Key Highlights
- The model uses objective decision-making and model-based limit assessment for both Existing to Bank (ETB) and New to Bank (NTB) borrowers, ensuring faster and more transparent credit decisions.
- Under this system, digital footprints are utilised for multiple stages of credit evaluation, including KYC authentication, mobile and email verification, GST data analysis, bank statement analysis through Account Aggregators, Income Tax Return (ITR) verification, credit history checks using Credit Information Companies (CICs), and fraud detection.
- As per the statement released by the Ministry of Finance, the digital model has brought substantial benefits to MSMEs by enabling online loan applications from anywhere, significantly reducing paperwork and branch visits, and providing instant in-principle sanctions.
- The end-to-end straight-through processing (STP) has led to a sharp reduction in turnaround time (TAT) and improved efficiency in credit delivery.
- The key features included instant in-principle sanction for MSME loans based on digital data such as GST, ITR, bank account statements and CIC reports; End-to-end digital loan journey through the Jan Samarth Portal for loan amounts within bank-defined thresholds.
