Tapping into the fruitful and more rewarding market of loans to Micro Small and Medium Enterprises, many banks have accelerated and geared their lending activities towards small businesses.
As far as the documentation authenticity and accuracy is checked and validated, the market for MSME loans is always more rewarding in comparison to retail or well-established larger borrowers, said a bank executive from lending department.
Speaking on the 59 minutes loans approval process through https://www.psbloansin59minutes.com/ a Finance Ministry official has clarified that the approval is designed to ensure minimal human intervention in Sanctioning the loan. Since the online portal is designed to capture all the required loan documentation digitally, the loan approving authority is now required to state reasons for delays or denial to an application.
The official also said, that the actual disbursement of the loan post in-principle approval from the portal has also been expedited to a week’s time.
The documentation required for the loan clearance is also objective and clear. Most of the loan sanctions require the following:
- Latest audited P & L account and balance sheet
- IT returns
- GST data and
- Bank statements
Looking at the economic indicators, we know that more than 75% of the employment opportunities in India are generated through MSMEs. Even so the credit availability to these highest employment generators has always received a skeptical and a stepchild preference.
With regards to growth and uptake bankers are positive and look forward to substantial growth in loan disbursements to MSMEs in next 5 to 10 years.