Mumbai: Union Finance Minister Nirmala Sitharaman on Monday directed SIDBI and other bankers to tailor their repayment structure according to the nature and scale of the businesses.
Addressing the SIDBI Foundation Day Programme in Mumbai, Union Finance Minister said, "My message to SIDBI and to every banker here is that standard products cannot serve non-standard businesses."
She added, "A farmer linked enterprise does not earn every month. A resort does not earn evenly through the year. A government exporter waits for payment after shipment. A small auto component supplier waits for invoice clearance. A woman entrepreneur may have regular transactions yet no property in her name. Then why should all of them be given the same repayment structure?"
She said that the SIDBI should restructure its repayment strategies and lead with need-based repayment systems.
READ: Fuel shock continues: Petrol, diesel prices hiked again; 4th increase in 2 weeks
"Credit must be designed around the business cycle of the enterprise. Today's launches by SIDBI are tailored to address the real needs of the MSMEs. The real needs such as easier credit, better machines, modern technology, rural enterprise support and also stronger market linkages," she added.
"So, with all these kept in mind, SIDBI has come about with some specific tailormade approaches which can help the beneficiaries or the MSMEs," she further added.
Sitharaman said that MSMEs contribute about 35% of manufacturing, 48% of exports and 31% of GDP with over 7.47 CR entrepreneurs and they employ over 32 crores people in this country.
In January, 2026 the Union Cabinet approved an additional equity support of Rs. 5,000 crores to SIDBI. It will enable SIDBI to strengthen its balance sheet and add 25 lakh new MSME beneficiaries by the year 2028, she added.
READ: ‘Shock is coming’: Uday Kotak warning goes viral after gold duty hike
"By improving SIDBI's capital, we're ensuring that the institution can raise lower-cost funds and pass that benefit on to small entrepreneurs through wider, cheaper and more accessible credit," she added.
Sitharaman further added, "To every MSME owner in this room - Government is building the rails. SIDBI isbeing asked to build the imaginative products that run on them. Our banks and our RRBs will carry them the last mile. The job of the MSMEs is to build, to hire, to export, to innovate. We're here to support you."
Ends.
Comments (0)
Be the first to comment!