Image-bing
PSBs Sanction ₹52,300 Crore MSME Loans Using Digital Credit Model: Big Boost for Small Businesses
Summary: Public Sector Banks have sanctioned over ₹52,300 crore worth of MSME loans using a new digital Credit Assessment Model (CAM), making business loans faster, paperless, and branch-free for small entrepreneurs across India.
MSME Digital Lending Gets a Major Push in 2025
New Delhi,January 19, 2026 (PIB): In a major step towards strengthening India’s MSME ecosystem, Public Sector Banks (PSBs) have successfully rolled out a Credit Assessment Model (CAM) based on digital footprints. Introduced in 2025, this model has already transformed the way small businesses access bank credit.
Between 1 April and 31 December 2025, PSBs sanctioned over 3.96 lakh MSME loan applications, amounting to more than ₹52,300 crore, under their digital credit underwriting programmes.
This initiative is helping MSMEs get faster approvals, less paperwork, and instant in-principle loan sanctions, without the need to visit bank branches.
What Is the Credit Assessment Model (CAM)?
The CAM is a technology-driven loan appraisal system that evaluates MSME loan applications using digitally verified data instead of manual paperwork.
It supports both:
- Existing-to-Bank (ETB) MSME customers
- New-to-Bank (NTB) MSME borrowers
The model ensures objective, data-based credit decisions, reducing delays and human bias.
Digital Footprints Used for MSME Loan Approval
The CAM leverages multiple verified digital data sources, including:
- KYC authentication
- Mobile & email verification
- GST data analysis
- Bank statement analysis via Account Aggregator
- Income Tax Return (ITR) verification
- Credit Information Companies (CICs) data
- Fraud checks and digital due diligence
This enables automated loan journeys and model-based credit limit assessment.
Jan Samarth Portal: One Platform, Many Benefits
MSME loan applications under this system are sourced through the Jan Samarth Portal
https://www.jansamarth.in
Banks have defined specific loan amount thresholds, within which MSMEs can apply completely online, from anywhere in the country.
Key Features of Digital MSME Credit Model
- Instant in-principle loan sanction
- Data-driven credit decisions using GST, ITR & CIC data
- End-to-end Straight Through Processing (STP)
- Much faster turnaround time (TAT)
- Integration with CGTMSE credit guarantee scheme
- API-based digital due diligence
Major Benefits for MSMEs & Small Entrepreneurs
- No Branch Visits Required: Borrowers can apply 24x7, 365 days, from home or office.
- Paperless Process: All documents are uploaded online-no physical copies needed.
- Faster Decisions: Loan approval or rejection is communicated immediately after application submission.
- Transparent & Objective: Credit decisions are based on transaction behaviour and credit history, not manual discretion.
A Game-Changer for India’s MSME Growth
This digital lending push by PSBs marks a significant reform in MSME financing, helping small businesses access timely credit, improve cash flow, and scale operations. It also aligns with the Government’s vision of Digital India, Ease of Doing Business, and Atmanirbhar Bharat.
MSME digital loans India,PSB Credit Assessment Model,Jan Samarth MSME loan scheme
Post a Comment