Credit Assessment Model (CAM) Launched to Simplify MSME Loan Approvals

Exam-focused facts from the 4 December 2025 current affairs briefing.

Key facts

The Government of India has rolled out a Credit Assessment Model (CAM) aimed at transforming loan appraisal for Micro, Small, and Medium Enterprises (MSMEs).
CAM leverages digitally sourced, verifiable data from across the financial ecosystem to enable automated, objective, and transparent loan evaluation.
The model caters to both Existing-to-Bank (ETB) and New-to-Bank (NTB) MSME borrowers, offering model-based credit limit assessments to accelerate decision-making and enhance the efficiency of lending processes.