SIDBI’s 59-Minute Loan Scheme: 2.24 lakh loans involving Rs 66,635 crore disbursed so far, according to government data
Credit and financing for MSMEs: SIDBI’s Loans in 59 Minutes Approval Scheme for Micro, Small and Medium Enterprises (MSMEs), PSB Loans in 59 Minutes disbursed 2,24,323 loans worth Rs 66,635 crore out of 2,41,781 loans amounting of Rs 82,323 crore sanctioned as of September 1, 2022, displays the latest government data on the MSME Dashboard. In comparison, loans sanctioned as of August 31, 2021, under the 59-Minute MSME Loan Scheme, stood at 2,33,845 involving Rs 77,811 crore while loans disbursed were 2,17,828 amounting to Rs 63,553 crore. This indicated only a marginal 2.9% year-on-year increase in disbursed loans.
Launched in November 2018, the scheme provides bank approval in principle for unsecured term loans or working capital loans to MSMEs from Rs 1 lakh to Rs 5 crore in 59 minutes. Although the borrower is not required to pay for registration, a payment of Rs 1,000 is required by those whose loan applications match the lenders’ products and wish to receive approval in principle, according to the program’s FAQ. The loan disbursement time depends on the information and documentation provided by the borrower.
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Meanwhile, fintech platform Online PSB Loans (OPL), which runs the scheme, is expected to hit the Rs 1 million mark in disbursement by the end of FY23, its managing director and CEO said. Jinand Shah at FE Aspire (formerly Financial Express Online) in July this year. A 50% growth, Shah said, will be supported by the credit season that begins in September and runs through March for MSMEs. The portal has partnered with more than 21 lenders such as SBI, Punjab National Bank, Bank of Baroda, ICICI Bank, Kotak Mahindra Bank and IndusInd Bank to facilitate credit to borrowers.
Total bank credit to the MSME sector in July stood at Rs 18.08 lakh crore, up 24% from Rs 14.56 lakh crore in July last year, according to the latest rollout data. sector of the Reserve Bank of India.
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