Over Rs. 75bn in Government MSME Loans Disbursed in 2026

More than Rs. 75 billion from the Government’s Rs. 95 billion MSME financing package has already been disbursed in 2026, according to the Department of Development Finance.

The loans have reached 6,832 businesses through five financing schemes operated with 15 state and private banks.

The Government set aside the Rs. 95 billion package under the 2026 Budget to support micro, small and medium-sized enterprises.

Of the total, Rs. 55 billion was earmarked specifically for small and medium-sized enterprises.

Loans Reach Businesses

The Government has also set targets for the distribution of the financing.

At least 20% of the loans must go to women entrepreneurs, while another 20% must go to young entrepreneurs.

The financing programme also includes support for businesses affected by Cyclone Ditwah and the recent economic crisis.

Under a dedicated disaster loan scheme, affected businesses can obtain working-capital loans of up to Rs. 25 million at an annual interest rate of 3%.

By the end of July, around Rs. 8 billion of the Rs. 10 billion allocated for the scheme had reached 3,966 businesses.

More than 90% of those businesses are micro and small enterprises, according to the Department.

Support for Businesses Facing Debt Pressure

The Government has also extended financing to businesses that have struggled to obtain loans through normal banking channels.

A total of 70 businesses with non-performing loans received Rs. 235 million in working-capital financing.

Meanwhile, 342 MSMEs have resumed operations after using government-backed debt restructuring arrangements agreed with participating banks.

The financing support also includes a collateral-free lending programme through the National Credit Guarantee Institution.

So far, the institution has issued guarantees worth about Rs. 9.65 billion for 2,143 loans. Those guarantees cover nearly Rs. 14 billion in total lending across the country.

The broader programme aims to give eligible MSMEs access to lower-cost financing to help them continue operations, recover from setbacks and expand.