New Delhi, Jan. 19 -- Public Sector Banks (PSBs) have sanctioned more than 3.96 lakh loan applications amounting to over Rs 52,300 crore to Micro, Small and Medium Enterprises (MSMEs) under a new digital Credit Assessment Model (CAM) between 1 April and 31 December 2025.

The CAM, introduced by PSBs in 2025, is based on digital credit underwriting and leverages the digital footprints of MSME borrowers to enable automated, data-driven loan appraisal.

The model applies to both existing-to-bank (ETB) and new-to-bank (NTB) borrowers and is designed to streamline credit assessment through objective, model-based decision-making.

Under the framework, loan appraisal is carried out using digitally fetched and verifiable data available within the...