New Delhi: Public Sector Banks (PSBs) have sanctioned over 3.96 lakh MSME loan applications amounting to more than ₹52,300 crore between 1 April and 31 December 2025 under a new Credit Assessment Model (CAM) based on digital credit underwriting programmes.
The initiative marks a significant shift in MSME financing by leveraging digital footprints to enable faster, data-driven lending decisions.
Introduced in 2025, the CAM framework uses digitally fetched and verifiable data available across the financial ecosystem to automate MSME loan appraisal processes.
The model applies objective decisioning for all MSME loan applications and enables model-based limit assessment for both Existing-to-Bank (ETB) and New-to-Bank (NTB) MSME borrowers.
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Digital Credit Assessment Model Streamlines MSME Loan Applications
The digital credit assessment model utilises multiple data points including KYC authentication, mobile and email verification, Goods and Services Tax (GST) data analysis, bank statement analysis through Account Aggregators, Income Tax Return (ITR) verification, and Credit Information Companies (CICs) data.
It also incorporates fraud checks and other due diligence measures to ensure secure and reliable credit evaluation.
By using digital footprints, PSBs have enabled an end-to-end automated journey for MSME loan applications, significantly reducing manual intervention and processing time.
The system supports instant in-principle sanctions, seamless credit proposal processing, and straight-through processing (STP), while integrating credit guarantee schemes such as the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).
MSME Loan Applications Enabled Through Jan Samarth Portal
Loan applications under the digital credit underwriting programmes are sourced through the Jan Samarth Portal, which provides an end-to-end digital journey for MSME borrowers seeking loans within thresholds defined by individual banks.
Due diligence is carried out through digitally fetched data using various APIs, enabling quicker turnaround times and efficient decision-making.
Key Features of the Digital MSME Loan Applications Framework
- Instant in-principle sanction for MSME loans based on digital footprints such as GST, ITR, bank account statements, and CIC reports
- End-to-end digital application journey through the Jan Samarth Portal for eligible loan amounts
- API-driven due diligence using digitally fetched and verifiable data
- Faster decision-making with integration of credit guarantee portals including CGTMSE
Benefits for MSME Borrowers Applying for Loans
- MSME promoters can submit loan applications online without visiting bank branches
- Flexibility to apply for loans from anywhere on a 24/7 basis
- Online uploading of required documents with no need for physical submission during approval
- Faster communication of loan decisions immediately after application completion, improving overall turnaround time
