Raise MSME digital loan limits: Centre

Encouraged by digital-footprint-based lending by public sector banks (PSBs) crossing Rs 1 lakh crore in 2025-26, the government is nudging banks to increase ticket sizes for such loans to accelerate credit flow to micro, small and medium enterprises (MSMEs) in FY27.

Ticket sizes under the digital-footprint-based lending model vary across banks, ranging from as high as Rs 5 crore at the State Bank of India (SBI) to Rs 1 crore at Punjab National Bank (PNB) and around Rs 25 lakh at smaller PSBs, sources told FE.