PSB loans in 59 Minutes: Rs. 68,636 crore (US$ 8.25 billion) worth of loans have been disbursed to MSMEs till August 1
Since the launch of the 59-minute loan portal in November 2018, credit sanctioned under the government and Small Industries Development Bank of India’s (SIDBI) 59-minute loan approval scheme for MSMEs-PSB loans in 59 Minutes, increased to 246,997 involving Rs. 85,054 crore (US$ 10.23 billion) as of August 1, 2023.
According to the data from the MSME Ministry's dashboard, 228,118 loans of Rs. 68,636 crore (US$ 8.25 billion) were issued out of the total loans sanctioned. In contrast, up until July 2022, 224,002 loans of Rs. 66,471 crore (US$ 7.99 billion) were disbursed.
An MSME can obtain a business loan from Rs. 1 lakh-5 crore (US$ 1,203.34-601,670), according to the loan portal. The preferred lender, selected by the borrower before submitting the application determines whether to sanction/disburse the loan amount, after receiving digital approval.
While there is no price for registration, the borrower must pay a fee of Rs. 1,000 (US$ 12.03) to receive digital approval if their loan proposal matches one of the lenders' loan packages.
The information and paperwork submitted by the borrower on the portal and with the selected bank will determine how long it takes for the loan to be disbursed. The loan should typically be sanctioned or released in 7-8 working days after receiving digital approval.
Furthermore, although the borrower can apply for the loan without submitting any collateral security, the bank has the option to do so, as per the information on the portal.
Along with Mudra loans, MSMEs can apply for term loans and working capital loans to buy new equipment, advance technology, extend product lines, procure raw materials, and build infrastructure, among other things.
According to the data from the Reserve Bank of India on monthly sectoral deployment, in June 2023, Rs. 21.14 lakh crore (US$ 250 billion) of India's total non-food bank credit worth Rs. 143.6 lakh crore (US$ 1.73 trillion), or 14.7% of India's total non-food bank credit, was deployed in the MSME sector, up from Rs. 20.20 lakh crore (US$ 240 billion), or 14.5% of India's total non-food bank credit worth Rs. 138.5 lakh crore (US$ 1.67 trillion), in May 2023.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.