Government of India, through Small Industries Development Bank of India (Sidbi), has launched an online marketplace which will enable In-Principle approval for MSME loans up to INR 1 Crore in 59 minutes from Public Sector Banks.
The online marketplace — PSBLoansIn59Minutes.com, is essentially a quick loan disbursal portal for the MSME sector where GST-registered micro, small and medium enterprises (MSMEs) can avail business loan from Rs 1 Lakh to Rs 1 Crore of in just 59 minutes.
MSME Support & Outreach programme will provide Small and Medium Enterprises easier availability of credit, access to markets and online loans up to ₹1 Crore in just 59 minutes#ModiWithMSME pic.twitter.com/RmQyoujHjt
— PIB India (@PIB_India) November 2, 2018
This Platform has reduced the loan processing turnaround time from 20-25 days to 59 minutes. Post receiving of In-Principle approval letter, the loan is expected to be disbursed in 7-8 working days.
The Rate of Interest starts from 8% onwards. Collateral Coverage is not Mandatory as the Platform is directly connected to CGTMSE scheme. Borrower should be GST, Income Tax compliant and must have Net Banking Facility
The loans are processed without human intervention till sanction and/or disbursement stage. On this platform, MSME borrower is not required to submit any physical document for In-Principle approval. The solution uses advanced algorithms to analyze data points from various sources such as IT returns, GST data, Bank Statements etc.
The Bank Statements/ GST/ ITR details uploaded by the borrower are analyzed in real time to provide required data to lenders, based on which the banker will take a decision on Sanctioning/Disbursing the proposal. “Please be ensured, your all personal and business specific data is secure,” claims the portal.