<h1>New Credit Assessment Model for MSMEs Uses Digital Data for Quick Loan Approvals and Reduced Paperwork</h1> The Union Finance Minister and Minister of State for Finance have launched a new Credit Assessment Model for MSMEs, as announced in the Union Budget 2024-25. This model utilizes digitally sourced and verifiable data to automate MSME loan appraisals. Public sector banks will now assess MSMEs' creditworthiness internally, using digital footprints such as PAN authentication, GST data, and bank statement analysis. The model offers benefits like online application submission, reduced paperwork, instant digital sanctions, and quicker processing times. It aims to improve credit assessment by focusing on transactional behavior and credit history rather than just assets or turnover.