SIDBI’s 59-Minute Loan Scheme: Total Approvals Close To 2.5 Lakh To MSMEs, Including Over Rs 80k Crore So Far

Loans and Finance for MSMEs: Bank loans sanctioned to Micro, Small and Medium Enterprises (MSMEs) under SIDBI’s 59-minute loan approval scheme till June 1, 2022, from Rs 81,690 crore to 2,40,852 as per the monthly data of the MSME ministry on PSB-loans-in was. -59 minute program. Out of the total loans sanctioned, 2,23,507 loans worth Rs 66,256 crore have been disbursed so far. Further, during the first two months (April-May) of the financial year 2022-23, around 1,101 loans were sanctioned, while 818 were disbursed, as per the data. Loans sanctioned till April 1, 20222,39,751 were while the loans disbursed were 2,22,689.

Launched in November 2018, the scheme enables in-principle bank approval to MSMEs for collateral-free term loans or working capital loans ranging from Rs 1 lakh to Rs 5 crore. However, the amount disbursed through the scheme accounted for only a single digit share of 4.63 per cent of the total bank credit of Rs 17.63 lakh crore to MSMEs in April 2022. The latest data on sectoral deployment of bank credit was released by the Reserve Bank. of India on 31 May 2022.

While the borrower is not required to pay for registration on the portal, borrowers need to pay Rs 1,000 whose loan application matches the lenders’ products and get in-principle approval, as per the scheme’s FAQs. wants to do Further, the time taken for loan disbursement post approval is based on the information and documentation provided by the borrower on the portal and banks. “The more accurate the data, the sooner you will get disbursal. Normally, after in-principle approval, the loan is expected to be sanctioned/disbursed in seven-eight working days,” according to the portal.

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In terms of collateral, while borrowers without collateral security can avail business loans through the portal under the CGTMSE scheme, obtaining collateral for loan disbursement from lenders is at the discretion of the lenders. 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: State Bank Of India, Punjab National Bank, Bank Of Baroda, ICICI Bank, Kotak Mahindra BankAnd indusind bank to disburse loans.