SF Prep Notes

PSBs sanction ₹52,300 crore to MSMEs under digital Credit Assessment Model

Public sector banks sanctioned over 3.96 lakh MSME loan applications worth more than ₹52,300 crore between 1 April and 31 December 2025 under their digital-footprint Credit Assessment Model, the Finance Ministry said on 19 January 2026.

Summary

The Credit Assessment Model (CAM), launched by public sector banks in 2025, appraises MSME loans using digitally fetched, verifiable data and automated journeys for both existing-to-bank and new-to-bank borrowers. The model uses KYC authentication, mobile and email checks, GST data, bank statements via account aggregators, ITR verification, credit information company data and fraud checks. Benefits include online applications, less paperwork, instant in-principle sanction and straight-through processing, with lending delivered through the Jan Samarth portal.

Key facts

Period
1 April – 31 December 2025
Applications sanctioned
Over 3.96 lakh
Amount
More than ₹52,300 crore
Model
Credit Assessment Model (CAM) based on digital footprints, launched 2025
Data used
GST, account aggregator bank statements, ITR, CIC data
Portal
Jan Samarth

Practice MCQs 2 questions

Q1 Advanced

Between 1 April and 31 December 2025, public sector banks sanctioned MSME loans worth more than how much under their digital Credit Assessment Model?

Show answer

Correct answer: C — ₹52,300 crore

PIB (Finance): over 3.96 lakh MSME loan applications amounting to more than ₹52,300 crore were sanctioned.

Q2 Advanced

The public sector banks' Credit Assessment Model for MSMEs is primarily based on:

Show answer

Correct answer: D — Digital footprints such as GST, bank statement and ITR data

PIB (Finance): the CAM uses digital footprints — KYC, GST data, account aggregator bank statements, ITR verification and CIC data — for automated appraisal.

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