New MSME credit assessment model for PSBs may see March 2025 launch

Credit model goes beyond credit scores, evaluates supply chains, digital footprints

The new micro, small and medium enterprise (MSME) credit assessment model, based on digital footprints for public sector banks (PSBs), is expected to be launched by the end of March next year, sources in the know said.

“Almost half of the work has been completed, and we expect a launch by the end of this financial year (2024-25/FY25),” said a PSB official.

Finance Minister Nirmala Sitharaman, in the Union Budget for FY25, proposed that PSBs develop in-house capabilities to assess MSMEs for credit, moving away from external assessments. She also indicated that PSBs would lead the development or acquisition