Government launches credit assessment model to boost MSME lending.
1. What is the new model — Credit Assessment Model (CAM) The government has introduced a new digital-first Credit Assessment Model (CAM) aimed at streamlining loan appraisal for small businesses — particularly Micro, Small and Medium Enterprises (MSMEs).CAM is designed to provide automated, data-driven credit evaluation that relies on digitally verifiable data rather than traditional subjective or collateral-based assessments. 2. How CAM works — Data-driven, digital footprints and automation The assessment uses a variety of digital footprints/data sources — such as PAN authentication, GST data, bank statements (via account-aggregator), ITR uploads, bureau credit data, mobile/email verification, and other API-enabled verifications. The process is automated: loan applications can be submitted online, without heavy paperwork or repeated branch visits. For both existing clients of a bank (“Existing-to-Bank” / ETB) and new clients (“New-to-Bank” / NTB), the model provides o...