Easy loans: banks sanction retail loans through portal

The platform was launched with a 59-minute penalty for loans ranging from Rs 10 lakh to Rs 1 crore. Later, the cap was raised to Rs 5 crore for SMEs.

Banks will soon sanction retail loans via “psbloansin59minutes.com,” State Bank of India (SBI) Chairman Rajnish Kumar said on Monday at an industry event.

Kumar said the platform, which is currently used to sanction loans to micro, small and medium-sized enterprises (MSMEs), uses documentary tools such as goods and services tax (GST) returns, tax returns. income tax (IT) and bank account statements. “The same platform that we will use later for personal loans. It can become a very powerful platform. One is that we need awareness and the other is that the turnaround time after sanction needs to be reduced. “

The platform was launched with a 59-minute penalty for loans ranging from Rs 10 lakh to Rs 1 crore. Later, the cap was raised to Rs 5 crore for SMEs.

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“They can apply, they get approval in principle. I gave my people written instructions down the line that there is no responsibility for the amount sanctioned, ”Kumar noted. “Loans of up to Rs 5 crore can be easily made on the basis of data analysis. After this existing process, it’s still about using data, but manual judgment and decision-making will come into play. ”

Industry members say the turnaround time after loan penalties through the portal has been long. In a meeting with Finance Minister Nirmala Sitharaman earlier this month, an industry association lodged a complaint to this effect.

“Compared to the sanctions, only 10% is paid by the banks as part of a 59-minute program,” said Ashok Saigal, co-chair of the CII MSME Committee. Under this program, MSMEs registered for GST are eligible for a loan of up to Rs 1 crore in just 59 minutes through the portal “psbloansin59minutes.com”. MSMEs also complained that despite a 70% guarantee from the Micro and Small Enterprise Credit Guarantee Fund, enterprises were unable to obtain loans from banks in many cases.

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