinance portfolio of SIDBI to various lending institutions
is not available. However, state-wise details of direct credit provided by SIDBI to MSMEs over the
last five years are placed at Annexure I. Lok Sabha Constituency- wise data is not maintained. Data
pertaining to direct credit of Pali district of Rajasthan is placed at Annexure II.
(c) 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.
(d) The details of direct credit provided by SIDBI to MSMEs and details of guarantees issued to
MSMEs under ECLGS 5.0 in Ratlam, Jhabua and Alirajpur districts of Madhya Pradesh are placed at
Annexure III.
(e) As informed by Ministry of Tribal Affairs, National Scheduled Tribe Finance and Development
Corporation (NSTFDC), an apex organization under the Ministry of Tribal Affairs, provides
concessional financial assistance to eligible Scheduled Tribe beneficiaries for undertaking income
generating activities and self-employment. The major schemes implemented include Term Loan
Scheme, Adivasi Mahila Sashaktikaran Yojana (AMSY), Micro Credit Scheme for Self Help Groups
(MCF) and Adivasi Shiksha Rrinn Yojana (ASRY). These schemes provide financial support for
income generation, entrepreneurship development and education of Scheduled Tribe beneficiaries.
Further, the Ministry of Tribal Affairs launched the Venture Capital Fund for Scheduled Tribes (VCF-
ST) in 2024 to promote entrepreneurship among Scheduled Tribe communities through concessional
financial assistance of ₹10 lakh–₹5 crore at interest rates as low as 3.75% to 4% per annum. The
scheme also provides incubation support of up to ₹30 lakh for technology-oriented and innovative
start-ups promoted by ST entrepreneurs.
*****Annexure-I
Annexure-I as referred to in part (b) of the reply to the Lok Sabha Starred Question No. *219
State-wise details of direct credit provided by SIDBI to MSMEs over the last five years
(Amount in ₹ crore)
Financial Year 2021-2022
Sl No State Sanctions Disbursement O/S Amt at
No of A/c Amt Amt close of FY
1 Andaman & Nicobar 0 0.00 0.00 0.00
2 Andhra Pradesh 118 116.86 100.63 255.54
3 Assam 7 8.41 2.90 6.93
4 Bihar 12 18.61 13.06 26.10
5 Chandigarh 27 23.90 22.53 65.99
6 Chhattisgarh 36 40.75 28.08 50.42
7 Dadra & Nagar Haveli 10 21.98 22.69 56.19
8 Daman & Diu 5 1.48 1.48 12.45
9 Delhi/NCT of Delhi 289 354.01 291.56 751.35
10 Goa 34 27.25 21.38 47.18
11 Gujarat 979 1329.80 1181.79 3288.68
12 Haryana 477 482.78 450.31 1062.32
13 Himachal Pradesh 37 42.85 37.36 76.04
14 Jammu & Kashmir 0 0.00 0.00 0.07
15 Jharkhand 41 42.90 36.45 72.79
16 Karnataka 267 272.15 233.64 508.31
17 Kerala 170 120.89 122.85 274.72
18 Ladakh 0 0.00 0.00 0.00
19 Lakshadweep 0 0.00 0.00 0.00
20 Madhya Pradesh 123 145.05 135.48 327.72
21 Maharashtra 920 859.58 830.78 1767.69
22 Manipur 1 0.89 0.53 0.70
23 Meghalaya 0 0 0 0
24 Mizoram 0 0.00 0.00 0.00
25 Nagaland 0 0.00 0.00 0.00
26 Odisha 42 31.70 24.23 68.89
27 Puducherry 20 14.70 14.63 40.29
28 Punjab 275 284.94 263.02 588.28
29 Rajasthan 430 372.78 377.67 1188.44
30 Sikkim 0 0.00 0.00 0.00
31 Tamil Nadu 920 960.26 916.07 2047.18
32 Telangana 104 118.91 129.69 335.89
33 Tripura 0 0.00 0.00 0.00
34 Uttar Pradesh 280 282.06 247.78 598.28
35 Uttarakhand 108 114.06 88.82 300.79
36 West Bengal 46 34.62 28.48 111.11
Grand Total 5778 6124.17 5623.89 13930.34(Amount in ₹ crore)
Financial Year 2022-2023
Sl State Sanctions Disbursement O/S Amt at close
No No of A/c Amt Amt of FY
1 Andaman & Nicobar 0 0.00 0.00 0.00
2 Andhra Pradesh 86 144.40 122.61 290.42
3 Assam 7 9.46 8.89 14.43
4 Bihar 7 20.41 11.68 34.97
5 Chandigarh 20 22.40 15.52 47.86
6 Chhattisgarh 33 65.31 42.78 82.02
7 Dadra & Nagar 8 12.79 15.20 52.44
Haveli
8 Daman & Diu 5 6.16 2.74 11.40
9 Delhi/NCT of Delhi 218 464.90 335.54 877.60
10 Goa 24 28.23 25.40 61.88
11 Gujarat 955 1669.86 1337.59 3946.84
12 Haryana 315 465.06 402.44 1149.90
13 Himachal Pradesh 26 34.64 26.50 75.49
14 Jammu & Kashmir 2 7.85 3.66 3.66
15 Jharkhand 71 86.06 74.83 128.47
16 Karnataka 272 434.32 343.67 727.81
17 Kerala 83 96.62 94.53 302.97
18 Ladakh 0 0.00 0.00 0.00
19 Lakshadweep 0 0.00 0.00 0.00
20 Madhya Pradesh 88 154.62 135.22 360.75
21 Maharashtra 733 1146.89 848.45 2094.02
22 Manipur 0 0.00 0.36 0.88
23 Meghalaya 0 0 0 0
24 Mizoram 0 0.00 0.00 0.00
25 Nagaland 0 0.00 0.00 0.00
26 Odisha 73 102.35 71.31 130.95
27 Puducherry 28 50.56 28.67 56.67
28 Punjab 277 404.08 372.18 780.94
29 Rajasthan 427 717.57 506.95 1424.91
30 Sikkim 0 0.00 0.00 0.00
31 Tamil Nadu 845 1279.66 1151.38 2598.34
32 Telangana 63 115.53 83.84 340.09
33 Tripura 0 0 0 0
34 Uttar Pradesh 201 314.73 242.49 647.77
35 Uttarakhand 76 112.90 89.92 279.62
36 West Bengal 36 52.94 43.07 127.53
Grand Total 4979 8020.30 6437.42 16650.63(Amount in ₹ crore)
Financial Year 2023-2024
Sl State Sanctions Disbursement O/S Amt at
No No of A/c Amt Amt close of FY
1 Andaman & Nicobar 0 0.00 0.00 0.00
2 Andhra Pradesh 150 306.56 216.32 424.15
3 Assam 6 12.65 16.41 27.46
4 Bihar 20 50.74 41.99 71.43
5 Chandigarh 13 13.35 19.13 50.34
6 Chhattisgarh 33 61.28 45.29 117.37
7 Dadra & Nagar Haveli 8 14.06 12.81 39.20
8 Daman & Diu 4 2.31 4.49 11.22
9 Delhi/NCT of Delhi 256 639.91 569.27 1192.72
10 Goa 30 27.53 27.69 73.03
11 Gujarat 1545 2878.41 2238.13 5303.52
12 Haryana 457 702.41 589.19 1388.67
13 Himachal Pradesh 45 60.55 48.92 99.98
14 Jammu & Kashmir 5 3.85 4.66 7.43
15 Jharkhand 75 152.04 128.72 227.61
16 Karnataka 454 736.77 583.54 1106.99
17 Kerala 176 223.42 176.36 382.48
18 Ladakh 0 0.00 0.00 0.00
19 Lakshadweep 0 0.00 0.00 0.00
20 Madhya Pradesh 143 261.41 222.34 477.15
21 Maharashtra 946 1589.83 1378.79 2842.18
22 Manipur 0 0.00 0.00 0.67
23 Meghalaya 0 0 0 0
24 Mizoram 0 0.00 0.00 0.00
25 Nagaland 1 2.54 2.54 2.54
26 Odisha 86 168.80 98.08 203.77
27 Puducherry 33 43.02 49.34 87.31
28 Punjab 411 537.14 438.37 993.63
29 Rajasthan 520 777.68 606.06 1730.32
30 Sikkim 1 0.38 0.00 0.00
31 Tamil Nadu 1323 2340.70 1897.50 3753.73
32 Telangana 79 175.93 151.30 401.98
33 Tripura 1 0.46 0.45 0.45
34 Uttar Pradesh 333 461.91 374.78 847.72
35 Uttarakhand 120 203.34 186.74 384.78
36 West Bengal 85 131.97 96.89 197.62
Grand Total 7359 12580.95 10226.10 22447.45(Amount in ₹ crore)
Financial Year 2024-2025
Sl No State Sanctions Disbursement O/S Amt
No of A/c Amt Amt at close
of FY
1 Andaman & Nicobar 0 0.00 0.00 0.00
2 Andhra Pradesh 134 203.73 241.55 560.67
3 Assam 12 31.82 16.22 40.50
4 Bihar 34 62.75 49.33 108.57
5 Chandigarh 26 34.63 26.32 56.71
6 Chhattisgarh 37 87.75 71.64 142.66
7 Dadra & Nagar Haveli 2 2.77 2.85 28.53
8 Daman & Diu 9 16.29 7.30 14.12
9 Delhi/NCT of Delhi 276 644.47 548.35 1416.21
10 Goa 24 24.67 19.63 72.23
11 Gujarat 1721 3773.54 3099.24 7225.59
12 Haryana 565 842.88 725.70 1660.42
13 Himachal Pradesh 50 78.07 53.71 119.38
14 Jammu & Kashmir 6 7.58 5.79 10.77
15 Jharkhand 98 113.58 99.27 287.17
16 Karnataka 544 1084.68 843.37 1621.32
17 Kerala 215 226.95 190.34 465.73
18 Ladakh 0 0.00 0.00 0.00
19 Lakshadweep 0 0.00 0.00 0.00
20 Madhya Pradesh 181 311.77 259.45 594.36
21 Maharashtra 1077 1971.34 1738.05 3727.85
22 Manipur 2 1.82 1.82 2.27
23 Meghalaya 1 0.25 0.25 0.25
24 Mizoram 1 1.60 1.60 1.60
25 Nagaland 10 13.10 12.88 14.94
26 Odisha 104 138.84 123.39 285.84
27 Puducherry 30 29.39 37.99 102.22
28 Punjab 493 619.88 539.97 1206.00
29 Rajasthan 627 953.46 810.31 2117.41
30 Sikkim 0 0.00 0.38 0.31
31 Tamil Nadu 1610 3055.58 2657.53 5354.58
32 Telangana 116 248.57 179.03 475.61
33 Tripura 2 0.36 0.25 0.63
34 Uttar Pradesh 368 639.81 572.40 1168.35
35 Uttarakhand 101 174.42 137.08 428.15
36 West Bengal 105 149.64 130.58 270.65
Grand Total 8581 15545.99 13203.57 29581.60(Amount in ₹ crore)
Financial Year 2025-2026
Sl No State Sanctions Disbursement O/S Amt at
No of A/c Amt Amt close of FY
1 Andaman & Nicobar 0 0.00 0.00 0.00
2 Andhra Pradesh 227 419.16 305.01 690.78
3 Assam 8 21.47 19.67 55.94
4 Bihar 47 71.41 60.85 147.08
5 Chandigarh 17 10.42 9.16 37.73
6 Chhattisgarh 73 242.13 142.44 237.48
7 Dadra & Nagar Haveli 6 10.05 13.31 37.36
8 Daman & Diu 17 34.88 33.09 51.28
9 Delhi/NCT of Delhi 406 1090.66 670.31 1657.90
10 Goa 14 18.62 14.77 66.54
11 Gujarat 2229 5483.94 4148.33 9694.68
12 Haryana 897 1430.52 947.27 2119.61
13 Himachal Pradesh 82 118.13 93.56 187.72
14 Jammu & Kashmir 6 40.07 28.04 40.37
15 Jharkhand 107 137.65 85.91 309.12
16 Karnataka 733 1705.62 1232.77 2412.31
17 Kerala 190 235.46 204.66 533.02
18 Ladakh 0 0.00 0.00 0.00
19 Lakshadweep 0 0.00 0.00 0.00
20 Madhya Pradesh 260 552.27 417.57 817.60
21 Maharashtra 1461 3128.76 2438.69 5113.54
22 Manipur 1 0.54 0.54 2.26
23 Meghalaya 2 0.59 0.28 0.51
24 Mizoram 0 0.00 0.00 1.48
25 Nagaland 0 0.00 0.00 13.10
26 Odisha 151 191.94 136.84 367.64
27 Puducherry 45 93.12 72.07 145.31
28 Punjab 643 1034.12 782.92 1712.01
29 Rajasthan 821 1687.09 1223.31 2877.64
30 Sikkim 0 0.00 0.00 0.23
31 Tamil Nadu 2028 4365.97 3422.73 7382.30
32 Telangana 165 634.66 363.49 760.62
33 Tripura 1 0.15 0.15 0.33
34 Uttar Pradesh 597 1092.70 727.36 1516.73
35 Uttarakhand 134 275.41 228.39 568.66
36 West Bengal 145 195.25 142.27 335.68
Grand Total 11513 24322.76 17965.76 39894.56Annexure-II
Annexure-II as referred to in part (b) of the reply to the Lok Sabha Starred Question No. *219
Details of direct credit provided by SIDBI to MSMEs over the last five years in the Pali district
of Rajasthan
(Amount in ₹ crore)
FY District Sanctions Disbursements Amt O/S Amt at
No of A/c Amt close of FY
2021-22 0 0 0 1
2022-23 1 1 1 1
2023-24 PALI 4 3 2 3
2024-25 4 2 1 4
2025-26 11 8 6 8Annexure-III
Annexure-III as referred to in part (d) of the reply to the Lok Sabha Starred Question No. *219
Details of direct credit provided by SIDBI to MSMEs in Ratlam, Jhabua and Alirajpur
districts of Madhya Pradesh
(Amount in ₹ crore)
2024-25 2025-26
District Wise Number Amount Number Amount
ALIRAJPUR 0 0 0 0
RATLAM 0 0 4 11
JHABUA 0 0 2 30
Note: As informed by SIDBI, the data in respect of refinance to Banks is not maintained by SIDBI.
Hence, state-wise/ district-wise data for the entire refinance portfolio of SIDBI to various lending
institutions is not available.
Details of guarantees issued to MSMEs in Ratlam, Jhabua and Alirajpur districts of Madhya
Pradesh under ECLGS 5.0 in FY 2026-27 (till 30.06.2026)
(Amount in ₹ crore)
District Wise Number of Guarantees Amount
ALIRAJPUR 30 2.38
RATLAM 548 129.38
JHABUA 91 21.99
Note: ECLGS 5.0 has been launched in May 2026.
*****