Gandhinagar, Aug 29 (IANS) Banks in Gujarat disbursed Rs 3,79,535 crore in credit to micro, small and medium enterprises (MSMEs) during 2025-26, exceeding the State Level Bankers’ Committee (SLBC) target of Rs 3,10,917 crore by Rs 68,618 crore, according to data released ahead of National Small Industry Day on August 30.
The disbursement amounted to 122.07 per cent of the annual target, highlighting the scale of formal bank credit flowing to the state’s MSME sector.
Gujarat has more than 33 lakh MSME units registered on the Udyam portal. The figures come as access to finance remains a key component of the state’s support for small businesses, which contribute to investment, entrepreneurship, employment and industrial activity.
The latest SLBC data show that lending to MSMEs went substantially beyond the target fixed for 2025-26. Chief Minister Bhupendra Patel has stressed that banks need to ensure that credit reaches businesses and other beneficiaries at the last mile.
While presiding over the 190th meeting of the SLBC in Gandhinagar, he said the banking sector had an important role to play as India moves towards becoming the world’s third-largest economy under Prime Minister Narendra Modi’s leadership.
“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 last-mile beneficiaries.
The push for wider access to finance is also being supported by changes in the way MSME loans are assessed.
Public sector banks introduced the computer-based Credit Assessment Model (CAM) in 2025 to reduce dependence on conventional paperwork and manual verification.
Under the system, information available digitally is used for credit assessment. This includes KYC details, GST filing records, electronically verified bank statements, income tax returns, credit history and other relevant financial information.
The system uses the available business data to determine the loan amount that may be offered.
The digital process allows eligible MSMEs to apply for loans using a phone or computer without having to visit a bank branch. In-principle approval may be provided quickly in eligible cases, while the assessment takes into account factors such as income, expenditure and repayment history.
The system also provides for the integration of government-backed schemes such as the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), which can help eligible small businesses obtain credit without pledging property or other assets as collateral.
The increased use of digital information in loan appraisal is part of the wider effort to make formal credit more accessible to smaller enterprises.
At the meeting of the SLBC in June, the committee had also reviewed banking-sector performance in Gujarat for 2025-26 and recorded strong growth in banking business.
As Gujarat marks National Small Industry Day on August 30, the latest lending figures place access to institutional finance at the centre of the state’s MSME landscape, with the banking sector being called upon to extend credit beyond established businesses to smaller entrepreneurs and other underserved sections.
–IANS
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