Public sector banks (PSBs) have sanctioned 396,000 MSME loans worth more than ₹52,300 crore till December 31, 2025 under the digital Credit Assessment Model (CAM), following its launch on April 1, 2025.
The CAM marks shift from traditional, paper-heavy appraisal processes toward a data-driven, technology-enabled framework.
It leverages digitally fetched and verifiable information available across the financial ecosystem to create automated, end-to-end loan journeys for MSME borrowers.
The model enables objective decision-making for all applications and uses model-based limit assessment for both existing-to-bank (ETB) and new-to-bank (NTB) customers, reducing subjectivity and processing delays.
Digital Footprint Core
At the core of CAM is the use of digital footprints for comprehensive due diligence. These include KYC authentication, mobile and email verification, Goods and Services Tax (GST) data analysis, bank statement analysis through the Account Aggregator framework, Income Tax Return (ITR) verification, and credit checks using data from credit information companies (CICs).
Fraud checks and other risk controls are seamlessly integrated into the workflow, ensuring robust appraisal without compromising speed. The system also enables direct linkage with credit guarantee schemes such as the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).
A key feature of the model is instant in-principle sanction based on digital data such as GST returns, bank account statements, and credit bureau reports. Loan applications within defined thresholds are sourced through a fully digital, end-to-end journey on the Jan Samarth Portal, ensuring uniform access across geographies.
Automated data pulls through APIs allow faster decision-making and sharply reduced turnaround times.
For MSMEs, the benefits are significant. Borrowers can apply for loans anytime and from anywhere without visiting bank branches. Document submission is fully digital, eliminating the need for physical paperwork during the approval stage.
Predictability and Growth
Most importantly, applicants receive online credit decisions immediately upon completing the application, improving predictability and cash-flow planning. By combining speed, transparency, and scale, the digital CAM is strengthening MSME access to formal finance and supporting broader economic growth.
CAM was announced in the Union Budget 2024–25, which stated that PSBs would build in-house capabilities to assess MSME creditworthiness based on the scoring of digital footprints such as PAN, GST and income tax data, electricity bills, and other verifiable information. The new model is intended as an alternative to traditional credit assessment methods that rely largely on asset or turnover criteria.
The country’s largest bank by assets, State Bank of India, began digital-footprint-based lending in January 2025, while other PSBs rolled out the model from April in the current financial year.