Visakhapatnam, 6 March (IANS). Finance Minister Nirmala Sitharaman and Minister of State for Finance Pankaj Chaudhary on Thursday launched a new Credit Assessment Model for Micro, Small and Medium Enterprises (MSME).
The new credit assessment model will be scored on the basis of digital footprint of MSME.
The Finance Minister had announced in the Union Budget 2024-25 that instead of evaluating MSMEs through a third party, the public sector bank (PSB) would with its internal capacity.
A dialogue held after the budget at Visakhapatnam launched a loan assessment model for MSME based on digital footprint. It is expected that this will prove to be better than the traditional assessment of loan eligibility based on assets or turnover criteria only. It will also cover MSME with no formal accounting system.
The official statement said that the PSB will develop a new credit assessment model based on the scoring of MSME’s digital footprint in the economy. This credit assessment model will avail digitally received and verified data available in ecosystem and will prepare an automated route for the MSME loan assessment using the model-based limit assessment for both the existing (ETBs) for the bank and the new (NTB) MSME borrowers for the bank.
Digital footprints used by the model may include name and PAN certification, mobile and email verification using OTP using NSDL, API Fatch of GST data through service providers, bank statement analysis, ITR uploads and verification, ATR upload and verification, API can include Hunter testing and cheating etc.
The statement further said that in the benefits of MSME from the use of this model, subitting the application from anywhere through the online mode, the branch for paperwork, the immediate in-principle approval through digital mode, the uninterrupted process of loan proposals, the uninterrupted process, end-to-straight-tonu process (STP), low turnery time (TAT), Loan Time (TAT), Loan Time (TAT) Laion Decision, Late Time (TAT) on the basis of credit history. There are no physical securities for loans covered under CGTMSE, etc.
-IANS
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