New Delhi, Jan. 19 -- Small business financing in India has undergone a massive digital transformation, with Public Sector Banks (PSBs) sanctioning more than 3.96 lakh MSME loan applications between April 1 and December 31, 2025. These sanctions, totalling over Rs 52,300 crore, were made possible through the newly launched Credit Assessment Model (CAM).

This model, which leverages digital credit underwriting, represents a shift from traditional collateral-based lending to a system fueled by verifiable data and real-time digital footprints.

According to the press release bythe Ministry of Finance, "This credit assessment model leverages the digitally fetched and verifiable data available in the ecosystem and devise automated journeys for...