Government Banks Disburse Rs 52,300 Crore to MSMEs in 9 Months Through Digital Loans

• Public sector banks disbursed over Rs 52,300 crore in loans to MSMEs between April 1 and December 31, 2025.
• These loans were approved for more than 3.96 lakh MSME applications under digital loan assessment programs.
• PSBs launched a Credit Assessment Model (CAM) in 2025, utilizing digital activity records for MSME credit assessment.
• The CAM uses KYC, mobile/email verification, GST data, bank statements, ITR, and CIC data for automated assessment and fraud identification.
• The loan target for MSMEs by government banks for FY 2025-26 has been increased to Rs 17.31 lakh crore, a 19.5% rise.

Why It Matters: Government banks significantly boosted MSME lending with Rs 52,300 crore disbursed digitally in 9 months.