Date: 2026-01-19Category: Press ReleaseState: Union GovernmentCountry: India
Over 3.96 Lakh MSME loan applications amounting to more than ₹52,300 crore Sanctioned by PSBs under new Credit Assessment Model based on digital credit underwriting programmes between 1st April and 31st December, 2025
**Executive Summary**
The Ministry of Finance reports that Public Sector Banks (PSBs) have sanctioned over 3.96 Lakh MSME loan applications, totaling over ₹52,300 crore, between April 1st and December 31st, 2025. This was achieved under a new Credit Assessment Model (CAM) based on digital credit underwriting programmes, streamlining MSME financing through the Jan Samarth Portal. The CAM leverages digital footprints for objective decision-making in loan appraisals.
**Key Points / Main Content**
* **Credit Assessment Model (CAM):**
* PSBs launched CAM in 2025 for MSMEs, utilizing digital footprints.
* CAM enables automated MSME loan appraisal using objective decisioning.
* It supports both Existing to Bank (ETB) and New to Bank (NTB) MSME borrowers.
* **Digital Footprints Usage:**
* The model uses digital footprints for KYC, mobile/email verifications, GST data analysis, bank statement analysis, ITR verification, CIC data, and fraud checks.
* **Key Features:**
* Instant in-principle sanction for MSME loans based on digital footprints (GST, ITR, Bank A/c Statement, CIC reports).
* Application sourcing through the Jan Samarth Portal for loans within specific thresholds.
* Due diligence based on digitally fetched data through APIs.
* Quicker turnaround time and integration with credit guarantee portals like CGTMSE.
* **Benefits for MSMEs:**
* Online application submission from anywhere, reducing paperwork and branch visits.
* Seamless processing of credit proposals through STP.
* Reduced turnaround time (TAT).
* Credit decisions based on objective data/transactional behavior and credit history.
* Integration with credit guarantee schemes like CGTMSE.
* No need to visit branches for loan application; flexibility to apply from anywhere (24/365).
* Online uploading of required documents, eliminating the need for physical copies.
* Immediate online decision conveyance upon completion of loan application.
**Impact Analysis**
**Stakeholder:** MSMEs
**Impact:** Beneficiaries through streamlined loan processes, reduced paperwork, quicker turnaround times, and access to financing via the Jan Samarth Portal.
**Action Required:** Utilize the Jan Samarth Portal to apply for loans, providing necessary digital documentation (GST, ITR, Bank Statements, CIC reports).
**Stakeholder:** Public Sector Banks (PSBs)
**Impact:** Improved efficiency in loan processing, objective credit assessment, reduced operational costs through digitization, and integration with digital platforms and credit guarantee schemes.
**Action Required:** Implement and utilize the new Credit Assessment Model (CAM) for MSME loan applications, integrating with the Jan Samarth Portal and utilizing digital data for due diligence.
**Stakeholder:** MSME Promoters
**Impact:** Greater convenience and flexibility in applying for loans, eliminating the need for branch visits and facilitating 24/365 accessibility.
**Action Required:** Familiarize themselves with the online application process and documentation requirements for loans through the Jan Samarth Portal.
Key Entities Referenced
Credit Assessment Model (CAM): A model launched by Public Sector Banks (PSBs) based on digital footprints for Micro, Small & Medium Enterprises (MSMEs) for loan appraisal and limit assessment.
Public Sector Banks (PSBs): Banks that are sanctioning MSME loan applications under the Credit Assessment Model.
MSME: Micro, Small & Medium Enterprises, the target beneficiaries of the loan program.
Jan Samarth Portal: A portal used for application sourcing within the Credit Assessment Model's framework.
Ministry of Finance: The ministry under whose authority the information is being released.
Ministry of Finance
Over 3.96 Lakh MSME loan applications
amounting to more than ₹52,300 crore
Sanctioned by PSBs under new Credit
Assessment Model based on digital credit
underwriting programmes between 1st April and
31st December, 2025
Digital footprint-based lending revolutionizes MSME
financing through Jan Samarth Portal
प्रव तथ: 19 JAN 2026 2:11PM by PIB Delhi
The Public Sector Banks (PSBs) launched Credit Assessment Model (CAM) based on digital footprints for
Micro, Small & Medium Enterprises (MSMEs) in the year 2025.
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.
This credit assessment model leverages the digitally fetched and verifiable data available in the ecosystem
and devise 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.
Digital footprints are used by the model for KYC authentications, mobile and email verifications, GST
data analysis, bank statement analysis (using account aggregator), 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, end to end straight through process (STP), reduced turnaround
time (TAT), Credit decision based on objective data/ Transactional behaviour and credit history and
integration of credit guarantee schemes like CGTMSE.
Key Features
Instant in-principle sanction for MSME loans based on digital footprints of the customer (GST, ITR, Bank
A/c Statement, CIC reports etc).
Application sourcing is through an end-to-end journey in Jan Samarth Portal (https://www.jansamarth.in)
for loans within specific thresholds for loan amounts as defined by banks.
Due diligence is being carried out based on digitally fetched data through various APIs.Quicker turnaround time for decision making and integration with credit guarantee portals such as
CGTMSE.
Benefits
Borrowers need not visit branches for applying the loan. MSME promoters have the flexibility to apply for
loan from anywhere on 24/365 basis.
Uploading of the required documents is enabled and no necessity to submit physical copies during
approval of the loans.
Immediately on completion of loan application, the decision shall be conveyed to the applicant online,
thereby improving the turnaround time.
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