Public Sector Banks Sanction Over Rs 52,300 Crore MSME Loans Using Digital Credit Model

Between April 1 and December 31, 2025, public sector banks sanctioned over 3.96 lakh MSME loan applications totaling more than Rs 52,300 crore under digital credit underwriting programmes. These programmes use a Credit Assessment Model leveraging digital footprints such as KYC, GST data, bank statements, and credit information to automate loan appraisal for both existing and new MSME borrowers. Benefits include online application submission, reduced paperwork, faster processing, and objective credit decisions based on transactional data.