Circular No. ES/226/2018-19 September 26, 2018
To: Members of the Council
Sub: Finance Minister, Shri Arun Jaitley launches portal to grant MSME loans within an hour
The Finance Minister, Shri Arun Jaitley has launched a portal www.psbloansin59minutes.com to grant MSME loans up to Rs.1 crore within an hour from SIDBI (Small Industries Development Bank of India) and 5 other public sector banks (PSBs).
The Portal sets a new benchmark in loan processing and will reduce the turnaround time from 20-25 days to 59 minutes. The loan will be disbursed in 7-8 working days.
A New Initiative in MSME Banking Credit Space
- The portal integrates advanced fintech to ensure seamless loan approval and management.
- The loans undertaken will have no human intervention till sanction and or disbursement stage.
- A User Friendly Platform, where MSME borrower is not required to submit any physical document for in-principle approval.
- Sophisticated algorithms will be used 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 applicants basic details using Smart analytics from available documents.
- The system will simplify the decision making process for a loan officer as the final output provides a summary of credit, valuation and verification on a user-friendly dashboard in real time.
Features of the contactless platform include:
- The MSME financing will be carried out by SIDBI and big 5 PSBs which includes SBI, Bank of Baroda, PNB, Vijaya and Indian Bank.
- It is the first-of-its-kind portal for MSME borrowers that can get MSMEs connected with multiple banks without visiting the branch.
- It is an advanced digital platform for MSME Financing with services driven architecture and highest level of information security.
- It is the 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.
- It is also the only platform that enables bankers to create Loan Products in line with the Scoring models and assessment methods within their approved credit policy.
- It has an integrated GST, ITR, Bank Statement Analyser, Fraud Check and Bureau Check as well as host of other features which at present is not available with any other player in the market.
- It has been integrated with (Credit Guarantee Fund Trust for Micro and Small Enterprises) CGTMSE for checking the eligibility of Borrowers. MSME borrower gets loan up to Rs 2 crore without any collateral, which is major relief for MSME borrower.
Members may kindly make a note of the above and avail the benefits being extended to MSMEs.
For more details you may kindly refer to the Press Note issued in this regard.