New Delhi, Sep 25 (UNI) Union Finance Minister Arun Jaitley on Tuesday launched a transformative initiative in micro, small and medium enterprises (MSME) credit space in which they can take loans up to Rs 1 crore within 59 minutes only.
The web portal www.psbloansin59minutes.com will enable in principle approval for MSME loans up to Rs 1 crore within 59 minutes from SIDBI and 5 Public Sector Banks (PSBs) — SBI, Bank of Baroda, PNB, Vijaya and Indian Bank, Jaitley said.
He was addressing a press conference after chairing annual review meeting of the public sector banks.
He said it was a strategic initiative of the SIBDI-led PSB consortium incubated under the aegis of Department of Financial Services (DFS).
“The portal sets a new benchmark in loan processing and reduces the turnaround time from 20-25 days to 59 minutes. Subsequent to this in principle approval, the loan will be disbursed in 7-8 working days,” he added.
A user friendly platform has been built where MSME borrower is not required to submit any physical document for in-principle approval. The solution uses sophisticated algorithms to read and analyse data points from various sources such as IT returns, GST data, bank statements, and MCA21 in less than an hour while capturing the applicants basic details using Smart analytics from available documents.
The system simplifies the decision making process for a loan officer as the final output provides a summary of credit, valuation and verification on a user-friendly dashboard in real time.