NBFCs, SCBs to provide additional MSME credit of Rs 1.54 lakh cr in FY25

The government has set a target for all scheduled commercial banks and Non-Banking Financial Companies (NBFCs) to provide additional MSME credit of Rs 1.54 lakh crore in the current financial year (FY25).

Finance Minister Nirmala Sitharaman outlined the target for total credit growth of Rs 5.75 lakh crore, Rs 6.21 lakh crore, and Rs 7 lakh crore to MSMEs in the financial years 2024-25, 2025-26, and 2026-27, respectively.

At the 'National MSME Cluster Outreach' program held in Bengaluru, which was organized in collaboration with the Department of Financial Services (DFS) under the Ministry of Finance and the Small Industries Development Bank of India (SIDBI), the minister highlighted the important role of Micro, Small, and Medium Enterprises (MSMEs) in driving India's economic growth. She specifically noted their contributions to innovation, job creation, and the country's quest for self-reliance.

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The Finance Minister also engaged with entrepreneurs, sharing insights on how the government and financial institutions can better support their growth and sustainability. She urged banks to go the extra mile in enhancing credit to the MSME sector.

FM Sitharaman also virtually inaugurated six new SIDBI branches in Karnataka, expanding SIDBI’s reach and financial assistance to MSMEs in these clusters.

Additionally, she inaugurated four Nari Shakti Branches of Union Bank of India in Bengaluru, Chennai, Jaipur, and Vishakhapatnam, aimed at empowering women entrepreneurs. She also inaugurated the Learning Centre of Canara Bank at Bengaluru, Bengaluru.

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 FM Sitharaman distributed sanction letters to 11 MSME customers of SIDBI, totaling Rs 25.75 crore, and two sanction letters to MSME customers of the Nari Shakti Branch of Union Bank of India, totaling Rs 11 crore.

During the event, SIDBI signed a memorandum of understanding (MoU) with the Peenya Industries Association to strengthen collaboration in supporting MSMEs through capacity building, credit facilities, and knowledge-sharing.

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