Uday Kotak-led Kotak Mahindra Bank on Monday said that it has become the first private sector lender to join the platform -- psbloansin59minutes.com -- to offer loans of up to Rs 1 crore to micro, small & medium enterprises (MSME).
Uday Kotak-led Kotak Mahindra Bank on Monday said that it has become the first private sector lender to join the platform — psbloansin59minutes.com — to offer loans of up to Rs 1 crore to micro, small & medium enterprises (MSME).
Kotak Mahindra Bank now joins the other public sector banks (PSBs) to offer loans to the small businesses that receive approval in less than 60 minutes. Under the facility, the aspirant gets an eligibility letter, in-principle approval in less than an hour by choosing the bank that he may prefer to access to credit.
“We are delighted to join psbloansin59minutes.com and participate in the Government of India’s initiative to facilitate easier access to credit to micro, small & medium enterprises”, Ambuj Chandna, Senior Executive Vice President & Head – Consumer Assets, Kotak Mahindra Bank said.
Recently Credit Suisse had said in its report that the fintech portal PSBloansin59minutes.com, within three months, emerged as the largest online lending platform. Loan approvals have already exceeded Rs 300 billion and disbursements are estimated at Rs 250 billion, it added.
“The on-boarding of Kotak Mahindra Bank is an important milestone for the portal. In addition to making a wide choice of credit products from Public Sector Banks available to MSMEs registering on the platform, they now also get an option to access private sector lenders as well. This is true democratization of finance for the MSME segment,” Manoj Mittal, DMD, SIDBI said.
In November 2018, Prime Minister Narendra Modi had announced the launch of the 59 minute loan portal to enable easy access to credit for MSMEs.