New Delhi, Nov 3 (KNN) In a bid to boost credit availability to Micro, Small and Medium Enterprises (MSMEs), Prime Minister Narendra announced a 59 minute loan facility of up to Rs 1 crore for MSMEs during the launch of MSME Support and Outreach Program yesterday in the presence of Finance Minister Arun Jaitley and MSME Minister Giriraj Singh.

Launching the MSME support program which will run for 100 days covering 100 districts, Prime Minister announced 12 major decisions taken by his government for the growth and development of MSMEs in the country. The 59 minute loan facility is one of the key decisions among those 12 decisions.

He said 59 minutes loan facility will provide loans to MSMEs in just 59 minutes not more than that.

He said “In the time taken for you to reach your office, you can now get a loan. We had run a pilot and I had set a target of 72,000 MSMEs under this. As of today 72,680 have been on boarded.”

Earlier in the month of September end, Finance Minister Arun Jaitley launched a web portal through which one can avail loans up to Rs 1 crore in just 59 minutes.

The web portal is www.psbloansin59minutes.com. The portal sets a new benchmark in loan processing and reduces the turnaround time from 20-25 days to 59 minutes.

On this website, in-principle approval of loans will not require any physical documents.

Through this portal, MSMEs will be able to connect with banks without visiting the branch.

A first in MSME banking credit space, www.psbloansin59minutes.com is one of its kind platforms in MSME segment which integrates advanced fintech to ensure seamless loan approval and management.

MSMEs that are registered on the GST platform will get two per cent interest subsidy on fresh loans, while a website psbloansin59minutes.com has been started to provide sanction on loan up to Rs 1 crore within 59 minutes.

The loans are undertaken without human intervention till sanction and or disbursement stage.

The portal assesses the creditworthiness of the applicant through data analysis of GST returns, tax returns and bank account statements.

Welcoming the move of 59 minutes loan services to MSMEs, Industrialist from different associations like IIA, KASSIA hailed the Prime Minister move by saying that this will solve the liquidity crunch issue that MSMEs have been facing from long.

However, Tamil Nadu Small and Tiny Industries Association (TANSTIA), President, C. Babu doubted the banks potentiality of sanctioning loans.

He said “I don’t know how banks will operate. It is very important to know how many banks are willing to give loans under this scheme.”

While Federation of Punjab Small Industries Association, President Badish Jindal said that banks are bankrupt and will not pay single penny to anyone. 

The loan sanctioning to MSMEs will depend on the banks financial strength not what PM has said, he pointed.