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PSBs Sanction 3.96 Lakh MSME Loans Worth Rs 52,300 Crore via Digital Push

Public Sector Banks have sanctioned over 3.96 lakh MSME loan applications amounting to more than Rs 52,300 crore between April and December 2025 using digital credit underwriting programs. The Credit Assessment Model leverages digital footprints for automated loan appraisal, enabling instant sanctions and reducing paperwork and branch visits for borrowers. In a related move to boost the sector, the government has extended key export incentives like RoDTEP and RoSCTL to shipments made through the postal system. These measures are designed to enhance the competitiveness of MSME exporters, particularly from smaller towns and remote areas.

Key Points: PSBs Sanction Rs 52,300 Crore to MSMEs via Digital Loans

  • 3.96 lakh MSME loans sanctioned
  • Rs 52,300 crore total value
  • Digital Credit Assessment Model (CAM) used
  • Export incentives extended to postal shipments
2 min read

PSBs sanction over 3.96 lakh MSME loan applications worth Rs 52,300 crore in April-Dec 2025

Over 3.96 lakh MSME loan applications sanctioned digitally by PSBs from April-Dec 2025, streamlining credit with instant approvals and reduced paperwork.

"Borrowers need not visit branches for applying the loan. MSME promoters have the flexibility to apply for loan from anywhere on 24/365 basis. - Finance Ministry"

New Delhi, Jan 19

More than 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 government said on Monday.

The PSBs launched Credit Assessment Model (CAM) based on digital footprints for Micro, Small and Medium Enterprises (MSMEs) last year.

According to Ministry of Finance, this credit assessment model leverages the digitally fetched and verifiable data available in the ecosystem and devise 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 official statement further said that digital footprints are used by the model for KYC authentications, mobile and email verifications, GST data analysis, bank statement analysis (using account aggregator), ITR verification and due diligence using Credit Information Companies (CICs) data and fraud checks, among others.

Moreover, the benefits to MSMEs by use of such models include submission of application from anywhere through online mode, reduced paperwork and branch visits, instant sanctions through digital mode, seamless processing of credit proposals, end to end straight through process (STP), reduced turnaround time (TAT), Credit decision based on objective data/Transactional behaviour and credit history and integration of credit guarantee schemes like CGTMSE.

"Borrowers need not visit branches for applying the loan. MSME promoters have the flexibility to apply for loan from anywhere on 24/365 basis. Uploading of the required documents is enabled and no necessity to submit physical copies during approval of the loans," said the ministry.

Meanwhile, in a bid to strengthen India's e-commerce and MSME sectors, the government last week extended export incentives to postal shipments, with effect from January 15.

The Central Board of Indirect Taxes and Customs (CBIC) said it has extended export-related benefits under the Duty Drawback, Remission of Duties and Taxes on Exported Products (RoDTEP) and Rebate of State and Central Taxes and Levies (RoSCTL) schemes to exports made through the postal mode in electronic form, with effect from January 15.

The incentives are expected to significantly enhance competitiveness of MSME exporters, especially from smaller towns and remote areas, and give a major fillip to postal exports, Finance Ministry said in a statement.

- IANS

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Reader Comments

S
Shreya B
Great numbers, but the real test is on the ground. My uncle applied for a loan through a PSB's digital portal last month and is still waiting. The sanction might be instant for some, but the disbursement needs to be faster too. Hope the system improves.
A
Aman W
Integrating GST and ITR data is smart. It rewards honest taxpayers and businesses with clean records. This should encourage more MSMEs to be fully compliant, which is good for the economy in the long run.
P
Priyanka N
The extension of export incentives to postal shipments is the bigger news here! This will be a massive boost for artisans and small manufacturers in tier-2 and tier-3 cities who rely on India Post. Brilliant move to include them in the export boom.
D
David E
Working with fintech clients in India, I've seen the potential of digital underwriting. Using account aggregators for bank statement analysis is a world-class practice. This CAM model could set a benchmark for other developing economies. Impressive scale.
K
Kavya N
Hope the banks provide adequate training to their staff and customers. For many first-generation entrepreneurs in smaller towns, navigating a fully digital loan process can be daunting. There should be a robust helpline and support system in place.

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