To boost the Digital India initiative, the government has approved nearly four lakh loan applications worth over ₹53,000 crore for the MSME sector under the new Credit Assessment Model. This digital system simplifies the loan approval process by reducing paperwork and enabling faster, hassle-free access to credit for applicants.
CAM: A progressive reform to empower businesses
New Delhi: The Public Sector Banks have sanctioned over Rs 52,300 crore loans to the micro, small and medium businesses (MSMEs) under new digital credit assessment system in the first nine months (April-December) of the current financial year 2025-26.
The PSU banks approved more than 3.96 lakh MSME loan applications under this new system. The total value of these loans is over Rs 52,300 crore, the Government said in an official statement. These loans were sanctioned using a new Credit Assessment Model (CAM) that relies on digital data instead of traditional paperwork.
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Earlier, MSME owners had to submit many physical documents and visit bank branches multiple times to get a loan approved. As a result, many promising entrepreneurs remained regulation-bound and were unable to scale their businesses to their full potential.
Recognizing this challenge, the government introduced a progressive reform through a strategic, reform-oriented intervention aimed at unlocking growth and enabling entrepreneurship.
Now, banks use digitally available and verified data to assess loan applications. This includes:
GST records
Income Tax Returns (ITR)
Bank account statements
Credit history from credit bureaus
Mobile number and email verification
As stated by the Ministry of Finance, this digital model makes the loan process faster, more transparent, and more reliable.
With this new system, small business owners can:
Apply for loans completely online based on digital footprints of the customer (GST, ITR, Bank A/c Statement, CIC reports etc).
Avoid repeated visits to bank branches with physical documents.
Get quick in-principle approval through portal.
Complete the loan process digitally from start to finish without any hassle.
Receive faster loan decisions with due diligence.
The facility is available for both existing bank customers and new borrowers, the ministry said.
All MSME loan applications under this system are processed through the Jan Samarth Portal, a government-backed digital platform.
According to the Ministry of Finance, the portal is directly linked with banks and government databases, which helps in quick verification, faster approval, and reduced paperwork.
Jan Samarth Portal
Because the entire process is digital, new entrepreneurs get:
Paperless governance model.
Time-efficient approvals.
Liquidity support.
Strengthened business ecosystem.
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As per the Ministry of Finance, MSME owners can now apply for loans 24×7, throughout the year, from anywhere. Once the application is completed, the loan decision is communicated online, often in a very short time.
