Public sector banks have sanctioned MSME loans worth over Rs 52,300 crore under a digital credit model as government directions drive lenders toward a faster and more unified lending process. The focus is on improving access to credit for micro and small enterprises by enabling loan sanctions of up to Rs. 1 crore through a common digital framework.
As part of this move, all eligible MSME loan proposals are being routed through the JanSamarth portal. This digital platform supports government backed credit linked schemes and allows banks to follow a single, standardized process for loan appraisal and approval. The shift is aimed at reducing turnaround time and improving consistency across state owned lenders.
Through the JanSamarth portal, banks can automatically access borrower data from multiple sources. This includes credit scores from various agencies, records from credit information companies, income tax returns, GST filings and bank account details. The integrated system enables lenders to assess eligibility and sanction loans digitally, improving efficiency while ensuring uniform appraisal standards.
MSME lending has shown strong growth in recent years. During FY25, lenders disbursed around Rs 26.43 lakh crore to the MSME sector, covering nearly 13 million accounts. A report by a rating agency noted that incremental MSME credit rose sharply to 32.5% during January to October 2025, compared with 17.7% in the same period a year earlier. This increase was largely driven by public sector banks and supported by a preference for secured lending and revised MSME classification norms.
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