New Credit Assessment Model for MSMEs

Union Finance Minister and MoS, recently launched the New Credit Assessment Model for MSMEs in Vishakhapatnam as announced in Union Budget 2024-25.

• About New Credit Assessment Model for MSMEs: Public Sector Banks (PSBs) will develop in-house credit assessment capability instead of relying on external assessment.
• Objective: Assess MSMEs for credit based on digital footprints instead of traditional asset or turnover-based criteria.
• Automated Loan Appraisal: Uses digitally fetched and verifiable data for objective decision-making in loan applications.