Credit and Loans for MSMEs: PSB Loans in 59 Minutes, SIDBI’s 59 Minutes Loan Approval Scheme for Micro, Small and Medium Enterprises (MSMEs), recorded a meager 3.2% year-on-year increase in approved loan applications as of 1 November 2022. did. The bank has authorized 2,43,140 loans worth 82,962 kroner as of 1 November 2022 against 2,35,511 loans including 78,738 kroner authorized as of 1 November 2021. , official data from the MSME Ministry dashboard showed.
In terms of loans disbursed, from 2,19,526 loans worth Rs. , grew only 2.6% year-on-year. , 2022. In monthly sanctions and payments, MSMEs have been authorized 2,42,812 loans comprising Rs.82,822 and disbursed 2,25,015 loans comprising Rs.66,922 as of 30 September 2022.
The scheme was launched in November 2018 to allow bank approval in principle for unsecured term loans or working capital loans to MSMEs from Rs.1-50 million in 59 minutes. Registration is free for borrowers, but they have to pay Rs 1,000 to get approved once their loan application matches the lender’s product, according to the scheme’s FAQ. How long it takes to pay off the loan depends on the information and documents provided by the borrower.
Currently, more than 21 affiliated banks including SBI, Baroda Bank, ICICI Bank, Kotak Mahindra Bank, Punjab National Bank, etc. can avail of this scheme. A borrower can avail a loan without collateral under his CGTMSE scheme, but that is at the discretion of the lender and may ask for collateral according to the guidelines. Borrowers must share their GST and income tax details, bank statements, and company ownership details in order to apply for a loan.