Loans to the small scale sector are growing. Though the credit is still lesser than what the units have been seeking. The Small Industries Development Bank of India is is meant to service only this sector. The money disbursed to this sector went up from Rs 4584.69 crore in 1996-97 to Rs 5240.07 crore in 1997-98.

Money went mostly to state which are known for their industrial enterprise. Maharashtra got the maximum amount while Tamil Nadu was next. But the disappointment was the money lent for venture capital. In 1996-97 a sum of Rs 7 crore was sanctioned for venture capital (down from Rs 10 crore in the previous year). But only Rs 3.34 was disbursed. In 1997-98, the amount sanctioned was much higher at Rs 58 crore, but just Rs 7.42 crore was disbursed.