The entire lending process will be routed through the JanSamarth portal, a digital platform for government-sponsored credit-linked schemes, which allows banks to automatically pull borrower data including credit scores from multiple sources, according to the people.
“Since the portal has a mechanism to fetch details such as credit scores from credit information companies, income tax returns and goods and services tax (GST) data, besides bank account details, there can be a standardised process for loan appraisal and sanctions,” said a bank executive, who did not wish to be identified. The move is expected to fast-track loan applications and reduce the rejection rate.
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Preference for Secured Lending
In 2024-25, about ₹26.43 lakh crore was disbursed in loans to MSMEs through 13 million accounts.
The initiative is in line with the government’s agenda to strengthen MSMEs and make credit more easily accessible, with a focus on digital loans and robust cash-flow-based underwriting models.
“Already, most banks have adopted a common application for MSME loans up to ₹1 crore. Through the JanSamarth portal, borrowers will be able to choose from different banks, and stage-wise information on loan applications will be made available,” said another bank executive, who also spoke on condition of anonymity.
According to a recent report by rating agency Crisil, the share of incremental credit extended to MSMEs increased to 32.5% in January-October 2025 from 17.7% in the year-ago period. “The proportion of MSMEs in outstanding credit increased 174 basis points, primarily driven by robust disbursements from public sector banks (PSBs).
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This growth can be attributed to banks’ strategic preference for secured lending, and to some extent, changes in the MSME classification criteria following revisions to their definition,” it said.