# SIDBI, RRBs to expand co-lending for rural MSME credit 2026-08-26T11:27:49+00:00 | Governance | Indian Opinion Desk Corroboration: 1 independent outlet SIDBI and all 28 Regional Rural Banks (RRBs) plan to expand a co-lending arrangement to boost credit access for micro, small and medium enterprises (MSMEs) in rural and semi-urban areas. The proposed expansion was discussed at a conclave in New Delhi chaired by Department of Financial Services Secretary Sanjay Lohiya, with the government emphasising the need to combine RRBs' wider reach with SIDBI's MSME lending expertise. The model includes a digital Co-Lending Origination Platform that allows in-principle loan sanctions and disbursement without branch visits. A pilot at three RRBs has shown encouraging results. The government urged RRBs to make MSME lending under this arrangement a key branch target and to support India's next-generation manufacturing ecosystem. SIDBI CMD Manoj Mittal called for active participation to make the expanded programme successful. ## Indian Opinion Analysis RRBs have traditionally focused on agriculture and priority sector lending, but their MSME portfolios remain small relative to commercial banks. The co-lending model lets SIDBI, which has specialised MSME underwriting tools, share risk and reduce defaults through rule-based systems. For RRBs, this is a chance to diversify assets beyond farm loans, which face monsoon-linked volatility. The digital platform also addresses a chronic rural problem: the cost of physical branch visits for small loans. The key metric to watch is how many of the remaining 25 RRBs sign up and how quickly loan disbursements scale beyond the pilot phase. ## Coverage - thehindubusinessline.com Straightforward reporting of government and SIDBI announcements with no slant This brief was synthesised by AI from the source linked above. Tags: Department of Financial Services, Manoj Mittal, MSME, New Delhi, RRBs, SIDBI Canonical: https://indianopinion.org/sidbi-rrbs-to-expand-co-lending-for-rural-msme-credit/ License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources. Cite: https://indianopinion.org/sidbi-rrbs-to-expand-co-lending-for-rural-msme-credit/#story-in-brief Review state: restored archive article, accurate at time of publication, not offered to search indexes. How this brief was made: an AI model read the report linked above and wrote this summary and analysis, which were published automatically. Published briefs are sampled every hour by an automated quality check; the editor verifies its findings and approves corrections, and corrected briefs carry a dated correction line. We do no original reporting. Methodology: https://indianopinion.org/ai-use-policy/