Micro, small and medium enterprises (MSMEs) can now secure in principle approval of loans up to Rs 5 crore in just 59 minutes under the ‘PSB Loans in 59 Minutes’ scheme.
To faciliate easy access, five of the country's largest state-owned banks – State Bank of India, Union Bank of India, Oriental Bank of Commerce, Corporation Bank, Andhra bank – have joined hands to offer loan of up to Rs 5 crore to MSMEs on their platforms.
Also Read: MSME loan in 59 minutes: Here's a step-by-step guide on how to get funding worth Rs 1 crore
The Centre launched the platform to provide hassle-free financial assistance to MSME borrowers. Earlier, the in-principle loan amount was set at Rs 1 crore.
The platform functions through advanced algorithms to analyse data points from several sources such as Income Tax returns, GST data, Bank Statements, etc. Once the borrower uploads required information, the proprietary algorithms on the website appraise the application, determine the loan amount that can be sanctioned and then connect the applicant to the banks' branch – all in under 59 minutes.
“The highlight of operating through the platform is, it quickens sanction time and increases transparency. This is a part of our ongoing journey towards uplifting the sunrise sector of the country. With the increase in the loan limit to 5 crore we are sure that this will broaden the playing field for the MSME sector,” Devi Shankar Mishra, CGM- MSME at SBI said in a statement.
First Published: Jul 23, 2019 1:08 PM IST
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