SIDBI clears air on Capita World's role in loans in 59 minutes; gives it a public sector character
Updated: Nov 10, 2018 07:30:31am
SIDBI clears air on Capita World's role in loans in 59 minutes; gives it a public sector character
New Delhi, Nov 10 (KNN) Among the 12 major announcements made by Prime Minister Narendra Modi to facilitate Micro Small and Medium Enterprises (MSMEs), the most hyped announcement of the year was loans to small industries in 59 minutes.
Post starting a service of loans in 59 minutes on pilot basis, the prime minister officially announced the service on November 2 during the launch of MSME support and outreach program.
With this service, MSMEs will get loans from SIDBI and 5 PSU banks namely State Bank of India, Bank of Baroda, Punjab National Bank, Vijaya Bank and Indian Bank through a dedicated portal www.psbloansin59minutes.com.
Amidst all these, recent news reports suggested that an Ahmedabad-based private fintech company, CapitaWorld is the biggest beneficiary of the 59-minutes loan scheme which is charging Rs 1000 for an application.
Even though this company is collecting all the required data from MSMEs along with the loan application, media report quoted.
Clarifying on this, Small Industries Development Bank of India (SIDBI) tweeted “A consortium of six public sector banks led by SIDBI held 56 per cent in the fin-tech company Capita World, which gave it a public sector character.”
Through a tweet, it has been also made clear that Capitaword is almost owned by public sector institutions and the choice of ‘capita’ word as a service provider for the 59 minutes loan was done through a bidding process.
In a tweet, SIDBI also mentioned that a rigorous process was followed for shortlisting and selection of the platform and capitaworld including third party validations and oversight.
SIDBI said psbloansin59minutes.com is a path breaking initiative to provide easy access to SME registered on GST platform and filing income tax.
Covered under Credit Guarantee Fund Trust for Micro & Small Enterprises (CGTMSE), so no security is needed, it added.
On security of data, SIDBI has cleared the air that the portal does not ask for passwords, and the applicants can simply download the sighted documents and upload on the portal.
It is a strategic initiative of SIBDI led PSB consortium incubated under the aegis of Department of Financial Services (DFS), Ministry of Finance.