Government Launches New Digital Credit Assessment Model for MSMEs

07 Mar 2025 CW Team

In a significant move to enhance credit access for Micro, Small, and Medium Enterprises (MSMEs), Union Finance Minister Smt. Nirmala Sitharaman and Minister of State for Finance Shri Pankaj Chaudhary launched a New Credit Assessment Model during a post-budget interaction in Vishakhapatnam. The initiative, first announced in the Union Budget 2024-25, aims to revolutionize MSME financing by leveraging digitally fetched and verifiable data for automated loan appraisals.

A Shift Towards In-House Credit Assessment Public Sector Banks (PSBs) will now develop their own credit assessment models, reducing reliance on external agencies. This model will score MSMEs based on their digital footprints, offering a more comprehensive evaluation beyond traditional asset or turnover-based assessments.

The new system will introduce an automated, data-driven approach to loan approvals, enhancing transparency, efficiency, and accessibility for MSME borrowers. The model will cater to both Existing to Bank (ETB) and New to Bank (NTB) MSMEs, ensuring wider financial inclusion.

Key Features of the Digital Credit Assessment Model The model will integrate multiple real-time data sources to assess the creditworthiness of MSMEs, including:

PAN authentication via NSDL Mobile & email verification through OTP GST data fetched via API integration Bank statement analysis using Account Aggregators Income Tax Return (ITR) verification Commercial & consumer credit bureau checks Fraud detection through API-enabled Hunter checks

This data-driven approach will enable objective decision-making, reducing manual intervention and the risk of biased assessments.

Infrastructure Urban

29 Oct 2025

Designing Tomorrow: Amaravati’s Net Zero Landmark

Amaravati has achieved a defining landmark in India’s sustainable infrastructure journey with the inauguration of the APCRDA Project Office, the nation’s first government building to earn the IGBC Net Zero Energy Rating – Design Stage. Conceptualised by the Andhra Pradesh Capital Region Development Authority (APCRDA) and certified by the Indian Green Building Council (IGBC), the project exemplifies how governance, design and innovation can converge to deliver measurable environmental impact.A vision rooted in sustainabilitySet within a 4.3-acre site along the Seed Access Road in the Amar..

Pidilite Elevates Construction with PPS

Pidilite Industries introduced Pidilite Professional Solutions (PPS) — a dedicated vertical for the construction and interiors ecosystem — at ACETECH Bengaluru 2025. Designed to empower architects, developers, contractors, and interior specialists, PPS delivers comprehensive support that extends far beyond products to ensure project excellence from concept to completion. Kavinder Singh, Joint Managing Director, Pidilite Industries, noted, “At Pidilite, we believe in enabling the construction fraternity to build boldly and sustainably. With Pidilite Professional Solutions (PPS),..

Punjab, Centre Fast-Track Rajpura-Mohali Rail Line Development

The central government has fast-tracked the construction of the Rajpura-Mohali rail line to enhance connectivity in Punjab. This ambitious infrastructure project, aimed at improving transportation links between Rajpura and Mohali, has been identified as a key step in fostering regional economic growth. Union Minister for Railways, Ashwini Vaishnaw, announced the project’s acceleration during a recent assessment of the area. The rail line is expected to play a significant role in reducing travel time, promoting industrial growth, and boosting logistics efficiency in the region. The project,..