New credit assessment model for MSMEs out

Union Finance and Corporate Affairs Minister, Nirmala Sitharaman on Thursday launched a new credit assessment model based on the scoring of digital footprints of MSMEs in the country.

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She was interacting with industry leaders and other stakeholders, including tax professionals, during a post-Budget meeting in Visakhapatnam.

It was announced in the Budget that public sector banks (PSBs) will build their in-house capability to assess MSMEs for credit, instead of relying on external assessment. PSBs will develop a new credit assessment model, based on the scoring of digital footprints of MSMEs in the economy.

“This model will leverage the digitally fetched and verifiable data available in the ecosystem and devise automated journeys for MSME loan appraisal using objective decision-making for all loan applications,” she said.