New Delhi: Public Sector Banks sanctioned more than ₹52,300 crore in MSME digital loans after approving over 3.96 lakh applications between April 1 and December 31, 2025, under a new Credit Assessment Model.
PSBs introduced the Credit Assessment Model in 2025 to evaluate Micro, Small and Medium Enterprises using verified digital data. The system enabled automated loan appraisal and objective credit decisions for existing and new MSME borrowers.
The model used digital footprints across multiple platforms. Banks verified KYC details, mobile numbers and email IDs digitally. They analysed GST data, reviewed bank statements through account aggregators and validated income tax returns.
Banks also assessed credit history using Credit Information Companies. In addition, they conducted automated fraud checks to strengthen risk controls. This process replaced manual scrutiny and improved decision accuracy.
As a result, MSMEs applied online without visiting branches. The model reduced paperwork and delivered instant in-principle sanctions. It also improved turnaround time for loan approvals.
MSME digital loans processed through Jan Samarth Portal
Banks sourced MSME digital loan applications through the Jan Samarth Portal within approved loan thresholds. The portal supported an end-to-end digital journey for borrowers.
Banks completed due diligence through APIs that fetched data from official sources. This approach enabled quicker decisions and consistent assessments across cases.
Moreover, banks integrated credit guarantee schemes such as the Credit Guarantee Fund Trust for Micro and Small Enterprises into the workflow. The straight-through process shortened approval timelines.
For borrowers, the platform offered 24/7 access from any location. Promoters uploaded documents online and received decisions immediately after submission, without submitting physical copies.
