The scheme, facilitated by the digital lending platform Online PSB Loans, enables in-principle bank approval for collateral-free term loans or working capital loans to MSMEs from Rs 10 lakh to Rs 5 crore in 59 minutes.
The government’s 59-minute loan approval scheme for MSMEs has sanctioned 2.49 lakh loans involving Rs 86,820 crore as of August 30, 2024, growing by a paltry 1.21 per cent from the year-ago period, official data from the MSME Ministry’s Dashboard showed. As of September 1, 2023, 2.47 lakh loans involving Rs 85,194 crore were sanctioned, up by only 2.27 per cent from 2.41 lakh loans sanctioned as of September 1, 2022 since the scheme’s launch in November 2018.
Out of total loans sanctioned, the disbursement volume also saw a flat 0.8 per cent growth to 2.30 lakh loans involving Rs 69,926 crore as of August 30 from 2.28 lakh loans involving Rs 68,729 crore disbursed as of September 1, 2023.
As of January 1, 2024, 2.48 lakh loans were sanctioned, of which 2.29 lakh were disbursed. In terms of the amount, Rs 85,980 crore loans were sanctioned while Rs 69,240 crore loans were disbursed.
The scheme, facilitated by the digital lending platform Online PSB Loans, enables in-principle bank approval for collateral-free term loans or working capital loans to MSMEs from Rs 10 lakh to Rs 5 crore in 59 minutes. MSMEs can seek collateral-free loans under the scheme while it is as per the bank’s discretion to ask for collateral, according to the information available on the portal.
Comments from Online PSB Loans are awaited for this story.
Meanwhile, India’s overall MSME loan portfolio jumped by 17.8 per cent to Rs 64.1 lakh crore as of March 2024 from the year-ago period, according to a report by credit bureau CRIF High Mark on September 5, 2024. The total MSME loans originated or sanctioned in FY24 were 2.74 crore involving Rs 54.2 lakh crore, growing by 19.3 per cent in volume and 5.4 per cent in amount.
