Indian Economic Updates : Government to Launch Creditworthiness Index for MSMEs, Boost Credit Access
The government is engaging with banks and regulators to create a "Creditworthiness Index" aimed at improving credit access for micro and small businesses. The index will evaluate companies across industries using standardized parameters, enabling lenders to assess borrowers with limited financial history. This initiative aligns with broader efforts to form a National Trade Finance Committee and expand export credit. Discussions involve ministries, the RBI, and Exim Bank, with the index expected to follow public sector banks’ new MSME credit assessment model. Banks are also developing digital footprint-based credit ratings to address MSMEs’ challenges with costly external credit rating services.
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