Digital footprint-based lending for MSMEs launched

Finance minister Nirmala Sitharaman on Thursday launched the new credit assessment model based on the scoring of digital footprints of micro, small and medium enterprises (MSMEs) to accelerate credit appraisal and disbursement process.

The credit assessment model for MSMEs based on digital footprints is expected to be a significant improvement over the traditional assessment of credit eligibility based only on asset or turnover criteria. That will also cover MSMEs without a formal accounting system, the finance ministry said in a statement.