MSME/PSB Loans Within 59 Minutes: is it really possible?


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One of the biggest policy initiatives of the government that aims to enhance the credit off-take to in the MSME sector and individual entrepreneurs is the 59 minutes Public Sector Banks(PSB) loan scheme.

This loan scheme comprises of giving in-principle loan approval to a maximum of Rs 5 crores from reputed banks. Multiple public sector banks have formed a consortium and have developed a unified online lending mechanism through a website called

Business Loan Apply Online

List of Banks participating in 59-minute PSB Loan Scheme: SIDBI


Punjab and Sind Bank

Yes Bank

Federal Bank

Kotak Bank

Union Bank

Central Bank of India

Indian Bank

UCO Bank

Canara Bank

Indian Overseas Bank


Bank of Maharashtra

IndusInd Bank


Bank of India


Punjab National Bank

Bank of Baroda


Saraswat Bank

Reasons for this Scheme Introduction:

1. One of the major reasons for this initiative is to aggregate the different banking services under one umbrella so as to provide the best services to the customers.

2. The customers are positively affected by this scheme as they are now able to understand the pros and cons of the banking policies of individual financial institutions.

3. The government has directed the nationalized banks to also include housing infrastructure loans and automobile loans under the scheme. A lot of technological infrastructural development has been invested to propel the wheels of the credit market in the Indian economy.

4. This has been done with the aim of increasing the credit levels among small businesses and entrepreneurs. According to international credit institutions such as Credit Suisse, this initiative has been acclaimed as one of the greatest policy initiatives which provide credit in a timely fashion to small businesses, MSME sector, Mudra loan seekers and private businessmen.

How this initiative is different from instant online personal loans?

Recently there was criticism among public sector banks that their lending policies are too strict and are excluding the needy sectors of society by their exclusionary rules and heavy paperwork. This in turn is making the borrowers to go for private lenders which are not a desirable outcome because of non-transparent lending practices by the private lenders. PSB loans in 59 minutes have emerged as the single largest credit lending online platform according to international organizations like World Bank and International Monetary Fund.

Advantages of PSB loans in 59 minutes:

This scheme is regarded as an online lending marketplace and whose star attraction is providing in-principle approval for entrepreneurs who are seeking to provide momentum to the economic wheels and also providing employment to the masses. The various loan variants are working capital loans and term loans.

Amazing features of this loan scheme is that credit disbursement time has been reduced to 59 minutes from the previous time period of months.

This helps to give clarity to entrepreneurs and form an opinion regarding the quantum of credit they are eligible for so that they can plan their business models accordingly. After receiving the in-principle approval letter, most banks disburse the sanctioned amount within 8 working days.

Benefits to the MSME sector with the online platform of 59 minute PSB loans

  • In-principle approval is given to the entrepreneurs and retail loan seekers, which serves as a good recommendation letter for future applications of loans.
  • The paperwork is highly simplified and this helps small business owners who are not proficient with the intricacies of loan sanctioning in big public sector banks.
  • Due to the present pandemic situation, the credit off-take has been decreased. With the introduction of the 59-minute business loans, the state-run banks are showing good initiative in extending credit to the needy sectors of the economy and stabilizing employment opportunities.
  • The government has introduced the scheme and is actively promoting credit financing of the MSME sector. Business owners can make their commercial dreams come true with this 59 minute PSB loan and can expand operations into new geographic markets.
  • The 59 minutes PSB loan is in tune with the international best standards of banking services and increases the competitive nature of Indian products in both manufacturing and services sectors across the world.
  • Due to the popularity of the 59 minute PSB loan scheme, the credit growth in crucial sectors of retail businesses has increased and this has given small businesses an equal footing with corporate behemoths such as Amazon and Flipkart.

The application process for ‘59 Minutes Loan’

The application starts with a ‘new user’ registration on the official website,

  • Step 1: Complete the sign-up process by entering your name, email and mobile number. Click on ‘get OTP’ to verify your credentials.
  • Step 2: Enter the OTP received on your phone and agree to the terms and conditions before clicking on ‘Proceed’.
  • Step 3: The next screen will ask a few basic questions which you need to answer in ‘yes’ or ‘no’ by selecting the corresponding radio selection box. Click proceed again to continue to the next step.
  • Step 4: Now, you will be asked to input your GST details, such as GST number and password, followed by income tax information. Here, you can either upload the statements in XML format or login with your ITR details such as PAN and date of incorporation.
  • Step 5: This step involves the upload of your past 6-month bank statements in PDF format. You can also login with your net banking credentials and allow the lenders to access the financial statements.
  • Step 6: Here, you provide the details of directors, proprietor and company address.
  • Step 7: Now select the purpose of your loan and provide the details of any previous/existing loans taken by your business.
  • Step 8: Select the bank through which you want your loan to be processed. The interest amount may vary from bank to bank.
  • Step 9: Pay the 1000 convenience fee, plus taxes for approval.
  • Step 10: Download your approval letter, pending further due diligence by the loan-providing bank.

Introduction of technology in PSB Credit:

This loan scheme has an auto-scalable platform and integrates robust technology and is connected with different data points of the credit seekers such as credit history, GST compliance and income tax payment history. The use of technology in this loan scheme has provided seamless connectivity across various financial and regulatory institutions.

This loan scheme helps in providing a transparent credit mechanism in India and reduces the incidence of Non-Performing Assets. It is important for financial institutions to increase the amount of credit provided to small businesses so that the trickledown effect acts positively on the employees.

How this Scheme reduces non-performing assets and in turn complements the financial health of small businesses and MSME industries?

  • The Indian credit industry is plagued by non-performing loans. Lack of transparency in the previous lending policies of the banks has led to a depressive financial scenario which acts as negative drivers to the growth of industry and services in India.
  • This wonderful initiative introduces transparency and accountability in both the lenders and the borrowers and incentivizes small businesses for the correct repayment of loans.
  • One of the attractive features of this scheme is the introduction of technology-enabled services which reduces the time taken to give approval for the final sanction.

How does the 59 minutes PSB loan works?

This online platform has set a revolutionary benchmark in reducing loan processing times and gives a consistent turnaround time which enables entrepreneurs to manage their finances.

1. Initiative behind the 59-minute loan scheme

This revolutionary initiative simplifies the different processes of raising funds. Offering easy access of credit to individuals and small businesses is the cornerstone of this initiative. Organizations that need credit at the right time can benefit from this project.

The global banking industry is undergoing rapid automation and digitization. We aim to act as a change agent and introduce egalitarian and transparent methodologies for sanctioning term loans, mudra loans and working capital loans.

Borrowers who aspire for retail, automobile and home loans can get a clear picture of their ability to get funds by getting in-principle approval in a matter of 15 minutes. In the previous situation, the loan options of the borrowers were limited to the bank in which they maintaining a savings bank account. We offer the borrower complete control over the type of loan they want to avail.

Brief highlights of this initiative

  • The loans are provided with collateral or without collateral depending on the quantum and nature of the loan that is applied.
  • The loan amount ranges from Rs 1 Lakh to a maximum of Rs 5 crores. The interest rate begins from 8.5% onwards.
  • Medium-size enterprises and other small businesses that depend on credit guarantee schemes such as CGTMSE can check their eligibility for business loans across different sectors like manufacturing and services.
  •  Small businesses who aspire for mudra loans are given top priority in this initiative with the loan amount ranging as small as Rs 10,000 and goes to a maximum of rupees 10 lacs.
  • The housing loan amount ranges from a maximum of rupees 10 crores and auto loans enjoy an upper limit of Rupees 1 crore.

What are the key features of PSB loans in 59 minutes?

1. High-end Technology

  • The technological platform of this initiative is entirely compatible with the current banking processes. Our loan services help borrowers to apply for various types of loans.
  • This loan scheme acts as an overarching umbrella that consists of home loans, personal loans and business loans. Borrowers can select from a range of banks depending upon their credit perception.
  • We adopt highly encrypted technology platforms to safeguard the financial details of the borrowers. The banking interface in this initiative enables users to browse through personalized loan products and educate the borrowers on the credit policies of individual banks.

2. Less turnaround time

No longer are the borrowers required to take appointments from loan officers and stand in long queues, waiting in the financial institutions. The borrowers can get a complete picture of the loan eligibility and if there have the required documents they can get a loan in 59 minutes.

3. Minimum documentation

This loan scheme avoids the cumbersome red tape of banking institutions by streamlining the whole paperwork process. Many entrepreneurs are not fully aware of the comprehensive paperwork required for loan approval and take the help of middlemen and unsavory characters who demand a commission for loan approval. Using this 59-minute loan platform, that enterprises can submit their documents and get in-principle approval of their loan.

4. Security of loan details

Applicants can rest easy that the whole loan application process is safe and secure. The information is stored only for the process of loan sanction and complete privacy of the financial information is guaranteed.

Loan eligibility criteria for PSB 59 minutes loans:

  • Business owners and entrepreneurs who want to successfully avail the PSB 59 minutes loan must be in accordance with the following criteria:
  • Self-employed people and those who already running an existing business must be GST compliant
  • Small businesses must successfully complete GST registration and all their IT assessments should be in order.
  • It is mandatory to submit the cash flow statements for the last 6 months for a financial institution

The eligibility of the loan applications are evaluated on the basis of the following factors:

  • Revenue generation of the borrower
  • The ability of the individual or business to repay the loan
  • Presence of any existing credit facilities
  • Discretionary terms and conditions as set by the lender

Documentation details required for a 59 minute PSB loan

Successful application of a 59 minute loan in PSB is contingent upon the applicant’s ability to submit the following documents:

1. Details of goods and service tax (GST)

Financial institutions pay close attention to the GST details provided by the prospective applicants. GST registration depends upon the nature of the business and its scope of operation across different states.

2. Details of income tax returns

This is one of the important documentation requirements for getting in-principle approval for the 59 minute PSB loan. The latest income tax returns should be submitted in XML format as applicable.

3. Bank statement for the last 6 months in PDF format

It is contingent upon the loan applicant to make soft copies of the bank statements for the last 6 months. Bank statements of a business organization have to be given for at least three bank accounts. This is an important attribute which goes a long way in getting successful sanction along with favorable loan conditions.

Comparing the ‘59 Minutes Loan’ scheme with NBFC loans

The concept of fast business loans is not a new one and the latest government scheme is just an extension of same-day loan approvals being given by NBFCs like Lendingkart, albeit with some sugar-coating. Some of the features being touted by the new loan scheme, such as an online portal for loan application and digital submission and verification of documents, are already in use by NBFCs like Lendingkart. Moreover, the simplicity and steps involved in the loan application process are also fewer for NBFC business loans.

Here are some of the key differences between the ‘59 Minutes Loan’ scheme and NBFC business loans.

  • Application Process: Both use an online application process, needing users to register with name, email and phone numbers.
  • Documentation: The government’s business loan scheme requires the submission of a 6-month bank statement, 3-year income tax filings, GST details (including your password) and incorporation certificates along with personal, educational and financial details of the owner/partners/directors. On the other hand, Lendingkart offers loans based on 6-month bank statements and 2-year ITR returns if your revenue is less than 60 lakhs. It is not mandatory to have net banking and Lendingkart does not ask for ITR and GST in the case of Green Zone.
  • Loan Amount: The ‘59 Minutes Loan’ scheme offers loans from 10 lakh up to 1 crore whereas Lendingkart has a wider scope in terms of funding with business loans ranging between 50,000 to 1 crore.
  • Loan Disbursal: If all details check out, the government’s loan scheme offers business loans within 7-8 days, which is not a lot quicker than the existing loan products offered by banks. On the other hand, Lendingkart promises the disbursal of loan funds within 3-days’ time once your application is verified.
  • Additional Features: Both, the government’s MSME loan scheme and NBFC loans are unsecured business loans. However, Lendingkart offers several additional advantages such as top-up loan, renewal upon full repayment, zero evaluation charges and no pre-closure charges. Furthermore, Lendingkart also has a dedicated mobile app, customer support and social media presence to assist customers in real-time.
ParticularsNBFC Loans59 Minutes LoanDifference
Time for ApprovalSame Day ApprovalsWithin 59 MinutesSame concept
Time for DisbursalWithin 3 Days8-10 DaysNBFC loans are faster by almost a week
Loan Amount50,000 to 1 Crore10 Lakhs to 1 CroreNBFC loans have a wider window that increases the possibility of getting a business loan
DocumentationMinimal DocumentationPersonal, Educational and Financial documentation requiredNBFC business loans are easier to get
ProcessFinTech processBureaucratic processNBFCs use IoT technologies to minimise delays in loan disbursals
FundingSelf-fundedAvailable from selected public sector banksNBFCs have ready cash available for disbursals whereas PSBs are already burdened by an NPA crisis
Flexible EMIsYesAs per bank rulesNBFC loans come with bi-weekly and monthly EMI options for faster and easier repayment
Prepayment PolicyNo ChargesAs per bank rulesNBFC loans offer hassle-free early repayment in full
Auto-renewalAvailableNot availableNBFC business loans offer better revolving credit facility than bank loans

Advantages of NBFC business loans

In its current form, the new scheme by the government is a tough sell once you go beyond the face value. Here are some of the things which an NBFC business loan still does better than the ‘59 Minutes Loan’ scheme.

  • NBFC loans are self-funded whereas the government’s scheme relies on SIDBI and PSU banks – State Bank of India, Bank of Baroda, Punjab National Bank, Vijaya Bank and Indian Bank. Hence, the NBFC business loans retain the advantage of being fast and free from bureaucratic delays.
  • The starting value of ₹ 50,000 gives NBFC business loans another advantage as it increases the probability of getting a small business loan for an applicant who may not be able to service a loan worth  10 lakh, which is the minimum under the government’s proposal.
  • In essence, the 59 minutes loan approval time is similar to same-day loan approvals, as the condition of ‘pending verification’ applies in both cases. However, where NBFC business loans from Lendingkart are disbursed within 3 days of verification with attractive interest rates, the same process takes 7-8 working days under the government scheme.
  • NBFC loans offer the facility of revolving capital through products like business loan renewal and zero pre-payment charges, making them more suited for working capital finance. On the other hand, fresh loans under the government scheme will have to follow the same application, approval, processing and disbursal cycle all over again.
  • NBFCs like Lendingkart also offer monthly and bi-weekly EMIs to help businesses with extended invoicing cycles. This flexible EMI feature may not be a part of the government’s MSME finance scheme from the onset.
  • The questionable success of previous government financing schemes also puts NBFC loans in perspective, where companies like Lendingkart Finance are now offering business loans across India.

Concluding thoughts

While we should laud the government’s efforts to make India more business-friendly, only time and numbers will tell the real story here. The political detractors of the government were quick to point out that the new MSME finance scheme has all the trappings of a same-day approval loan and that it is merely a pre-poll sop. Even several bankers have questioned the feasibility of the ‘approval within 59 minutes’ approach as the public sector banks which are expected to shoulder the burden are still reeling from a bad loan crisis and the shadow effects of demonetization. The most concerning part of the scheme remains the actual turnaround time for the business loan. The disbursal time of 7-8 working days can easily stretch up to 8-12 days when you count weekend holidays and public holidays. So, in reality, getting a business loan from the bank will still remain a cumbersome task.

On the other hand, NBFCs are offering a wider range of loan options and complementary products and services like auto-renewals and zero penalty pre-closures, which are hard to ignore. Add to that the possibility of getting a business loan within 72 hours and the government’s proposal loses some of its sheens. So, when compared head-on, NBFCs like Lendingkart are still offering better value to their customers until the time the government scheme matures.

So, in the end, answering the question ‘is it really possible to get a business loan within 59 minutes?’. Unfortunately, the answer is no. You can get a business loan approval within 59 minutes, but all it means is that the banks refinancing the government’s scheme will follow their usual application and verification process after that. The actual loan will only be given after the process is complete, which can take up to 12 days. You can, however, get a business loan within 3-days by signing up on Lendingkart’s website or mobile app.

PSBLoansin59minutes FAQs:

1. What is the quantum of the loan that can be sanction in 59 minutes PSB loans?

Applicants who submit the requisite documentation can avail loan amounts between the ranges of Rs 1 Lakh and Rs 5 Crores. The scheme equally applies to all private and public sector lenders and also NBFCs.

2. What is the time window under which borrowers can complete the loan-application process?

As the name suggests PSB loans under the scheme get in principle approval within 59 minutes. The approval process is streamlined and there is no delay in sanctioning funds. After fulfilling all the necessary formalities which include documentation, verification and on-site inspection, the loan amount is disbursed as a lump sum amount or in phases and this whole process takes up to a maximum of 30 days.

3. How can I get a loan sanctioned on the website platform of the 59 minute PSB loan?

The first important step in this process is to register for the 59 minute loan scheme. Upon submitting the required documents which include GST registration for small businesses and in the case of individual entrepreneurs, submission of IT returns and bank statements should be done which will take you to the next step of the loan application process.

4. Do borrowers need to pay any charges for availing 59 minute PSB long?

Since this is a consortium of banks that are providing services for getting your application processed, there are charges that are to be paid by the borrower for considering your loan application. This charge has to be paid at the time of the PSB loan approval.

5. What is a collateral free loan under this scheme?

It is a form of an unsecured loan in which there is no obligation on the individual power to submit any collateral. The requirement of collateral depends upon the quantum of loans and the end-use of funds. In CGTMSE and Mudra loans, the government has mandated that the bank should not ask for any collateral securities.

6. How can the borrowers check the approval status of 59 minutes PSB loan?

The borrowers can log into the bank portal and submit the essential documents such as IT returns, GST identification number, ID proofs and address proof. After a few days, the status of the loan will be visible on the website.

7. What is the point of contact for 59 minute PSB loans?

There are clear communication procedures for borrowers to clear any grievances and doubts. Help lines are provided on the number 0794 1055 999 whose lines are open 24/7. Alternatively you can communicate with the loan authorities by writing to their email.

8. What are the steps to be followed to register under 59 minute PSB loan?

Visit the PSB 59 minute loan official website. Click the register button. Fill the details such as name, mobile number, email address and then on submitting you will be getting an OTP. The OTP is received on the mobile number and this needs to be entered into the website. The terms and conditions box needs to be checked so as to proceed to the next step. Make sure that all details in the columns are filled and click on proceed.

9. What is the process for MSME business owners to apply for 59 minute PSB business loans?

The profile of the borrower can be logged in after entering the secure username and password provided by the bank. Click on proceed. After creating the profile, you need to enter the details of PAN card and GST number and click on proceed. Upload the bank statement from at least three accounts of the borrower for the last 6 months in PDF format. After filling the above details upload your income tax returns for the last three years and then click on proceed. Upon the successful completion of all the steps and provided that everything is an order, you will be receiving an in principle approval from your choice of bank.

10. Does In-principle loan approval guarantee that the loan will be sanctioned?

The data provided by the prospective borrower’s forms the basis of the in principle sanction of the 59 minute PSB loan. The next step will be conducting due diligence by the lender regarding the financial viability of the loan depending on various parameters. The final decisions of sanctioning the loan is entirely at the lender’s discretion.

Business Loan Apply Online

59 Minutes Loan News

2.45 Lakh Loans Were Sanctioned By The Government Under The 59-min Loan Scheme

As of March 1, 2023, banks had granted 2,45,065 loans total of Rs 83,938 crore, only 2.2% more than the 2,39,751 loans totalling Rs 81,141 crore approved under the 59-minute loan scheme run by the government and SIDBI. Up till the beginning of March of this year, the scheme disbursed 4,089 loans, showing a 1.83% increase in loans disbursed to 2,26,778 loans totalling Rs 67,847 crore. As of March 1, 2023, 5,314 loans had been approved under the loan approval scheme for MSMEs – PSB Loans in 59 Minutes, and as of April 1 of the previous year, 2,22,689 loans totalling Rs 65,834 crores had been disbursed.

News Updated Date: 20th March 2023

MSME Rankings launched by CIBIL, SIDBI, and Online PSB Loans

TransUnion Cibil, a credit information provider, launched a ranking system for MSME borrowers intending to increase credit flow to small businesses and assist lenders in avoiding loan losses on such wagers. The “FIT Rank,” introduced by TransUnion Cibil in collaboration with Online PSB Loans, will rate the more than 6 crore MSMEs by using data from their current accounts, income tax returns, and Goods and Services Tax returns to calculate a score between 1 and 10 to rate a borrower after obtaining permission to collect the necessary data. Because of the ranking, an MSME will benefit from visiting the market and requesting the best prices.

News Updated Date: 4th January 2022

SIDBI’s 59-Min MSME Loan Scheme: Growth In Loans Sanctioned And Disbursed Drops, Shows Govt Data

According to official data, SIDBI’s 59-minute loan approval program PSB Loans in 59 Minutes for MSMEs approved 2,42,812 loans totaling Rs 82,822 crores as of September 30, 2022, compared to 2,34,905 loans totaling Rs 78,409 crores sanctioned as of September 30, 2021. This represents a 3.36 percent increase from the previous year. According to data from the MSME Dashboard by the Ministry of MSME, 2,25,015 loans totaling Rs 66,922 crores were disbursed as of September 30th, up 2.75 percent from 2,18,977 applications totaling Rs 64,067 crores spent as of September 2021. But according to its Managing Director and CEO Jinand Shah, Online PSB Loans (OPL), the fintech platform that runs the program, is likely to reach the Rs 1 lakh crore mark in disbursements this fiscal. 

According to Shah, MSMEs will experience a 50% growth during the credit season, which starts in September and lasts until March. According to its guidelines on the portal, the scheme allows MSMEs to receive in-principle approval for a business loan with a minimum of Rs 10 lakh and a maximum of Rs 5 crore at interest rates starting at 8.5% per annum. As of August, there was Rs 18.15 lakh crore in bank credit deployed to the MSME sector, up 24% from Rs 14.64 lakh crore in August 2021. According to data from the Reserve Bank of India, credit to MSMEs was deployed in July at a total of Rs. 18.08 lakh crore, compared to Rs. 17.63 lakh crore, Rs. 17.81 lakh crore, and Rs. 17.93 lakh crore in April, May, and June of the current fiscal year.

News Updated Date: 31st October 2022

SIDBI’s 59 min scheme: The hits and misses

SIDBI’s credit and finance scheme for MSMEs was launched in November 2018. This scheme involves sanctioning collateral-free term loans or working capital loans ranging from 1 lakh to 5 crores pending bank approval. This 59-minute loan approval scheme doesn’t require the borrower to pay for registration on the portal but a 1000 INR payment is needed for those whose loan application matches with the lenders’ products and who wish to receive an in-principle approval according to the FAQs of the scheme.

  • As of June 1st, 2022, 240,852 loans involving 81,690 crores INR were sanctioned under this scheme as per the MSME’s ministry data on PSB loans
  • Of the total loans sanctioned 223,507 loans involving 66,265 crores INR were given out so far.
  • In the financial year, 2022-23, during the first 2 months i.e. April and May approximately 1101 loans were sanctioned while 818 were disbursed.
  • As of April 1st, 2022, the total number of loans sanctioned was 239,751 and the number of loans disbursed was 222,689 according to the data.
  • As per the latest data released by RBI on May 31st, 2022, the total amount disbursed by this scheme accounts for only 4.63% of the total bank credit of 17.63 lakh crore given to the MSMEs in April 2022.

The amount of time it takes for the disbursement after the approval depends on the accuracy of the information and documentation provided by the borrower to the banks on the portal. The more accurate the data the sooner the disbursal. After the in-principle approval of the loan, it is expected to take 7-8 working days for the funds to be sanctioned.

Borrowers are eligible to borrow without collateral through the portal, but it is the lenders’ discretion to seek collateral to disburse the funds. 

  • Only 9688 loans amounting to 5197 crores INR were sanctioned of which 8155 loans involving 3729 crores INR were disbursed in FY 22.

The portal has partnerships with over 21 public and private lenders including organizations like SBI, PNB, Bank Of Baroda, ICICI Bank, Kotak Mahindra Bank, and IndusIndBank to disburse the loans.

News Updated Date: 14th June 2022

MSMEs are Availing of SIDBI’s 59-min Loan Scheme

The 59-min loan portal has sanctioned almost 2.4 lakh loans to the MSMEs since its launch in 2018 in the month of November until 2nd March 2022, including 80,379 crore INR as the loan amount. This portal is known for providing customers with super-fast working capital and term loans with the bank’s approval. Credit disbursement through this portal was 43% of the total loan amount issued by banks to the MSMEs in January 2022. The CEO of online PSB loans, Jinand Shah has stated that they aim to reach more MSMEs, and by the end of this year, they target 10-15 lakh loans. He also mentioned that they could definitely reach this desired target if the MSMEs are aware of this scheme. It takes around 59 minutes to approve this loan after making an application.

News Updated Date: 24-03-2022

SIDBI’s 59-min loan scheme- a boon for fintech start-ups & micro-units

Online PSB Loans have announced that new fintech start-ups will get funds from SIDBI’s 59-minute in-principle loan approval scheme for MSMEs. 

Jinand Shah, Co-founder, and CEO of Online PSB Loans, said that the strategic partnership would make lending easier. He added that earlier, getting funds for a start-up would take a lot of time. But with the new partnership, the start-up would just have to convince them to access funds. Banks will also leverage the portal to connect with these start-ups. 

Co-owned by SIDBI and other public sector banks, Online PSB Loans is willing to invest in young start-ups. Rs 50 crore investment from HDFC Holdings and Trans Union will also focus on creating awareness via marketing. 

With more than 21 partner banks, the portal has sanctioned 2,35,511 loans involving Rs 78,738 crore as of November 1, 2021, official data from the MSME Ministry. 

Renu Sud Karnad, Managing Director, HDFC Ltd on investment in Online PSB Loans, said that digitization would improve the customer experience while saving cost and time. 

This scheme, launched by Prime Minister Narendra Modi, will also explore micro-lending. Street vendors can get loans between Rs 1,000 and Rs 10,000. This partnership will improve credit disbursements for small businesses.

Updated Date: 26-01-2022

The count of PM Modi’s 59 min MSME loans fall in the third year

The 59 min loan approval scheme by SIDBI for MSMEs completed three years of operation in November this year. The scheme has sanctioned 2.36 lakh loans involving Rs 79,149 crore in these three years. Of these, 2.20 lakh loans were sanctioned in the first two years, and only 20,000 loans were sanctioned this year, showing a considerable drop in count this year. 

One of the reasons for the drop this year could be covid-led disruption into MSMEs production processes. Another reason could be that MSMEs are unaware of the scheme and the fact that they can access credit as banks have to lend money to MSMEs, which fall into the priority sector.

The scheme was originally launched to offer credit up to Rs 1 crore, but multiple banks increased the credit limit to Rs 5 crore in July 2019.

Updated Date: 21-12-2021

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