Finance Minister Unveils New MSME Initiatives To Boost Credit Access & Modernisation

New Delhi, May 26 (KNN) Union Finance Minister Nirmala Sitharaman on Monday launched a series of initiatives aimed at expanding credit access, supporting rural enterprise modernisation, and deepening financial infrastructure for micro, small and medium enterprises (MSMEs) at the Foundation Day event of the Small Industries Development Bank of India (SIDBI) in Mumbai.

Key Initiatives Launched

Among the new initiatives, Sitharaman launched the SIDBI–RRB Co-Lending Portal, a digital joint lending platform. The platform combines the MSME financing expertise of SIDBI with the grassroots reach of Regional Rural Banks (RRBs) to improve credit access in semi-urban and rural areas.

The other initiatives unveiled by the minister  include SIDBI MachFin Mart, MORE (Modernisation of Rural Enterprises) initiative, and Credit Cards for Micro Enterprises programme of Department of Financial Services (DFS).

MachFin Mart (SIDBI MSME Exchange – Machinery Portal) is a digital marketplace that enables MSMEs to procure machinery through a structured platform offering price discovery, product standardisation and integrated loan sanctioning, thereby supporting capital investment and technology adoption.

MoRE (Modernisation of Rural Enterprises) is a cluster-based programme targeting 10,000 rural micro and artisanal units over three years, providing both credit and non-credit support to upgrade non-farm rural enterprises such as jaggery units, oil expellers, pottery units, flour mills and brass clusters.

Additionally, the Credit Cards for Micro Enterprises scheme, launched by the DFS, offers revolving credit of up to Rs 5 lakh to Udyam-registered micro enterprises, backed by 75 per cent guarantee coverage and no mandatory primary collateral, with the objective of easing access to working capital.

SIDBI's Evolving Mandate

Sitharaman outlined a broader vision for SIDBI's future role, calling on the institution to evolve from being solely a lender to becoming a market maker and risk-sharing partner for India's MSME and startup ecosystem. 

She stressed the importance of deepening venture capital and debt markets for startups to ensure access to patient, flexible, and growth-oriented capital. 

DFS Special Secretary Sanjay Lohiya highlighted the need for risk-sharing frameworks, co-lending models, and digital transformation to address emerging MSME challenges including supply chain disruptions, technological change, and climate transition. 

(KNN Bureau)