Digital Footprints Transform MSME Lending
The Credit Assessment Model (CAM) introduced by PSBs utilizes verified digital data to automate the appraisal of MSME loan applications. This model evaluates both Existing to Bank (ETB) and New to Bank (NTB) borrowers based on objective decision-making criteria and model-based limit assessments.
Key digital sources include GST data, income tax returns, bank account statements (via account aggregators), Credit Information Companies (CICs), and other verified customer information. The model also performs KYC verification, fraud checks, and due diligence to ensure reliable credit decisions.
Features Driving Efficiency and Accessibility
- Instant in-principle sanction for loans using digital customer footprints.
- End-to-end online application process through Jan Samarth Portal for specific loan thresholds.
- Seamless integration with APIs for automated due diligence and verification.
- Integration with credit guarantee portals such as CGTMSE for additional support.
- Reduced turnaround time, enabling faster credit decisioning.
Benefits for MSME Borrowers
MSME promoters no longer need to visit bank branches physically. Applications can be submitted online from anywhere, 24/7, with digital document uploads replacing traditional paperwork. Upon completion of the application, instant online communication ensures a significant reduction in turnaround time.
The digital credit process also ensures that lending decisions are based on objective data, transactional behaviour, and verified credit history, improving transparency and efficiency in MSME financing. This model also integrates government-backed credit guarantee schemes, enhancing the security and accessibility of funds for small businesses.
Impact on India’s MSME Sector
By streamlining credit assessment and offering paperless, instant approvals, the digital model strengthens financial inclusion for MSMEs. With over 3.96 lakh loans sanctioned since April 2025, the initiative demonstrates how technology-driven lending can accelerate the growth of India’s small business ecosystem.
