Chennai, 6 March (H.S.): In a significant move to bolster the growth of Micro, Small, and Medium Enterprises (MSMEs), Finance Minister Nirmala Sitharaman launched a new credit assessment model on Thursday. The innovative framework is designed to facilitate easier access to credit for MSMEs, driving economic growth and job creation.

The new credit assessment model leverages advanced data analytics and artificial intelligence to evaluate the creditworthiness of MSMEs. This approach is expected to reduce the reliance on traditional collateral-based lending, enabling more MSMEs to access formal credit channels.

According to Sitharaman, the new model will provide a more accurate and comprehensive assessment of MSMEs’ creditworthiness, reducing the risk of loan defaults. The Finance Minister emphasized the government’s commitment to supporting the growth of MSMEs, which are a vital component of the Indian economy.

The launch of the new credit assessment model is part of a broader initiative to strengthen the MSME sector, which has been impacted by the COVID-19 pandemic. The government has introduced various measures to support MSMEs, including the Emergency Credit Line Guarantee Scheme (ECLGS) and the Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGTMSE).

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Hindusthan Samachar / Dr. R. B. Chaudhary