Credit and Finance for MSMEs: Small businesses would also be able to check their CIBIL score, CIBIL rank, loan eligibility and apply for a loan on online lending marketplace PSBloansin59minutes from MSMESaksham.
Credit and Finance for MSMEs: Small business enabler SIDBI on Thursday launched an online knowledge portal for micro, small and medium enterprises in partnership with credit information company TransUnion CIBIL. The new platform called MSMESaksham “will guide MSMEs seeking seamless and quick access to finance” and also help them in “managing their credit obligations,” SIDBI said. “The most difficult part for MSMEs is access to credit and credit-linked information. They should have the right information to access credit as MSMEs mostly suffer from information asymmetry. We are trying to solve this problem to make them loan ready,” Subodh Kumar, General Manager, SIDBI told Financial Express Online.
The launch comes nearly three months after SIDBI had announced the upcoming launch of India SME Services platform – an all-in-one portal for everything an MSME possibly needs such as services around automated accounting, tax reconciliation, information around eKYC, credit enhancement, advisory services, network access with other businesses, etc. While this was expected to be launched around this month, however, Kumar told that it shall come up in another three-four months.
Meanwhile, with MSMESaksham, MSMEs would have access to knowledge content around starting and growing business, managing finance, registering a business along with resources in terms of government schemes, state-wise details around MSME loans, and more. “What options are available to them for raising credit, what are the government’s schemes etc. will be known to MSMEs. Even schemes under the Atmanirbhar campaign are not reaching out to the needy and to the last-mile businesses. We are attempting to solve this and help MSMEs in their growth agenda,” said Kumar.
Small businesses would also be able to check their CIBIL score, CIBIL rank, loan eligibility and apply for a loan on online lending marketplace PSBloansin59minutes from MSMESaksham. “While we are supporting banks and credit institutions with solutions to drive faster and digitalized access to credit for MSMEs, we are also extending guidance and enabling access to CIBIL Rank and commercial credit report for the MSMEs,” Rajesh Kumar, Managing Director and CEO of TransUnion CIBIL in a statement.
The 59-minute time window, importantly, is for getting in-principle approval (and not for amount getting credited into the bank account) for a loan from Rs 1 lakh to Rs 5 crore from around 25 public and private banks and NBFCs, according to psbloansin59minutes.com. For Mudra loans, in-principle approval is provided for an amount up to Rs 10 lakh
“Financial institutions look for CIBIL score before considering MSMEs for lending. We are trying to provide this to MSMEs free of cost otherwise they usually pay Rs 1,500-2,000. Also, we have a loan eligibility calculator to calculate based on the income tax return and financials of the business. For Psbloianin59minutes, MSMEs can indicate their preferred lender who will pick and assess their application,” Kumar added.