New Delhi, December 2: The Central Government has rolled out a new Credit Assessment Model (CAM) aimed at transforming loan appraisal for Micro, Small and Medium Enterprises (MSMEs) through automated, data-driven evaluations. Minister of State for Finance Pankaj Chaudhary informed the Rajya Sabha that the model uses digitally verified data to create faster, objective and standardised loan journeys for both existing and new MSME borrowers.
Officials said the CAM platform will streamline credit decisions by relying on verifiable digital footprints, reducing manual intervention and enabling more reliable limit assessments for businesses seeking formal credit. The model is expected to significantly speed up MSME loan processing, a key demand from the sector.
Alongside MSME lending reforms, the Government, Reserve Bank of India (RBI) and National Payments Corporation of India (NPCI) have intensified efforts to boost digital payment transactions across the country. Current initiatives include the incentive programme to encourage RuPay debit card usage and low-value BHIM-UPI merchant payments, as well as the Payments Infrastructure Development Fund (PIDF) that supports deployment of POS terminals and QR codes in underserved and rural regions.
The government has also extended the PM SVANidhi Scheme—which supports street vendors with working capital loans—until March 31, 2030. Under the scheme, loan amounts have been enhanced to ₹15,000, ₹25,000 and ₹50,000 across three tranches. Beneficiaries can also access a UPI-linked RuPay credit card with a credit limit of ₹30,000, in addition to earning cashback incentives for digital transactions.
The initiatives collectively aim to expand formal credit access, deepen digital financial inclusion and strengthen the digital payments ecosystem nationwide, the Minister stated.
