PSBloansin59minutes.com, has emerged as the country’s largest online lending platform, with loan sanctions exceeding over Rs 35,000 crore.
The portal was launched in November to provide credit of up to Rs 1 crore to micro, small and medium enterprises (MSMEs) in just 59 minutes or less than an hour, in a bid to make banking transparent and hassle-free. The platform, designed under the guidance of Financial Services Secretary, Rajiv Kumar, has reduced the turnaround time from 20-25 days to 59 minutes. Upon approval, the loan is disbursed in 7-8 working days. The secretary said the automated loan processing system has not only brought in ease, but is also helping in fostering transparency. It has put an end to discretion at the bankers’ end, as in-principle approval of loans does not require human intervention.
Due to the linking of data points, no one can game the system now. There is no scope for information asymmetry. It will also end the era of giving false information, such as a different income statement to banks and tax authorities. Since the launch, 1.62 lakh MSME units have been given in-principle approvals, while 1.12 lakh have got a final nod. Of this, 35,517 units have got new loans worth Rs 10,047 crore, while 77,369 units have received renewal loans of Rs 25,609 crore, according to the latest figures. MSME units availing of the loans have to submit details such as income-tax returns, GST data and bank statements to avail of credit facility through this portal.