More than 3.96 lakh loan applications from Micro, Small, and Medium Enterprises (MSMEs) have been approved by Public Sector Banks (PSBs) under digital credit programs, totaling over Rs 52,300 crore between April 1 and December 31, 2025. The PSBs introduced a Credit Assessment Model (CAM) based on digital footprints for MSMEs last year. This model utilizes digitally sourced and verifiable data to automate the loan appraisal process for both existing and new MSME borrowers.
The Ministry of Finance stated that the credit assessment model incorporates various digital data for KYC verifications, GST and bank statement analysis, ITR verification, and fraud checks. It streamlines the loan application process for MSMEs by enabling online submissions, reducing paperwork, providing instant digital approvals, and ensuring seamless credit processing. Additionally, the model integrates credit guarantee schemes like CGTMSE.
MSME promoters can now apply for loans round the clock from anywhere without visiting bank branches, as physical document submissions are not required during the approval process. In a move to boost India’s e-commerce and MSME sectors, the government has extended export incentives to postal shipments effective from January 15. The Central Board of Indirect Taxes and Customs (CBIC) has expanded export benefits to postal exports, aiming to enhance the competitiveness of MSME exporters, especially from smaller towns and remote areas.
