Incredible it is….
Public Sector Banks, worth over Rs. 30,000 crore to SMEs have been disbursed in 3 months period of its launch.
- PSBLonasin59minutes.com is an online loan approval platform which connects Public Sector Banks with Small and Medium Enterprises (SMEs).
- Credit Suisse Report reveals that this portal has become the largest ONLINE LENDING PLATFORM in India, within a period of three months of its launch.
- Low profits and bad loans has hit the PSU Banks position and handicapped them in lending.
- This platform has approved over Rs. 30,000 crore since November month last year.
- Over Rs. 6,400 crore has been sanctioned through the platform to an estimated 24,000 SMEs which is amazing.
- Further it is added that around 40,000 enterprises have received in principle approval from the banks.
- These numbers also include existing SME loans processed by the banks and routed through the platform, which is a large number due to their size and coverage of these lenders.
- The portal was launched in November 2018 with the Central Government’s initiative in order to ease fund flow to the credit-deprived MSME sector.
- It is also said that sanction rates have gone up to 60% from 36% in the beginning.
- The turnaround time is around one which was earlier more than a month.
- The existing borrowers have around 100% approval rate
- For new loans, the time taken is more and approval rates are said to be lower.
Constraints:
- Reports also add that the second half of the sanction process which is offline is not smooth as it should have been otherwise.
- In principle, approval is only the first steps which moves faster after which a branch visit is made, and physical documentation and regular appraisal by banks is expected where there is an adequate delay.
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