Government Boosts MSME Financing Through SIDBI and ECLGS 5.0

The Ministry of Finance highlighted several steps to strengthen MSME financing. SIDBI opened 71 new branches across India between 1 April 2024 and 29 July 2026 to serve major MSME clusters. Its direct credit outstanding rose 36.8% YoY to ₹51,687 crore as of 31 March 2026, while its refinance portfolio grew 16.9% YoY to ₹4,50,571 crore. SIDBI also launched co‑lending arrangements with NBFCs and RRBs, the Prayaas Scheme for informal micro‑entrepreneurs (especially women), and the GST Sahay app for invoice‑based credit. The Emergency Credit Line Guarantee Scheme (ECLGS) 5.0, introduced in May 2026, offers up to 100% guarantee coverage and envisages an additional ₹2.55 lakh crore credit for MSMEs and related sectors.