PSBLoansin59minutes.com
The Finance Minister announced the transformative initiative in MSME credit space up to Rs 1 Crore within 59 minutes. SIDBI in consortium with PSB banks has come out with a web portal called www.psbloansin59mintes.com here the existing units as well as new units can go to the web portal and apply for credit facilities for Rs 1 lac to Rs 100 lacs online.
The requirement for online registration is of businesses GSTIN, details regarding IT returns in XML format and bank statement in PDF form for last 6 months. This platform is integrated with GST and ITR portals from where the data is accessed for processing the proposal. Once the required data is entered the system will process the proposal with reference to bench mark for approving the proposals and would come out with in-principle sanction within a period of 59 minutes without any human intervention
Moreover the platform is integrated with CGTMSE for checking the eligibility of the borrower for covering the account under the guarantee scheme. He can also choose the bank through which he would like to avail the credit facility.
Once the entrepreneur gets the In-Principle approval letter he can take the same to the bank of his choice and comply with other requirements like KYC, unit visits etc. The bank will appraise the proposal once it is satisfied regarding its viability and may issue final sanction letter and get the required documents executed by the entrepreneur for disbursal purpose. In certain cases banks may insist for collateral considering the size of the loan and its risk perception.
This portal is in operation for last three months and has so far approved loans worth Rs 30000 Crores for 40000 enterprises since its launch in November 2018.Out of the approved loans worth Rs 6400 Crores are sanctioned by the banks to about 24000 SMEs.
This system has expedited the issuance of in-principle sanctions as well as disbursal time to considerable extent. The units which are tax compliant and with proper books of accounts would be benefited in availing credit on fast track basis.
Article Contributor:
Mr. Ashok Magdum
Mentor, deAsra
Mr. Magdum has 37 years of experience in banking, law, finance and psychology. He was a member of the board of administration at Maharashtra State Co-operative bank, Mumbai during 2015-17.
