Nearly 2.5 lakh PSB loans sanctioned under SIDBI 59-min loan scheme

New Delhi, June 6 (KNN) Small Industries Development Bank of India (SIDBI) 59-minute loan approval scheme for micro, small and medium enterprise (MSMEs) has sanctioned 2,40,852 PSB loans in 59 Minutes involving Rs 81,690 crore as of June 1, 2022.

According to the MSME Ministry’s monthly data, out of total loans sanctioned 2,23,507 loans involving Rs 66,256 crore were disbursed so far. In the first two months (April-May) of the financial year 2022-23, around 1,101 loans were sanctioned while 818 were disbursed.

This scheme enables in-principle bank approval for collateral-free term loans or working capital loans to MSMEs from Rs 1 lakh to Rs 5 crore. However, the amount disbursed via the scheme had only a single-digit share of 4.63 per cent in the total bank credit of Rs 17.63 lakh crore to MSMEs in April 2022.

In terms of collateral, borrowers without collateral security can avail business loans through the portal under the Credit Guarantee Fund Trust for Micro and Small Enterprises scheme (CGTMSE), although as per lenders’ discretion to seek collateral from borrowers to disburse loans.

In FY22, only 9,868 loans involving Rs 5,197 crore were sanctioned, of which 8,155 loans amounting to Rs 3,729 crore were disbursed. The portal had partnered with over 21 public and private lenders including SBI, Punjab National Bank, Bank of Baroda, ICICI Bank, Kotak Mahindra Bank, and IndusInd Bank to disburse loans.  (KNN Bureau)