New Delhi, Jan. 16 -- The government has instructed state-owned banks to implement a uniform digital process for approving loans up to Rs 1 crore, with the goal of speeding up credit disbursement to micro and small enterprises (MSMEs), according to sources.

Integration with JanSamarth Portal

The complete lending process will be conducted via the JanSamarth portal, a digital platform for government-backed, credit-linked schemes. It enables banks to automatically access borrower information, including credit scores, income tax returns, GST data, and bank account details from various sources.

"Since the portal can pull comprehensive borrower information, there can be a standardised process for loan appraisal and sanctioning," said a senio...