Cabinet greenlights ₹5,000cr boost for MSME lending via SIDBI
The government just approved a ₹5,000 crore equity infusion into SIDBI to help more micro, small, and medium enterprises (MSMEs) get loans.
The funds will roll out over three years—₹3,000 crore in 2025-26 and ₹1,000 crore each in the next two years—giving SIDBI more muscle to support small businesses nationwide.
Why does this matter?
SIDBI is a development bank that provides financial assistance and loan products to MSMEs.
Thanks to this move, SIDBI's reach is set to jump from 76 lakh borrowers in 2025 to over 1 crore by 2028.
That means nearly 26 lakh new entrepreneurs could get access to funding—and with MSMEs already employing about 30 crore people across India, it could spark over a crore new jobs by FY28.
Big picture: More credit = more growth
Total sector credit exposure reached ₹35.2 lakh crore as of March 31, 2025 (up 13% year-on-year).
This infusion isn't just about numbers—it's part of a bigger push to fuel India's economic growth and job creation through thriving small businesses.