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    Question

    What is the primary goal of the New Credit Assessment

    Model for MSMEs launched by the Union Finance Minister?
    A To increase external credit rating agencies' role in MSME loan approvals Correct Answer Incorrect Answer
    B To eliminate the need for MSMEs to provide any financial documentation Correct Answer Incorrect Answer
    C To reduce reliance on external evaluations and use digital footprints for credit scoring Correct Answer Incorrect Answer
    D To make physical collateral mandatory for all MSME loans Correct Answer Incorrect Answer
    E To replace GST data analysis with manual loan approvals Correct Answer Incorrect Answer

    Solution

    The New Credit Assessment Model for MSMEs aims to reduce reliance on external evaluations and use digital footprints for credit scoring, improving access to credit.

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