Gandhinagar: Gujarat’s micro, small and medium enterprises (MSMEs) have received strong support from the banking sector, with banks disbursing ₹3,79,535 crore in credit during 2025–26, against the target of ₹3,10,917 crore. This represents 122.07% achievement, with lending exceeding the target by ₹68,618 crore.
The figures highlight the growing access to institutional finance for Gujarat’s MSMEs and the strength of the state’s entrepreneurial and industrial ecosystem. The development comes ahead of National Small Industry Day, observed every year on August 30 to recognise the contribution of small-scale industries to India’s economic development.
Gujarat Has Over 33 Lakh Registered MSMEs
Gujarat is among the leading MSME states in India, with more than 33 lakh MSME units registered on the Udyam portal.
The strong credit disbursement by banks reflects improved access to finance for businesses across the micro, small and medium enterprise segment.
The MSME sector is playing an increasingly important role in Gujarat’s economic growth by contributing to:
- Investment and entrepreneurship
- Employment generation
- Industrial development
- Expansion of small and medium businesses
- Strengthening of the state’s overall industrial ecosystem
Government incentives, combined with banking support, are helping MSMEs access finance and expand their business activities.
Credit Assessment Model Makes MSME Loans More Digital
Public sector banks introduced a computer-based Credit Assessment Model (CAM) for MSME business loans in 2025. The system uses digitally available business information to assess loan applications instead of relying primarily on paperwork and manual verification.
Under the CAM system, information available through digital records is automatically retrieved for credit assessment.
Information Considered Under CAM
The system can use information such as:
- KYC details
- Phone number and email
- GST filing details
- Electronically verified bank statements
- Income Tax Returns
- Credit history
- Other relevant financial information
Based on the available data, the system assesses the business and determines the loan amount that may be offered.
MSMEs Can Apply for Loans Digitally
The digital loan appraisal system allows MSMEs to apply for business loans through a phone or computer without necessarily visiting a bank branch.
The system is aimed at reducing paperwork and making the loan application and approval process faster and simpler. In-principle approval can also be provided quickly in eligible cases.
Credit decisions are based on business-related information, including income, expenses and repayment history.
The system also integrates government-backed schemes such as CGTMSE, helping eligible small businesses access credit without necessarily providing property or other assets as collateral.
Banking Sector to Support India’s Growth as Third-Largest Economy: CM
Chief Minister Shri Bhupendra Patel, while presiding over the 190th meeting of the State Level Bankers Committee (SLBC) in Gandhinagar, highlighted the important role of the banking sector in India’s economic growth.
He said that under the leadership of Prime Minister Shri Narendra Modi, India is moving towards becoming the world’s third-largest economy, and the banking sector will have a crucial role in supporting this journey.
The Chief Minister called upon banks to ensure credit reaches the last mile and that finance remains accessible to sections that need it most.
He particularly emphasised the need to improve access to credit for:
- MSMEs
- Women entrepreneurs
- Rural artisans
- Small farmers
- Marginalised sections of society
The state government’s focus on financial access, combined with digital lending systems and banking support, is expected to further strengthen Gujarat’s MSME ecosystem and contribute to investment, employment and industrial growth.
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