The Government of India has rolled out a Credit Assessment Model (CAM) aimed at transforming loan appraisal for Micro, Small, and Medium Enterprises (MSMEs). The new model leverages digitally sourced, verifiable data from across the financial ecosystem to enable automated, objective, and transparent loan evaluation.
CAM caters to both Existing-to-Bank (ETB) and New-to-Bank (NTB) MSME borrowers, offering model-based credit limit assessments to accelerate decision-making and enhance the efficiency of lending processes.
Boosting Digital Payments Adoption
To support digital finance, the Government, in collaboration with the Reserve Bank of India (RBI) and National Payments Corporation of India (NPCI), has introduced several initiatives:
- Incentives for RuPay debit cards and low-value BHIM-UPI (P2M) transactions
- The Payments Infrastructure Development Fund (PIDF) scheme, which promotes POS terminals and QR code deployment in underserved and remote areas
These measures aim to expand financial inclusion and strengthen India’s digital payments ecosystem.
Extension of PM SVANidhi Scheme for Street Vendors
The Pradhan Mantri Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) Scheme, launched in June 2020, has now been extended until March 31, 2030. Jointly managed by the Ministry of Housing and Urban Affairs (MoHUA) and the Department of Financial Services (DFS), the scheme provides:
- Loans of ₹15,000, ₹25,000, and ₹50,000 in progressive tranches to help street vendors expand their businesses
- A UPI-linked RuPay Credit Card with a ₹30,000 credit limit
- Cashback incentives to encourage digital transactions
Summary
India launches the Credit Assessment Model (CAM) to simplify MSME loan approvals using automated, data-driven evaluations. Complementary initiatives, including incentives for digital payments and the extended PM SVANidhi Scheme, aim to boost financial inclusion and empower small businesses across the country.
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