Over ₹52,300 crore MSME loans sanctioned by PSBs under digital credit model

Public sector banks under the digital credit underwriting programmes sanctioned over 3.96 lakh MSME loan applications amounting to over ₹52,300 crore between April 1 and December 31, 2025, the finance ministry said on Monday.

The Public Sector Banks (PSBs) had launched the Credit Assessment Model (CAM) based on digital footprints for Micro, Small & Medium Enterprises (MSMEs) in 2025.

This credit assessment model leverages the digitally fetched and verifiable data available in the ecosystem and devises automated journeys for MSME Loan appraisal using objective decisioning for all loan applications and model-based limit assessment for both Existing to Bank (ETB) as well as New to Bank (NTB) MSME borrowers, a finance ministry statement said.

"Between 1st April and 31st December, 2025, over 3.96 lakh MSME loan applications amounting to more than ₹52,300 crore have been sanctioned by the Public Sector Banks (PSBs) under the digital credit underwriting programmes," the ministry said in a statement.

Digital footprints are used by the model for KYC authentication, mobile and email verification, GST data analysis, bank statement analysis (using account aggregators), ITR verification, and due diligence using Credit Information Companies (CICs) data, fraud checks, among others.

The benefits to MSMEs by use of such models include submission of application from anywhere through online mode, reduced paperwork and branch visits, instant in-principle sanctions through digital mode, seamless processing of credit proposals, reduced turnaround time, credit decision based on objective data/ transactional behaviour and credit history and integration of credit guarantee schemes.