Public Sector Banks (PSBs) have approved more than 3.96 lakh loan requests from Micro, Small and Medium Enterprises (MSMEs), with the total approved credit surpassing Rs. 52,300 crore (US$ 6.30 billion) from 1 April to 31 December 2025, as stated in a release by the Press Information Bureau. The loans received approval through a newly developed Credit Assessment Model that utilizes digital credit underwriting systems to streamline the credit evaluation procedure for MSMEs. The model employs digital information and analytics to evaluate creditworthiness more effectively, greatly minimizing documentation needs and allowing quicker loan approvals for qualifying businesses. This digital method focuses on broadening access to formal credit for a larger group of MSMEs, encompassing new borrowers and smaller entities that have historically encountered difficulties in obtaining institutional funding. The initiative highlights the Government of India’s commitment to enhancing access to formal credit for Micro, Small and Medium Enterprises (MSMEs), essential for job creation, innovation, and increasing domestic value. Through the use of technology in credit evaluations, Public Sector Banks (PSBs) are enhancing response times and handling credit risk more efficiently, which in turn broadens financial inclusion in the MSME sector. The approved loans are anticipated to aid working capital needs, business growth, and investment in productive resources, improving the operational capacity of MSMEs in various sectors. The implementation of digital underwriting methods signifies a crucial advancement in modernising MSME financing, aligning with wider policy initiatives aimed at boosting credit availability, promoting business expansion, and extending the formal financial system's accessibility to smaller enterprises throughout India.