Big boost to MSMEs: Get Rs 1 crore loan approval in 59 minutes, Rs 2 crore without collateral

The Union government on Wednesday launched a new initiative to transform the MSME credit space. The government has launched a website where an MSME can get principal approvals for loans up to Rs 1 crore within 59 minutes from SIDBI and five Public Sector Bans (PSB). Through the platform, an MSME borrower can get loan up to Rs 2 crore without any collateral, an official statement said today. 

The website - www.psbloansin59minutes.com - is a "strategic" initiative of SIBDI-led PSB consortium incubated under the aegis of Department of Financial Services (DFS), Ministry of Finance. The portal will reduce the turnaround time from 20-25 days to 59 minutes. Subsequent to the principle approval, the loan will be disbursed in 7-8 working days, a Ministry of Finance release said. 

www.psbloansin59minutes.com is first of its kind platform in the MSME segment, which integrates advanced fintech to ensure seamless loan approval and management. 

"The loans are undertaken without human intervention till sanction and or disbursement stage. A user-friendly Platform has been built where MSME borrower is not required to submit any physical document for in-principle approval," the release said. The website uses sophisticated algorithms to read and analyse data points from various sources such as IT returns, GST data, bank statements, MCA21 etc. in less than an hour while capturing the applicant's basic details using Smart analytics from available documents. 

Key features of www.psbloansin59minutes.com 
 
- The majority stake of SIDBI and big 5 PSBs - SBI, Bank of Baroda, PNB, Vijaya and Indian Bank.
- First such platform where MSME borrowers can connect with multiple banks without visiting the branch.
- Only platform in the market with a Banker Interface which covers the Branch Level integrations (with maker-checker-approver) in tune with current systems of PSBs.
-The platform enables bankers to create loan products in line with the Scoring models and assessment methods within their approved credit policy.
- Only platform with an integrated GST, ITR, Bank Statement Analyzer, Fraud Check and Bureau Check as well as host of other features.
- Only platform integrated with CGTMSE for checking the eligibility of Borrowers. 
-MSME borrower gets a loan up to Rs.2 crore without any collateral.