Credit Growth for MSMEs | 31 Jul 2021

Why in News

According to a report from TransUnion Cibil and Small Industries Development Bank of India (SIDBI), there has been a growth in the credit outstanding amount of Micro, Small and Medium Enterprise (MSME) sector to Rs 20.21 lakh crore, with a year-on-year growth rate of 6.6%.

  • Even according to the Reserve Bank of India (RBI), credit growth to micro and small industries accelerated to 6.4% in June 2021, compared to a contraction of 2.9% in 2020.

Small Industries Development Bank of India

  • SIDBI set up in April 1990 under an Act of Indian Parliament, acts as the Principal Financial Institution for Promotion, Financing and Development of the MSME sector as well as for coordination of functions of institutions engaged in similar activities.

TransUnion CIBIL Limited

  • It is a credit information company operating in India. It maintains credit files on 600 million individuals and 32 million businesses.

Key Points

Source: IE