New Delhi, Jan 19 (AHN) More than 3.96 lakh MSME loan applications amounting to more than Rs 52,300 crore have been sanctioned by the Public Sector Banks (PSBs) under the digital credit underwriting programmes (between April 1 and December 31, 2025), the government said on Monday.

The PSBs launched Credit Assessment Model (CAM) based on digital footprints for Micro, Small and Medium Enterprises (MSMEs) last year.

According to Ministry of Finance, this credit assessment model leverages the digitally fetched and verifiable data available in the ecosystem and devise automated journeys for MSME Loan appraisal using objective decisioning for all loan applications and model-based limit assessment for both Existing to Bank (ETB) as well as New to Bank (NTB) MSME borrowers.

The official statement further said that digital footprints are used by the model for KYC authentications, mobile and email verifications, GST data analysis, bank statement analysis (using account aggregator), ITR verification and due diligence using Credit Information Companies (CICs) data and fraud checks, among others.

Moreover, the benefits to MSMEs by use of such models include submission of application from anywhere through online mode, reduced paperwork and branch visits, instant sanctions through digital mode, seamless processing of credit proposals, end to end straight through process (STP), reduced turnaround time (TAT), Credit decision based on objective data/Transactional behaviour and credit history and integration of credit guarantee schemes like CGTMSE.

“Borrowers need not visit branches for applying the loan. MSME promoters have the flexibility to apply for loan from anywhere on 24/365 basis. Uploading of the required documents is enabled and no necessity to submit physical copies during approval of the loans,” said the ministry.

Meanwhile, in a bid to strengthen India’s e-commerce and MSME sectors, the government last week extended export incentives to postal shipments, with effect from January 15.

The Central Board of Indirect Taxes and Customs (CBIC) said it has extended 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 to exports made through the postal mode in electronic form, with effect from January 15.

The incentives are expected to significantly enhance competitiveness of MSME exporters, especially from smaller towns and remote areas, and give a major fillip to postal exports, Finance Ministry said in a statement.