The time taken for loan disbursement depends on the information and documentation provided by the borrower on the portal and with the chosen bank. Generally, post digital approval, the loan is expected to be sanctioned/disbursed in seven-eight working days.
MSME Loans: Credit sanctioned under the government and SIDBI’s 59-minute loan approval scheme for MSMEs – PSB Loans in 59 Minutes – grew to 2,46,997 involving Rs 85,054 crore as of August 1 since the launch of the 59-minute loan portal in November 2018. Out of the total loans sanctioned, 2,28,118 loans amounting to Rs 68,636 crore were disbursed, according to the MSME Ministry data from its dashboard. In comparison, 2,24,002 loans worth Rs 66,471 crore were disbursed till July 2022.
According to the loan portal, an MSME can avail business loan from Rs lakh to Rs 5 crore. Post digital approval, the preferred lender selected by the borrower before submitting the application conducts thorough due diligence and decides on sanctioning/disbursing the loan amount. While for registration purpose, the borrower doesn’t need to make any payment, a Rs 1,000 fee has to be paid by the borrower for the digital approval if the proposal matches with the loan products of lenders.
The time taken for loan disbursement depends on the information and documentation provided by the borrower on the portal and with the chosen bank. Generally, post digital approval, the loan is expected to be sanctioned/disbursed in seven-eight working days.
Moreover, while the borrower can apply for the loan without the need for any collateral security, it is as per the bank’s discretion to ask for collateral, according to the information available on the portal.
MSMEs can apply for term loans and working capital loans along with Mudra loans to buy new plant and machinery, upgrading technology, expanding products, purchasing raw materials, and developing infrastructure, among others.
Meanwhile, Rs 21.14 lakh crore bank credit under priority sector lending — 14.7 per cent of India’s total non-food bank credit worth Rs 143.6 lakh crore — was deployed in the MSME sector in June 2023 in comparison to Rs 20.20 lakh crore — 14.5 per cent of India’s total non-food bank credit worth Rs 138.5 lakh crore — deployed in the MSME sector in May 2023, according to the data from the Reserve Bank of India’s on monthly sectoral deployment.
