In this paper, a resolution enhancement method for direct interfacing of inductive sensors, without employing analog-to-digital converter and/or external driver circuit, is presented. In order to achieve better resolution with minimum relative error and current consumption factors, different schemes are implemented which vary in terms of: 1) step-input voltage provision methodology, i.e., through microcontroller (<inline-formula> <tex-math notation="LaTeX">\mu \text{C} </tex-math></inline-formula>) pin or through external supply; 2) number of switches used; and 3) method of voltage detection, i.e., either using capture module or employing built-in comparator only. The maximum achievable resolution limits are explored by reducing the lower reference voltage (<inline-formula> <tex-math notation="LaTeX">\text{V}_{\mathrm {Ref L}} </tex-math></inline-formula>) in case of detection through built-in analog comparator and/or reducing the series resistance. The one-point calibration technique is used to determine the accuracy. The experiments are performed at 16-MHz clock frequency in the inductance range of: 1) 10-100 <inline-formula> <tex-math notation="LaTeX">\mu \text{H} </tex-math></inline-formula> and 2) 100-1000 <inline-formula> <tex-math notation="LaTeX">\mu \text{H} </tex-math></inline-formula>. The results show that in the limits of a maximum current sourcing/sinking capacity of a typical <inline-formula> <tex-math notation="LaTeX">\mu \text{C} </tex-math></inline-formula>, i.e., 40 mA, the proposed methodology enhances the resolution to <inline-formula> <tex-math notation="LaTeX">4~\mu \text{H} </tex-math></inline-formula> with a relative error of 1.2 in the percentage of full-scale span (%FSS). The maximum nonlinearity error in %FSS for inductance range 10-100 <inline-formula> <tex-math notation="LaTeX">\mu \text{H} </tex-math></inline-formula> and 100-1000 <inline-formula> <tex-math notation="LaTeX">\mu \text{H} </tex-math></inline-formula> is 1.1% and <0.4%, respectively.