NEW DELHI: A total of 98, 995 MSME loan applications have been sanctioned by the public sector banks (PSBs) under New Credit Assessment Model between April 1 and July 15 this year, the government has informed.
Bank loans through new digital credit assessment model are decided within maximum of upto one day significantly reducing the turn around time (TAT) as compared to manual methods, said Minister of state for Finance, Pankaj Chaudhary, in a written reply to a question in the Lok Sabha.
The benefits to MSMEs by use of this model include submission of application from anywhere through online mode, reduced paperwork and branch visit, instant in-principle sanction through digital mode, seamless processing of credit proposals, reduced TAT, credit decision based on objective data/ transactional behaviour among others.
Under the new model, credit decision is based on objective data/ transactional behaviour and credit history of the borrower. Further, credit request submission and assessment is done entirely through digital process which reduces subjectivity, fraudulent submission of credit information and error in decision making.