In a significant boost to micro, small, and medium enterprises (MSMEs), Public Sector Banks (PSBs) have sanctioned over 3.96 lakh loan applications amounting to more than ₹52,300 crore between April 1 and December 31, 2025. This milestone was achieved under a new, fully digital Credit Assessment Model (CAM) launched earlier in the year.
The model leverages the digital footprint of businesses—such as GST returns, ITR data, bank statements (via account aggregators), and credit history—to automate and expedite the loan appraisal process. This marks a paradigm shift from traditional, paper-heavy methods to an objective, data-driven underwriting system.
Key Features and Benefits:
Instant Decision: MSMEs can receive in-principle loan sanctions instantly based on their verifiable digital data.
Zero Physical Paperwork: Applicants can apply and upload documents 24/7 through the Jan Samarth Portal (https://www.jansamarth.in), eliminating the need for branch visits.
Faster Processing: The end-to-end digital journey and integration with credit guarantee schemes like CGTMSE drastically reduce the turnaround time for loan approval.
Wider Reach: The model effectively assesses both existing and new-to-bank customers, expanding credit access.
An official release stated, “The benefits to MSMEs include submission of application from anywhere through online mode, reduced paperwork and branch visits, and seamless processing of credit proposals.” The initiative is a cornerstone of the government’s push to enhance ease of doing business and ensure timely, collateral-free credit flow to the vital MSME sector.
This digital lending revolution is expected to further accelerate formal credit penetration among India’s small businesses, fostering growth and employment.
