New Delhi, May 23 -- Encouraged by digital-footprint-based lending by public sector banks (PSBs) surpassing Rs 1 lakh crore in 2025-26, the government is urging lenders to increase loan ticket sizes under the model to further accelerate credit flow to micro, small and medium enterprises (MSMEs) in FY27.

The digital lending framework, announced in the Union Budget 2024-25, enables PSBs to assess MSME borrowers using digital footprints such as PAN details, GST records, income tax filings, electricity bills and transaction histories, offering an alternative to traditional credit assessment methods based on assets or turnover.

Loan Limits Vary as Banks Scale Up Digital Credit Models

Loan limits under the model currently vary across banks. ...