MSME Growth Innovation and Inclusive Finance Project

Abstract*

The objective of the MSME Growth Innovation and Inclusive Finance Project in India is to improve access to finance of MSMEs in manufacturing and service sectors from early to growth stage, including through innovative financial products. The higher level objective is to support growth and employment creation through unlocking opportunities for firm growth that the financing would provide. This project is made up of three components. Component 1 (Spurring... Show More

Development Objective

The project development objective is to improve access to finance of MSMEs in manufacturing and service sectors from early to growth stage, including through innovative financial products.

Key Details

Project Details

Project ID
P151544
Status
Closed
Team Leader
Mihasonirina Andrianaivo
Borrower 2
Small Industries Development Bank of India

Country
India
Disclosure Date
December 3, 2014
Approval Date
(as of board presentation)
February 24, 2015
Effective Date
June 26, 2015

Total Project Cost 1
US$ 550.00 million
Implementing Agency
SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA
Region
South Asia
Fiscal Year 3
2015

Commitment Amount
US$ 500.00 million
Environmental Category
F
Environmental and Social Risk
Not Applicable
Closing Date
March 31, 2019

Consultant Services required
No
Last Stage Reached
BANK APPROVED
Last Update Date
May 27, 2021

Notes
1. Total project cost includes funding from World Bank and non-bank sources in US$ millions. Active and Closed projects show current commitments. Proposed (pipeline) and dropped projects show the forecast amount. The commitment amount for projects in the pipeline is indicative and may be modified during the project preparation.
2. Borrower refers to the Borrower of a Loan or Recipient of a Grant.
3. ”Fiscal Year” is the fiscal year in which the project was approved (or dropped if the status is dropped). The World Bank's fiscal year is from July 1 - June 30. For example, a fiscal year of 1996 corresponds to July 1, 1995 - June 30, 1996.

Sectors

Themes

FY17 - Finance

FY17 - Financial Infrastructure and Access50%
- FY17 - MSME Finance50%

FY17 - Private Sector Development

FY17 - Enterprise Development50%
- FY17 - MSME Development50%
FY17 - Jobs100%

Project Map

Interactive Map

Finances

Financing Plan (US$ Millions)

Financier	Commitments
Borrower/Recipient	50.00
International Bank for Reconstruction and Development	500.00

Total Project Financing (US$ Millions)

Product Line	IBRD/IDA
IBRD Commitment	500.00
IDA Commitment	N/A
IBRD + IDA Commitment	500.00

Lending Instrument
Grant Amount	N/A
Total Project Cost**	550.00

Summary Status of World Bank Financing (US$ Millions) as of April 30, 2025

No data available.

Detailed Financial Activity as of April 30, 2025

Download:

Period	Financier	Transaction Type	Amount (US$)
Jun 15, 2021	IBRD-84710	Int Charges	686,222.06
Jun 15, 2021	IBRD-84710	Loan Repay	26,537,542.00
Jun 15, 2022	IBRD-84710	Loan Repay	26,537,542.00
Jun 15, 2022	IBRD-84710	Int Charges	416,360.16
Dec 15, 2021	IBRD-84710	Int Charges	434,720.03
Dec 15, 2021	IBRD-84710	Loan Repay	26,537,542.00
Dec 15, 2022	IBRD-84710	Int Charges	1,274,382.50
Dec 15, 2022	IBRD-84710	Loan Repay	26,537,542.00
Jun 15, 2023	IBRD-84710	Int Charges	92,997.55
Jun 15, 2023	IBRD-84710	Int Charges	1,206,475.00
Jun 15, 2023	IBRD-84710	Loan Repay	26,537,542.00
Dec 15, 2023	IBRD-84710	Int Charges	24,542.70
Dec 15, 2023	IBRD-84710	Int Charges	590,612.56
Dec 15, 2023	IBRD-84710	Loan Repay	19,612,624.00
Jun 15, 2024	IBRD-84710	Int Charges	3,899.65
Feb 24, 2015	IBRD-84710	Loan Commitment	500,000,000.00
Mar 9, 2016	IBRD-84710	Loan Disb	87,384,120.00
Dec 15, 2015	IBRD-84710	Int Charges	584,828.75
Dec 15, 2015	IBRD-84710	Int Charges	301,904.20
Jul 29, 2015	IBRD-84710	Loan Disb	100,000,000.00
Jun 26, 2015	IBRD-84710	Loan Disb	1,250,000.00
Jun 26, 2015	IBRD-84710	Fee Charges	1,250,000.00
Jun 16, 2016	IBRD-84710	Int Charges	440,069.53
Jun 16, 2016	IBRD-84710	Int Charges	827,823.10
Dec 15, 2016	IBRD-84710	Int Charges	1,256,146.00
Mar 13, 2017	IBRD-84710	Loan Disb	76,741,296.00
Dec 15, 2016	IBRD-84710	Int Charges	389,207.34
Jun 15, 2017	IBRD-84710	Int Charges	338,633.20
Jun 15, 2017	IBRD-84710	Int Charges	1,973,391.90
Dec 15, 2017	IBRD-84710	Int Charges	294,084.25
Dec 15, 2017	IBRD-84710	Int Charges	2,522,614.50
Jun 15, 2018	IBRD-84710	Int Charges	2,978,396.80
Jun 15, 2018	IBRD-84710	Int Charges	292,477.22
Dec 15, 2018	IBRD-84710	Int Charges	294,084.25
Dec 15, 2018	IBRD-84710	Int Charges	4,006,505.20
Jun 15, 2019	IBRD-84710	Int Charges	4,548,092.50
Jun 15, 2019	IBRD-84710	Int Charges	138,203.52
Mar 11, 2019	IBRD-84710	Loan Cancel	234,624,592.00
Dec 15, 2019	IBRD-84710	Int Charges	3,804,156.50
Jun 15, 2020	IBRD-84710	Int Charges	3,210,600.20
Jun 15, 2020	IBRD-84710	Loan Repay	26,537,542.00
Dec 15, 2020	IBRD-84710	Int Charges	1,104,824.20
Dec 15, 2020	IBRD-84710	Loan Repay	26,537,542.00
Mar 12, 2021	IBRD-84710	Loan Repay	60,000,000.00

Footnotes

Ratings

IMPLEMENTATION RATINGS

Name	Review	Date
Procurement	Satisfactory	2019-08-01
Financial Management	Satisfactory	2019-08-01
Overall Implementation Progress (IP)	Moderately Satisfactory	2019-08-01
Progress towards achievement of PDO	Moderately Satisfactory	2019-08-01
Project Management	Satisfactory	2019-08-01
Counterpart Funding	Satisfactory	2019-08-01
Monitoring and Evaluation	Satisfactory	2019-08-01

COMPLETION RATINGS

INDICATOR	IMPLEMENTATION COMPLETION & RESULTS REPORT: 09-24-2019
Outcomes	Moderately Unsatisfactory
Risk to Development Outcome
Bank Performance	Moderately Satisfactory
Borrower Performance
Government Performance
Implementing Agency

INDEPENDENT EVALUATION RATINGS

INDICATOR	ICR REVIEW: 02-03-2020	PROJECT PERFORMANCE ASSESSMENT REPORT:
Outcome Rating	Moderately Unsatisfactory	N/a
Risk To Development Outcome		N/a
Bank Performance	Moderately Satisfactory	N/a
Borrower Performance		N/a
Government Performance	Not Rated	N/a
Implementing Agency		N/a
Icr Quality	Substantial	N/a
M&e Quality	Modest	N/a

Results Framework

PROJECT DEVELOPMENT OBJECTIVE INDICATORS

INDICATOR		BASELINE	CURRENT	TARGET

Turnover of startups supported through the project in million USD Value 0.00 65.00 25.00
Date March 31, 2014 March 31, 2019
Comment
Outstanding MSME loan portfolio in risk capital financing including startups in million USD Value 136.00 260.00 200.00
Date March 31, 2014 March 31, 2019
Comment
Outstanding MSME loan portfolio in the manufacturing sector in million USD Value 497.00 1033.00 1275.00
Date March 31, 2014 March 31, 2019
Comment
Outstanding MSME loan portfolio in the service sector in million USD Value 346.00 900.00 675.00
Date March 31, 2014 March 31, 2019
Comment
Total number of MSMEs beneficiaries under the credit line Value 0.00 1320.00 660.00
Date March 31, 2014 March 31, 2019
Comment

INTERMEDIATE RESULTS INDICATORS

INDICATOR		BASELINE	CURRENT	TARGET

Number of total MSMEs extended risk capital under the credit line Value 0.00 260.00 130.00
Date March 31, 2014 March 31, 2019
Comment
Number of total service sector MSMEs reached under the credit line Value 0.00 400.00 200.00
Date March 31, 2014 March 31, 2019
Comment
Number of new schemes/products introduced and piloted for the manufacturing sector Value 0.00 4.00 2.00
Date March 31, 2014 March 31, 2019
Comment
Total number PFIs supported under the credit line Value 0.00 8.00 4.00
Date March 31, 2014 March 31, 2019
Comment
Average time for processing credit for startups Value 6.00 1.00 3.00
Date March 31, 2014 March 31, 2019
Comment
Strengthened credit appraisal methods for service sector loans Value Sufficient Strong Moderately Improved
Date March 31, 2014 March 31, 2019
Comment
Number of MSMEs benefitting from loan extension services under the credit line Value 0.00 120.00 60.00
Date March 31, 2014 March 31, 2019
Comment
Volume of loans extended to MSMEs using innovative methods including franchising finance under the credit line Value 0.00 40.00 15.00
Date March 31, 2014 March 31, 2019
Comment
Number of new schemes introduced and dedicated for women-owned / managed MSMEs Value 0.00 2.00 1.00
Date March 31, 2014 March 31, 2019
Comment
Non-performing loans (NPLs) of PFIs’ MSME portfolio Value TBD less than 8% Less than 8%
Date March 31, 2014 March 31, 2019
Comment
Number of women-owned / managed MSME beneficiaries under the credit line Value 0.00 325.00 125.00
Date March 31, 2014 March 31, 2019
Comment
Number of MSMEs (other than early stage) in Low Income States benefitting from the line of credit Value 0.00 320.00 160.00
Date March 31, 2014 March 31, 2019
Comment
Number of SIDBI and PFI officials trained (cumulative and by gender) Value 0.00 150.00 45.00
Date March 31, 2014 March 31, 2019
Comment
Improved collaboration for information sharing with external partners Value Sufficient Strong Moderately Improved
Date March 31, 2014 March 31, 2019
Comment
Volume of Bank Support: Lines of Credit - SME in million USD Value 0.00 425.00 175.00
Date March 31, 2014 March 31, 2019
Comment

Turnover of startups supported through the project in million USD	Value	0.00	65.00	25.00
	Date	March 31, 2014	March 31, 2019
	Comment

Outstanding MSME loan portfolio in risk capital financing including startups in million USD	Value	136.00	260.00	200.00
	Date	March 31, 2014	March 31, 2019
	Comment

Outstanding MSME loan portfolio in the manufacturing sector in million USD	Value	497.00	1033.00	1275.00
	Date	March 31, 2014	March 31, 2019
	Comment

Outstanding MSME loan portfolio in the service sector in million USD	Value	346.00	900.00	675.00
	Date	March 31, 2014	March 31, 2019
	Comment

Average time for processing credit for startups	Value	6.00	1.00	3.00
	Date	March 31, 2014	March 31, 2019
	Comment

Strengthened credit appraisal methods for service sector loans	Value	Sufficient	Strong	Moderately Improved
	Date	March 31, 2014	March 31, 2019
	Comment

Non-performing loans (NPLs) of PFIs’ MSME portfolio	Value	TBD	less than 8%	Less than 8%
	Date	March 31, 2014	March 31, 2019
	Comment