Credit and finance for MSMEs: The government and SIDBI’s 59-minute loan approval scheme for MSMEs – PSB Loans in 59 Minutes – has sanctioned 5,314 loans in the current financial year as of March 1, 2023, showed an analysis of the official data. Banks sanctioned 2,45,065 loans involving Rs 83,938 crore as of March 1 under the scheme, growing by only 2.2 per cent from 2,39,751 loans involving Rs 81,141 crore sanctioned as of April 1 in the current financial year, data from the MSME ministry’s dashboard showed.
In terms of disbursements, the scheme disbursed 4,089 loans with 1.83 per cent growth in loans disbursed to 2,26,778 loans involving Rs 67,847 crore till the beginning of March this year vis-a-vis 2,22,689 loans amounting to Rs 65,834 crores disbursed as of April 1 last year.
Also read: 59-minute loan scheme: Loans disbursed grew 2.59% YoY as of Dec 1, shows govt data
In comparison, 9,868 loans involving Rs 5,197 crore were sanctioned during FY22. From 2,29,883 loans involving Rs 75,944 crore sanctioned as of March 31, 2021, the volume of loans sanctioned jumped 4.29 per cent to 2,39,751 loans involving Rs 81,141 crore as of April 1, 2022.
The scheme provides for in-principle bank approval for collateral-free term loans or working capital loans for MSMEs from Rs 10 lakh to Rs 5 crore. The loans are covered by the government’s CGTMSE scheme. The minimum repayment tenure is one year while the maximum is 15 years with interest rates ranging from 6.8 per cent to 21 per cent depending on the MSME’s credit and risk profile.
Also read: SIDBI’s 59-min loan scheme: MSME loans jump 3.2% only YoY as of Nov; disbursals up 2.6%, shows govt data
The processing fee for the loan ranges from 0.1 per cent to 6 per cent. While the MSME borrower doesn’t need to make any payment for registration on the portal, a Rs 1,000 payment is required for receiving the digital approval for its loan application if matched by the lender’s existing loan products.
Meanwhile, the total bank credit deployed to MSMEs under priority sector loans in January stood at Rs 19.27 lakh crore – 14.4 per cent of Rs 133.4 lakh crore overall bank credit deployed across sectors –with 15.6 per cent growth from Rs 16.66 lakh crore deployed in January 2022, according to the latest data on sectoral deployment by the Reserve Bank of India.
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