New Delhi, Aug 20 (KNN) | The 59-min loan portal should have been very successful, but the awareness about it is yet to reach the targeted audience, that is MSMEs, said the chairman of country’s top public sector lender.

State Bank of India Ltd. Chairman Rajnish Kumar said that small business owners are not enthused with the Micro Small and Medium Enterprise (MSME) 59-minute loan scheme launched by the government late last year.

The bank is planning to extend the scheme to auto buyers, especially car loans, he said.

According to him, a businessman having turnover of up to Rs 25 crore can get an in-principle approval for a loan of up to Rs 5 crore within 59-minutes under the scheme launched by Prime Minister Narendra Modi in November.

He was speaking the annual banking conference Fibac.

Up to 90 percent of MSMEs, seen as the backbone of the Indian economy, can get loans under the 59-minute scheme.

“It can become a very powerful platform, the only thing is lack of awareness,” he said.

Algorithm analyses inputs such as Goods and Services Tax payments, income tax payments and cash-flow statements while making a decision on the amount of loans a borrower is eligible for.

Kumar said the bank is also planning to extend the MSME loan scheme to car and auto loans because all the loans in this category are in the same quantum.

He said he has given has given instructions that no one will be held accountable for decisions taken by the algorithm, adding that the bank staff should be responsible only for post-sanction monitoring, documentation and disbursals.

Published On : 20-08-2019

Source : KNN India