₹5,000 Crore Equity Support to SIDBI for MSME Credit Expansion
On 21 January 2026, the Union Cabinet approved equity support of ₹5,000 crore to SIDBI to strengthen its capital base and enhance credit flow to MSMEs. KEY FACTS: - Total equity infusion: ₹5,000 crore in 3 tranches - Tranche 1 (FY25-26): ₹3,000 crore at book value ₹568.65/share - Tranche 2 (FY26-27): ₹1,000 crore - Tranche 3 (FY27-28): ₹1,000 crore - Disbursing agency: Department of Financial Services (DFS) - Current MSME beneficiaries: 76.26 lakh (end of FY 2025) - Target: 102 lakh by end of FY 2028 (+25.74 lakh new) - Employment generation: Estimated 1.12 crore jobs (avg 4.37 per MSME) - Purpose: Maintain healthy CRAR, collateral-free digital credit, venture debt
- Union Cabinet approved ₹5,000 crore equity support to SIDBI on 21 January 2026 to strengthen its capital base and enhance credit flow to MSMEs.
- Infusion in 3 tranches: ₹3,000 crore (FY25-26 at book value ₹568.65/share), ₹1,000 crore (FY26-27), and ₹1,000 crore (FY27-28).
- Target: Increase MSME beneficiaries from 76.26 lakh (end FY 2025) to 102 lakh by end FY 2028, adding 25.74 lakh new beneficiaries.
- Estimated to generate 1.12 crore jobs at an average of 4.37 jobs per MSME.
- Purpose includes maintaining healthy CRAR, enabling collateral-free digital credit, and providing venture debt; disbursed by Department of Financial Services.
What is the ₹5,000 Crore Equity Support to SIDBI scheme?
It is a Union Cabinet-approved equity infusion of ₹5,000 crore to SIDBI to strengthen its capital base and expand credit flow to MSMEs, approved on 21 January 2026.
How will the ₹5,000 crore be disbursed?
The equity infusion will be released in 3 tranches: ₹3,000 crore in FY25-26 at book value ₹568.65 per share, ₹1,000 crore in FY26-27, and ₹1,000 crore in FY27-28.
Which ministry implements this SIDBI equity support scheme?
It is implemented by the Ministry of Finance through the Department of Financial Services (DFS), which acts as the disbursing agency for the equity infusion to SIDBI.
What are the target beneficiary numbers for MSMEs under this scheme?
The current MSME beneficiaries stand at 76.26 lakh at the end of FY 2025, with a target of 102 lakh by end of FY 2028, adding 25.74 lakh new MSME beneficiaries.
What employment impact is expected from this equity support?
The scheme is estimated to generate about 1.12 crore jobs, based on an average of 4.37 jobs per MSME, while also enabling collateral-free digital credit and venture debt.
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