Sitharaman Unveils New SIDBI Schemes for MSME Financing

Finance Minister Nirmala Sitharaman on Tuesday launched a set of new initiatives by the Small Industries Development Bank of India (SIDBI) aimed at improving access to finance, technology and market support for micro, small and medium enterprises (MSMEs). The announcements were made during SIDBI’s 37th Foundation Day celebrations held in Mumbai.

The initiatives include the SIDBI RRB Co-Lending Portal, SIDBI MachFin Mart, the MoRE (Modernisation of Rural Enterprises) programme, and a Credit Cards for Micro Enterprises scheme introduced by the Department of Financial Services.

The RRB Co-Lending Portal is designed to enable SIDBI to partner with Regional Rural Banks to expand credit access for MSMEs in rural and underserved areas. Meanwhile, MachFin Mart will function as a digital marketplace to help small businesses purchase machinery, offering features such as price discovery, standardisation and embedded loan approvals.

The MoRE initiative aims to support 10,000 rural micro and artisanal enterprises over the next three years through cluster-based interventions. In addition, the newly launched credit card scheme will offer working capital support of up to INR 5 lakh to Udyam-registered micro enterprises, enabling faster and easier access to funds.

Speaking at the event, Finance Minister Sitharaman highlighted SIDBI’s role as a key market-maker in MSME financing, particularly in light of the government’s INR 5,000 crore capital infusion into the institution.

Sanjay Lohiya, Special Secretary at the Department of Financial Services, said, “SIDBI has built an institution that commands credibility across the financial sector, and we look forward to its continued role in strengthening MSME finance and supporting broader development goals.”

SIDBI Chairman and Managing Director Manoj Mittal said the initiatives mark a step forward in transforming MSME financing through digital tools and partnerships. “The focus is on improving credit access, delivery efficiency and promoting technology adoption,” he said, adding that efforts are also aimed at modernising rural enterprises to make them more competitive and productive.

SIDBI, established in 1990, continues to play a central role in supporting MSMEs across India through credit and development programmes.