MSME loans: The 59-minute loan approval scheme for micro, small and medium enterprises (MSMEs) by the government and SIDBI has sanctioned 2.47 lakh loans till September 1, 2023, up 2.27 per cent from 2.41 lakh loans sanctioned as of September 1, 2022. According to the data available on the MSME Ministry’s dashboard, Rs 85,194 crore loans were sanctioned so far in comparison to Rs 82,323 crore during the year-ago period. Out of sanctioned loans, 2,28,273 loans involving Rs 68,729 crores were disbursed till September 1 this year, growing only 1.76 per cent from 2,24,323 loans involving Rs 66,635 crore disbursed till September last year.
Also read: Bank credit to micro, small enterprises up 17% in July: RBI report
In a month-on-month comparison, 2,46,997 loans involving Rs 85,054 crore were sanctioned as of August 1, of which 2,28,118 loans amounting to Rs 68,636 crore were disbursed, indicating only 276 loans amounting to Rs 140 crore sanctioned in August while 155 loans involving Rs 93 crore disbursed during the month.
Launched in November 2018, the scheme offers in-principle bank approval for collateral-free term loans or working capital loans to MSMEs from Rs 10 lakh to Rs 5 crore in 59 minutes. MSMEs can seek collateral-free loans under the scheme while it is as per the bank’s discretion to ask for collateral, according to the information available on the portal.
Also read: PSB Loans in 59 Minutes: Rs 68,636 crore loans disbursed to MSMEs till August 1
Other than term loans and working capital loans, MSMEs can apply for Mudra loans to buy new plant and machinery, upgrading technology, expanding products, purchasing raw materials, and developing infrastructure, among others.
Meanwhile, banks deployed Rs 20.86 lakh crore credit to MSMEs under priority sector lending during July 2023 — 14.1 per cent of India’s total non-food bank credit worth Rs 147.8 lakh crore against Rs 21.14 lakh crore deployed in June. In July 2022, Rs 18.03 lakh crore – 14.6 per cent of non-food bank credit worth Rs 123.3 lakh crore — was deployed in the MSME sector.