Government Launched Credit Assessment Model (CAM) to Ease Loan Approval for MSMEs

The Government of India has introduced a new Credit Assessment Model (CAM) to transform the loan appraisal process for Micro, Small & Medium Enterprises (MSMEs). The newly launched CAM model utilises digitally sourced and verifiable data available across the financial ecosystem to create automated, objective, and data-driven loan evaluation journeys.

CAM supports both Existing-to-Bank (ETB) and New-to-Bank (NTB) MSME borrowers by enabling model-based credit limit assessments and enhancing transparency and efficiency in credit decision-making.

Strengthening the Digital Payments Ecosystem

To accelerate the adoption of digital payments, the Government, the Reserve Bank of India (RBI), and the National Payments Corporation of India (NPCI) have undertaken several initiatives. These include:

• Incentive schemes to promote the use of RuPay debit cards and low-value BHIM-UPI (P2M) transactions.
• The Payments Infrastructure Development Fund (PIDF) scheme, designed to boost the deployment of digital payment infrastructure, such as POS terminals and QR codes in underserved and remote regions.

These initiatives collectively aim to deepen financial inclusion and strengthen the country's digital payments framework.

Extension of PM SVANidhi Scheme

The Pradhan Mantri Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) Scheme, launched on June 1, 2020, has now been extended until March 31, 2030. It is jointly implemented by the Ministry of Housing and Urban Affairs (MoHUA) and the Department of Financial Services (DFS).

Under the scheme:

• Street vendors can avail loans of ₹15,000, ₹25,000, and ₹50,000 in three progressive tranches to support and expand their businesses.
• Additional benefits include a UPI-linked RuPay Credit Card with a credit limit of ₹30,000, along with cashback incentives to encourage digital transactions.

Also Read: UIDAI Noted 231 Crore Aadhaar Authentication in Nov 2025: Signals Strengthening Digital Economy

Conclusion

The extension and enhancements aim to elevate financial empowerment, digital adoption, and sustainable livelihood support for street vendors across the country.

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