Banks in Gujarat disbursed ₹3,79,535 crore in credit to micro, small and medium enterprises (MSMEs) during 2025-26, surpassing the State Level Bankers' Committee (SLBC) annual target of ₹3,10,917 crore by ₹68,618 crore, according to data released ahead of National Small Industry Day on 30 August. The disbursement stood at 122.07% of the annual target — underscoring the scale of formal bank credit now flowing into the state's MSME sector.

Scale of Lending

Gujarat currently has more than 33 lakh MSME units registered on the Udyam portal, making it one of India's most densely registered small-business ecosystems. The latest SLBC figures confirm that lending to these enterprises went substantially beyond the target fixed for the year, marking a significant expansion in institutional credit access for small businesses across the state.

The data were released as access to finance continues to be a central pillar of Gujarat's support framework for small businesses, which contribute to investment, entrepreneurship, employment, and industrial activity.

What Chief Minister Patel Said

Chief Minister Bhupendra Patel, while presiding over the 190th meeting of the SLBC in Gandhinagar, stressed that banks must ensure credit reaches businesses and other beneficiaries at the last mile. He highlighted the banking sector's broader role in India's economic trajectory.

'The banking sector has a key role to play as India moves towards becoming the world's third-largest economy under Prime Minister Narendra Modi's leadership,' Patel said. He urged banks to ensure easy and timely access to credit for MSMEs, women entrepreneurs, rural artisans, small farmers, and other underserved sections.

Digital Credit Assessment Model

Public sector banks introduced a computer-based Credit Assessment Model (CAM) in 2025 to reduce dependence on conventional paperwork and manual verification. Under the system, digitally available information — including KYC details, GST filing records, electronically verified bank statements, income tax returns, and credit history — is used for loan appraisal.

The digital process allows eligible MSMEs to apply for loans using a phone or computer without visiting a bank branch, with in-principle approval possible quickly in eligible cases. The system also integrates government-backed schemes such as the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), enabling small businesses to access credit without pledging property or other assets as collateral.

Broader Context and What's Next

This comes amid a national push to deepen formal credit penetration among smaller enterprises, many of which have historically relied on informal lending channels. Notably, the SLBC had reviewed banking-sector performance in Gujarat for 2025-26 at its June meeting, recording strong overall growth in banking business across the state.

As Gujarat marks National Small Industry Day on 30 August, the latest lending figures place institutional finance at the centre of the state's MSME agenda, with the banking sector being called upon to extend credit beyond established businesses to smaller entrepreneurs and other underserved sections.