March 12, 2025
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Timely credit decisions for small enterprises-short decision timelines and digital, paperless lending to expand MSME finance.
Banks must furnish an indicative document checklist to MSE applicants and decide credit applications for small MSE loans within specified short timelines, guided by Board approved loan policies and prudential rules. The framework combines priority sector targets, collateral exemptions for small advances, simplified working capital computation and external benchmark linked pricing to expand access. Digital and market infrastructures - TReDS, account aggregators, unified lending interfaces, GST Sahay, Udyam Assist, digital credit scoring and online approval platforms - support automated, paperless loan appraisal, onboarding of informal micro enterprises and monitoring of outstanding dues, backed by credit guarantee schemes.