New Delhi, Aug. 3 -- The Small Industries Development Bank of India (SIDBI) has significantly increased its direct lending to micro, small and medium enterprises (MSMEs) over the past five years, the Finance Ministry said.

In a written reply in the Lok Sabha, Finance Minister Nirmala Sitharaman noted that direct loan sanctions rose from Rs 6,124 crore in FY2021-22 to Rs 24,323 crore in FY2025-26. During the same period, SIDBI's outstanding direct credit portfolio grew from Rs 13,930 crore to Rs 39,895 crore, indicating a sharp expansion in financial support to the sector.

Indirect lending creates wider credit flow

Sitharaman highlighted that SIDBI's lending strategy combines direct credit with indirect financing through refinance and o...