Finance Ministry Secures USD 1 Billion from IFC to Expand Long-Term MSME Credit through SIDBI

8 September 2026National

The Ministry of Finance secured USD 1 billion from the International Finance Corporation to help Indian banks and financial institutions extend more long-term credit to small businesses. IFC has already provided USD 500 million to SIDBI from its own resources, with the remaining USD 500 million to be raised through SIDBI's lender syndicate; the facility has been swapped into rupees using the RBI's special swap window. Most of the money will be on-lent by SIDBI directly to MSMEs for up to seven years with a moratorium, funding machinery purchase, modernisation and expansion in auto components, engineering goods, electronics, textiles and food processing. It complements the existing ECLGS support.

Static GK

SIDBI was established in 1990 and is headquartered in Lucknow, Uttar Pradesh; Manoj Mittal is its CMD | The IFC, founded 1956 and headquartered in Washington DC, is the private-sector arm of the World Bank Group | ECLGS is the Emergency Credit Line Guarantee Scheme launched in 2020

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