New Delhi, Jan 19 (NationPress) The Public Sector Banks (PSBs) have granted approval to more than 3.96 lakh MSME loan applications, amounting to over Rs 52,300 crore, as part of their digital credit underwriting initiatives between April 1 and December 31, 2025, according to a government announcement made on Monday.

The PSBs introduced the Credit Assessment Model (CAM) last year, which relies on digital footprints for the evaluation of Micro, Small and Medium Enterprises (MSMEs).

The Ministry of Finance indicates that this model utilizes digitally sourced and verifiable data from the ecosystem to create automated processes for MSME loan evaluations, employing objective decision-making for all loan requests, as well as model-based limit assessments for both Existing to Bank (ETB) and New to Bank (NTB) MSME borrowers.

Additionally, the statement elaborates that this model utilizes digital footprints for KYC authentications, mobile and email confirmations, GST data analysis, bank statement evaluations (using account aggregators), ITR verification, and thorough due diligence through Credit Information Companies (CICs) data, including fraud checks.

Benefits for MSMEs using this digital model include the ability to submit applications online from any location, minimized paperwork and branch visits, instant approvals through digital means, streamlined processing of credit proposals, a comprehensive straight-through process (STP), reduced turnaround times (TAT), credit decisions based on objective data and transactional behavior, and the integration of credit guarantee schemes such as CGTMSE.

“Borrowers can apply for loans without needing to visit branches. MSME promoters can access loan applications from anywhere at any time, 24/7. Document uploads are facilitated, eliminating the need for physical copies during loan approval,” stated the ministry.

In related news, to bolster India’s e-commerce and MSME sectors, the government recently expanded export incentives for postal shipments, effective from January 15.

The Central Board of Indirect Taxes and Customs (CBIC) announced the extension of 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 for electronic postal exports starting January 15.

These incentives are anticipated to significantly boost the competitiveness of MSME exporters, particularly those in smaller towns and remote areas, and provide a substantial uplift to postal exports, as per the Finance Ministry’s statement.