Gujarat MSMEs get huge boost with 122% credit target achievement

Gujarat's MSME sector saw strong banking support in 2025-26, with banks disbursing Rs 3,79,535 crore, achieving 122.07% of the credit target. The state, with over 33 lakh MSMEs, has also introduced a new digital loan assessment system.

Strong Banking Support for Gujarat's MSMEs

Gujarat's MSME sector is witnessing strong banking support, backed by the state government's continued efforts under the leadership of Chief Minister Bhupendra Patel. As per State Level Bankers Committee (SLBC) data, banks disbursed Rs 3,79,535 crore to MSMEs in 2025-26 against a target of Rs 3,10,917 crore, achieving 122.07 per cent of the target. As per the release, this is Rs 68,618 crore above the target, reflecting strong confidence in Gujarat's industrial ecosystem.

'National Small Industry Day' is celebrated in India every year on August 30, highlighting the importance of small-scale industries and their contribution to the country's economic development. Gujarat is among the leading MSME states in the country, with more than 33 lakh MSME units registered on the Udyam portal. Achieving 122.07 per cent of the credit target for MSMEs is not only a reflection of the strong support from the banking sector, but also of the growing access to finance for micro, small and medium enterprises and the strength of Gujarat's entrepreneurial ecosystem.

With well-structured banking support and various government incentives, the MSME sector is emerging as an important driver of investment, entrepreneurship, employment and industrial development in the state.

Digital Transformation in MSME Lending

In 2025, public sector banks introduced a new computer-based system for providing business loans to micro, small and medium enterprises (MSMEs), known as the 'Credit Assessment Model' (CAM). The system assesses businesses based on their digital footprint, including online information such as tax filings and bank records, rather than relying solely on paperwork and manual verification.

Automated Credit Assessment

The computer system automatically retrieves information already available online, including KYC details, phone number and email, GST filing details, electronically verified bank statements, income tax returns, credit history and other information required for credit assessment. Based on this information, the system determines the loan amount that can be offered to the business, the release said.

Simplified Application Process

MSMEs can apply for a loan digitally (through phone or computer) without having to visit the Bank. This reduces paperwork & saves time. In-principle approval is often provided immediately, making the application-to-approval process faster and simpler.

Data-Driven Decisions and Scheme Integration

Credit decisions are based on business data, including income, expenses and loan repayment history. The system also integrates government schemes such as CGTMSE, enabling many small businesses to access loans without mortgaging property or other assets.

CM's Vision for Inclusive Banking

Presiding over the 190th meeting of the State Level Bankers Committee (SLBC) held recently in Gandhinagar, Chief Minister Patel stated that under the leadership of Prime Minister Narendra Modi, India is moving towards becoming the world's third-largest economy, with the banking sector having an important role to play. He called upon the banking sector to extend Credit to the Last Mile and ensure easy access to finance for marginalised sections, including MSMEs, women entrepreneurs, rural artisans and small farmers. (ANI)

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