• Government Launches Credit Assessment Model for MSME with Automated Lending Framework

    Credit Assessment Model for MSME

    New Delhi: The government has announced the launch of the Credit Assessment Model for MSME, a digitally driven framework designed to streamline and enhance loan appraisal for Micro, Small & Medium Enterprises.

    The initiative leverages verifiable digital data available across the financial ecosystem to automate loan evaluation, ensuring objective decision-making for all MSME loan applications.

    The Credit Assessment Model for MSME supports model-based limit assessment for both Existing to Bank (ETB) and New to Bank (NTB) borrowers.

    Credit Assessment Model for MSME Designed for Automated, Objective Lending Decisions

    According to the Ministry of Finance, the new Credit Assessment Model for MSME uses digitally fetched data to facilitate transparent and efficient appraisal processes.

    The framework is aimed at reducing manual interventions and improving the overall ease of access to credit for small enterprises.

    Also Read: MonetaGo Partners with SIDBI to Enhance Transparency and Fraud Prevention in MSME Financing

    Government, RBI & NPCI Expand Digital Payments Initiatives

    The government, in collaboration with the Reserve Bank of India (RBI) and the National Payments Corporation of India (NPCI), continues to drive digital payment adoption through multiple initiatives.

    These include the incentive scheme for RuPay Debit Cards and low-value BHIM-UPI (P2M) transactions, along with the Payments Infrastructure Development Fund (PIDF), which supports the expansion of digital payment terminals and QR codes in underserved regions.

    Also Read: India-UK CETA: MSMEs Urged to Tap UK Market

    PM SVANidhi Scheme Extended to 2030 with Higher Loan Amounts

    The Pradhan Mantri Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) Scheme, operational since June 1, 2020, has been extended to March 31, 2030.

    Jointly implemented by the Ministry of Housing and Urban Affairs and the Department of Financial Services, the scheme now offers enhanced loan amounts of ₹15,000, ₹25,000, and ₹50,000 across three tranches.

    The scheme also includes a UPI-linked RuPay Credit Card with a ₹30,000 limit and cashback incentives for digital transactions.

    Minister of State for Finance Pankaj Chaudhary provided these updates in a written reply to the Rajya Sabha.

    Author

    • Salil Urunkar

      Salil Urunkar is a senior journalist and the editorial mind behind Sahyadri Startups. With years of experience covering Pune’s entrepreneurial rise, he’s passionate about telling the real stories of founders, disruptors, and game-changers.

    Back to top