Credit and Finance for Micro, Small and Medium Enterprises: SIDBI’s 59-minute loan approval program for micro, small and medium enterprises (MSMEs), PSB loans in just 59 minutes recorded a 3.2 percent jump in loan applications approved as of November 1, 2022, compared to the same period last year. Banks sanctioned 2,43,140 loans amounting to Rs 82,962 crore as of November 1, 2022, against 2,35,511 loans involving Rs 78,738 crore approved as of November 1, 2021, official data showed. From the dashboard of the Ministry of Micro, Small and Medium Enterprises.
In terms of paid loans, the annual growth was only 2.6 per cent from 2,19,526 loans worth Rs 64,326 crore disbursed as of November 1, 2021 to 2,25,236 loans involving Rs 67,007 crore as of November 1, 2022. In penalties and monthly payments, 2,42,812 loans involving Rs 82,822 crore were sanctioned to MSMEs as of September 30, 2022, while 2,25,015 loans involving Rs 66,922 crore were disbursed.
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The scheme, which enables bank approval in principle for unsecured term loans or working capital loans to MSMEs from Rs 1 thousand to Rs 5 crore in 59 minutes, was launched in November 2018. While registration is free for borrowers, payment is required 1,000 rupees to get approved once the loan application matches the lenders’ products, according to the scheme’s FAQ. The time taken to disburse the loan depends on the information and documents provided by the borrower.
Currently, more than 21 partner banks are available to avail the program, including SBI, Bank of Baroda, ICICI Bank, Kotak Mahindra Bank, Punjab National Bank, etc. While the borrower can avail the loan even when there is no collateral under the CGTMSE scheme, it is at the discretion of the lenders and the collateral can be requested as per the guidelines. Borrowers are required to share GST and income tax details, bank statements and company ownership details to apply for a loan.
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