Government launches Credit Assessment Model for MSMEs

• 04 Dec 2025
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Recently, the Government of India launched the Credit Assessment Model (CAM) for the Micro, Small and Medium Enterprises (MSMEs). To create automated processes for MSME loan appraisals, the model utilizes digitally sourced and verifiable data available within the ecosystem. It employs objective decision-making for all loan applications and model-based limit assessments for both Existing to Bank (ETB) and New to Bank (NTB) MSME borrowers.

The Government, Reserve Bank of India (RBI) and National Payment Corporation of India (NPCI) have taken up various measures for the promotion of digital payment transactions. These include, but are not limited to, incentive schemes for promoting RuPay Debit Cards and low value BHIM-UPI transactions and Payments Infrastructure Fund to support digital payment infrastructure’s deployment in the underserved areas.

Moreover, the Pradhan Mantri Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) Scheme launched on 1 June 2020 has now been extended till 31 March 2030. The scheme has been jointly implemented by the Department of Financial Services and Ministry of Housing and Urban Affairs (MoHUA). 

Under the scheme, loans provided to street vendors to support their businesses have been increased to Rs. 15,000, Rs. 25,000 and Rs. 50,000 respectively in three different tranches. Additional features of the scheme include a UPI-linked RuPay credit card with a credit limit of Rs. 30,000 and cashback incentives for digital transactions. 

The Minister of State in the Ministry of Finance, Shri Pankaj Chaudhary, provided this information in a written response to a question in Rajya Sabha on 2 December 2025.

Source: Press Information Bureau (PIB)