The Ministry of Finance (MoF) on March 06, 2025, issued a notification regarding the launch of the New Credit Assessment Model for MSMEs.
The following has been stated: -
•The Union Finance Minister and MoS, Finance, launched a new MSME credit assessment model, announced in the Union Budget 2024-25. This model uses digital footprints for automated loan appraisal.
•The model leverages verifiable data such as GST, bank statements, ITR, and fraud checks, offering benefits like reduced paperwork, instant sanction, and no physical collateral for CGTMSE-covered loans.
•It aims to improve MSME access to credit with objective data-driven decisions.
The detailed notification is given in the document below.
[Notification No. 2108812]
