Impact assessment of Microenterprises Credit Operations

 Impact assessment of enterprises involves foreseeing the potential outcomes of any action or change and planning accordingly to address both positive and negative results. It's about being responsible to various stakeholders while ensuring sustainable decisions for organizational progress.


Microfinance is a key strategy adopted by SIDBI to promote financial inclusion. Initially, it experimented with providing microcredit through NGOs, which had the advantage of reaching areas underserved by formal banking. These NGOs acted as intermediaries, extending credit to marginalized individuals who lacked access to traditional financial services.

Recognizing the success of this model, SIDBI expanded its reach to include marginalized communities such as Scheduled Castes, Scheduled Tribes, and Backward Classes. Over time, SIDBI has enhanced its lending to MSMEs, with a particular focus on environmentally sustainable initiatives.

The institution's loan portfolio has seen significant growth, expanding by 40% annually over the past two years. This growth trajectory is expected to continue in the coming fiscal year. SIDBI has achieved this through various initiatives, including financing against invoices, providing equity support, implementing energy-saving schemes, and collaborating on state-level venture funds.

Furthermore, SIDBI is actively involved in fostering SME clusters for business development. It aims to enhance their capacity for innovation and competitiveness on the global stage. Through these efforts, SIDBI is contributing to the growth and sustainability of microenterprises and SMEs across diverse sectors.

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