Gujarat MSMEs Receive Rs.3.79 Lakh Crore Bank Credit

GANDHINAGAR: Gujarat’s small and medium businesses are getting a major financial boost, with banks disbursing ₹3.79 lakh crore in credit to MSMEs during 2025-26. The amount was 22% higher than the annual target, underlining the strong demand for business finance across the state.

According to State Level Bankers Committee (SLBC) data, banks had set a target of ₹3,10,917 crore for MSME lending. They eventually disbursed ₹3,79,535 crore, achieving 122.07% of the target. The lending was ₹68,618 crore above the target.

The figures assume added significance as India observes National Small Industry Day on August 30. The day highlights the role of small businesses in investment, jobs and economic growth.

Gujarat has more than 33 lakh MSMEs registered on the Udyam portal. Easy access to finance is therefore critical for thousands of entrepreneurs seeking to expand operations, buy equipment, manage working capital and create jobs.

Chief Minister Bhupendra Patel said the banking sector would be crucial to India’s economic ambitions. He urged banks to improve access to credit for businesses and communities that often face financing challenges.

“As India moves towards becoming the world’s third-largest economy, the banking sector has an important role to play,” Patel said. He called for last-mile credit for MSMEs, women entrepreneurs, rural artisans and small farmers.

Digital System Makes MSME Loans Easier

The lending push is also being supported by technology. Public sector banks introduced the Credit Assessment Model (CAM) in 2025 to simplify business loan processing.

The system uses verified digital information such as GST filings, bank statements, income tax returns, KYC details and credit history. This reduces paperwork and allows banks to assess businesses using their existing financial data.

MSMEs can apply for loans through a phone or computer without visiting a bank branch. In-principle approval can also be generated quickly in eligible cases.

The system can further connect eligible borrowers with government-backed schemes such as CGTMSE, helping some small businesses obtain loans without offering property as collateral.

The state government sees stronger bank financing as an important pillar of Gujarat’s industrial ecosystem. With more than 33 lakh registered MSMEs, improved digital lending could help businesses access working capital faster and support expansion.

The record lending above the target also signals continued banking confidence in Gujarat’s entrepreneurial base. For small businesses, easier and quicker access to formal credit could become a key driver of growth, employment and investment in the years ahead.