SME Loan: Nearly 80 per cent loan applications filed on psbloansin59minutes.com portal were accorded in-principle approval.
SME Sector: Prime Minister Narendra Modi’s push to provide fast and easy credit to small and medium enterprises seems to be working as two-third loan applications filed on the government portal for granting loans in less than an hour are being approved. According to latest official data, nearly 80% of more than 2 lakh applications filed on the psbloansin59minutes.com were approved in-principle. And more than two-thirds of total loan applications were eventually sanctioned under the government’s flagship scheme to provide loans to small and medium enterprises in less than an hour.
“Out of 2,00,660 applications submitted, 1,59,583 applications for loans on the psbloansin59minutes.com portal have been accorded in principle approval since the launch of the portal,” Anurag Thakur, minister of state for finance informed the Rajya Sabha.
Prime Minister Modi launched www.psbloansin59minutes.com portal in November to meet urgent loan requirement of SME sector at a breakneck speed.
Over 1.33 lakh loan applications filed on the psbloansin59minutes.com portal were eventually sanctioned. This is more than two-thirds of the total loan applications.
SME sector is crucial for Prime Minister Narendra Modi’s bid to arrest the slowdown in the economy. According to some estimates, SMEs employ 12 crore persons and account for 45% of the country’s total exports. According to the industry chamber CII, the contribution of MSMEs in the country’s manufacturing GDP is estimated at 6.11% and over 25% in the service sector.
The government has asked the banks to aim for 20% annual increase in lending to SME sector. It has also asked the banks to ensure that 60% of the total loans are given to very small firms called micro industries.
Modi government has also asked the banks to open at least one specialised branch in every district of the country and offer them easy loans to meet the requirement of working capital of up to Rs 5 crore.