%20(500%20%C3%97%20280%20px)%20(500%20x%20300%20px)%20(86).png "The New Credit Assessment Model for MSMEs launched by the Union Finance Minister")
Key Features:
a) To increase taxation on MSMEs
b) To simplify and speed up the loan process for MSMEs
c) To introduce new compliance regulations for MSMEs
d) To merge MSMEs with large enterprises
- Utilizes Digital Footprints: MSMEs' data such as GST records, bank statements, and income tax returns (ITRs) is used for credit evaluation, ensuring transparency and accuracy.
- In-house Capability of Banks: Public Sector Banks (PSBs) will use this model directly, reducing dependency on external agencies for credit assessments.
- Reduced Paperwork: With digital data at its core, the model streamlines documentation, making the loan process faster and more efficient.
- Inclusive Credit Access: It ensures even smaller MSMEs without formal accounting systems can access loans, promoting financial inclusion.
Question:
Q.1 What is the primary objective of the New Credit Assessment Model for MSMEs launched on March 5, 2025?a) To increase taxation on MSMEs
b) To simplify and speed up the loan process for MSMEs
c) To introduce new compliance regulations for MSMEs
d) To merge MSMEs with large enterprises
Answer: b) The model aims to streamline the credit assessment process by leveraging digital data, reducing paperwork, and ensuring quick loan approvals, thus promoting financial inclusion for MSMEs.
