Bikky Khosla | 13 Nov, 2018
The government recently launched a 'Support
and Outreach Initiative' for micro, small and medium enterprises. As part of
this programme, 12 key initiatives have been launched. Among them, what stands
out, without an iota of doubt, is the launch of a 59-minute loan portal for
MSMEs. This dedicated digital platform seeks to cut the lengthy and cumbersome loan
approval process -- one of the biggest challenges facing our MSMEs.
So, how to get loans under this
facility? First, an applicant will be required to visit the official website, www.psbloansin59minutes.com
and there complete the sign up process. The next levels will include some simple
steps like answering some basic questions and giving GST details;
uploading bank statements (or log in with your net-banking credentials) and
mentioning directors' details; citing the purpose of loan; and finally
selecting a bank and paying a convenience fee.
The registration does not involve any payment, but if an
applicant's proposal matches the products of banks and the applicant wants to
receive an approval in principle, he will be required to make a nominal payment
of Rs 1,000 plus applicable taxes. The loan amount will be between Rs 10 lakh
and Rs 1 crore and the rate of interest (RoI) starts from 8%. After the
approval in principle of the application, the loan amount will be disbursed in
7-8 working days. For further details, you may check the FAQ section of the official website.
Needless to say, the 'loans in 59 minutes' promise sounds great.
The MSME sector, which contributes 30% to India's GDP, were hit hard by the
twin shocks of demonetisation and implementation of the Goods and Services Tax.
Additionally, MSMEs have to bear the brunt of the
ongoing bank NPA crisis. More recently, fall in amount of lending by
non-banking financial companies in the aftermath of the IL&FS crisis has also
affected them negatively. In this background, it seems need of the hour to pump
extra credit into the sector.
I invite your opinions.