SIDBI Organizes Conference with Regional Rural Bank Heads to Expand MSME Co-Lending Facility
The Small Industries Development Bank of India (SIDBI) held a conference with heads of Regional Rural Banks (RRBs) to expand its MSME co-lending facility. The Secretary of the Department of Financial Services emphasized the need to accelerate credit access for MSMEs in rural areas and improve financial awareness. The digital platform aims to streamline loan processing and distribution, making it more efficient and transparent for small businesses.
VIMARSHNAARAD TVThe Small Industries Development Bank of India (SIDBI) organized a conference in New Delhi on August 25, 2026, with the heads of Regional Rural Banks (RRBs). The primary focus of the meeting was the expansion of the SIDBI-RRB MSME co-lending facility. The session was chaired by Sanjay Lohia, Secretary of the Department of Financial Services (DFS).
The conference was attended by SIDBI Chief Executive Director Manoj Mittal, senior officials from NABARD, and the chairpersons of all 28 RRBs. The DFS Secretary emphasized the importance of boosting credit access for MSMEs in rural and semi-urban areas, noting that combining SIDBI's expertise with the extensive reach of RRBs would be highly beneficial.
RRBs were encouraged to focus on MSME lending to diversify their loan portfolios. It was noted that rule-based underwriting would help banks maintain asset quality. The Additional Secretary of the DFS highlighted the significance of using MSME cluster data to adopt a targeted approach for credit distribution.
RRBs were also urged to actively participate in employment fairs organized by state governments to promote financial awareness among MSMEs. The Joint Secretary suggested that RRBs should set specific targets for branches to provide loans through this co-lending facility.
The co-lending platform developed by SIDBI is a fully digital system. It makes the credit process paperless and rapid, significantly reducing the time required for loan approval and disbursement. Applicants receive notification of in-principle approval shortly after submitting details through the portal.
Digital documentation ensures that customers do not need to visit branches repeatedly, as loan amounts are credited directly to their accounts. Following successful pilot implementations in three RRBs, the program is now being expanded to more banks. This initiative is expected to significantly address the credit needs of micro and small enterprises in rural and semi-urban regions.