MONEY
PSBs approve Rs 52,300 crore of MSME loans, powered by tracking digital spending
- IBJ Bureau
- Jan 20, 2026
Public sector banks (PSBs) have sanctioned over 3.96 lakh MSME loan applications amounting to over Rs 52,300 crore between April 1 and December 31, 2025, under the digital credit underwriting programmes, the Finance Ministry has said.
The PSBs had launched 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, the ministry has added.
“Between April 1 and December 31, 2025, over 3.96 lakh MSME loan applications amounting to more than Rs 52,300 crore have been sanctioned by the public sector banks under the digital credit underwriting programmes,” the ministry’s statement reveals.
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 and 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 or transactional behaviour and credit history and integration of credit guarantee schemes.
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