Enthused by the initial round of digital-footprint-based lending, the government is nudging public sector banks (PSBs) to increase the threshold for such loans to around Rs 1-2 crore from Rs 50 lakh. The enhanced thresholds could enable them to collectively achieve around Rs 1 lakh crore loan disbursement through this new model in 2025-26. It was announced in the Union Budget 2024-25 that PSBs will build their in-house capability to assess MSME for credit, based on the scoring of digital footprints of MSMEs, such as PAN, Goods and Service Tax and Income Tax data, electricity bills, etc. The new model provides an alternative than relying on the traditional assessment of credit eligibility based only on asset or turnover criteria.