Gujarat MSMEs Secure ₹3.79 Lakh Crore Credit, Exceeding Target
By Business Desk
Gujarat MSMEs achieve a landmark Rs 3.79 lakh crore in credit in 2025-26, surpassing targets by 22% thanks to digital lending and enhanced banking support.
Gujarat’s Micro, Small, and Medium Enterprises (MSMEs) achieved a significant financial milestone, with banks disbursing Rs 3.79 lakh crore in credit during 2025–26, significantly surpassing their target. This robust credit flow is a direct result of enhanced banking support, advanced digital lending systems, and a thriving entrepreneurial ecosystem within the state.
Key Financial Metrics for Gujarat MSMEs (2025–26)
- Disbursed Credit: Rs 3,79,535 crore
- Original Target: Rs 3,10,917 crore
- Amount Exceeded: Rs 68,618 crore
- Percentage Above Target: 22%
- Source: State Level Bankers Committee (SLBC) data
How the Credit Assessment Model (CAM) Works
A primary driver behind this success is the Credit Assessment Model (CAM), introduced by public sector banks in 2025. This computer-based system fundamentally changed how MSME loan applications are evaluated, moving away from traditional paperwork.
CAM processes digital footprints, including KYC information, GST filings, bank statements, income tax returns, and an applicant’s credit history. This digital evaluation often provides instant in-principle loan approvals, streamlining the entire process.
Gujarat’s Industrial Policy and Broader Support
Further bolstering the entrepreneurial environment is Gujarat’s Viksit Gujarat Industrial Policy-2026, a comprehensive five-year plan designed to attract substantial investment into the state. This policy focuses on fostering growth across key sectors.
The policy aims to attract Rs 10 lakh crore in investment, specifically targeting 21 priority sectors such as semiconductors, electronics, green energy, and electric vehicles. It offers a flexible “Choose Your Incentive” model, providing capital subsidy, interest subsidy, and power-tariff reimbursement.
Beyond these incentives, the policy also extends crucial support to startups, research and development (R&D) initiatives, skilling programs, and sustainable green practices across various industries.
Government Schemes Enhancing Access
Several government schemes are integrated to broaden credit access, especially for marginalized groups, often through the CAM system. These initiatives ensure that small businesses can secure necessary financing without significant hurdles.
- The Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) enables small businesses to obtain loans without requiring collateral.
- SIDBI expanded its reach by opening 71 new branches between April 2024 and July 2026, increasing accessibility.
- ECLGS 5.0, introduced in May 2026, offers additional credit backed by a 100% government guarantee, further boosting access.
Chief Minister Bhupendra Patel addressed the 190th SLBC meeting in Gandhinagar, emphasizing the banking sector’s vital role in India’s economic growth. He urged banks to enhance their outreach efforts and simplify credit access for currently underserved sections of the economy. This significant announcement coincided with National Small Industry Day on August 30.