9,800 MSME loans sanctioned in FY22 under SIDBI’s 59-minute loan program; this number disbursed

Credit and financing for MSMEs: SIDBI’s 59-minute loan approval program for micro, small and medium-sized enterprises (MSMEs), PSB Loans in 59 Minutes, sanctioned just 9,868 loans worth Rs 5,197 crore during the fiscal year 2021-22, according to analyzed government data. According to MSME Scorecard data, 2,39,751 loans involving Rs. 81,141 crore were sanctioned as of April 1, 2022, up 4.29% from the 2,29,883 loans involving Rs. 75,944 crore sanctioned as of March 31, 2021.

Similarly, in terms of disbursements, only 8,155 loans amounting to Rs 3,729 crore were disbursed on sanctioned loans in the last financial year. Disbursements had jumped by 3.80% to 2,22,689, involving Rs 65,834 crore on 2,14,534 loans amounting to Rs 62,105 crore, during the said period.

The program portal psbloansin59minutes.com allows bank approval in principle for unsecured term loans or working capital loans for MSMEs from Rs 10 lakh to Rs 5 crore. It is important to note that the amount of credit disbursed as of April 1, 2022 was 4% of the total bank credit of Rs 16.10 lakh crore deployed in the MSME sector in February 2022, according to the latest data on sector deployment of the Reserve Bank of India.

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The 59-minute loan approval program has partnered with over 21 public and private lenders including SBI, Punjab National Bank, Bank of Baroda, ICICI Bank, Kotak Mahindra Bank and IndusInd Bank. Although the program does not charge borrowers any registration fee on the portal, MSMEs have to pay Rs. lenders,” according to the plan’s FAQ.

In addition, depending on the program, the loan disbursement time depends on the information and documents provided by the borrower on the portal and with the bank. “The more accurate the data, the sooner you will get the disbursement. typically, after approval in principle, the loan should be sanctioned/disbursed within seven to eight business days. »

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