Union Finance Minister Arun Jaitley has launched a brand new portal that will offer fast-track loan of up to Rs 1 crore to Micro, Small and Medium Enterprises (MSMEs).
This initiative is in line to the promise made to offer funding up to 1 core in 59 minutes to the MSMEs without entrepreneurs having to visit branches.
Financial services secretary Rajiv Kumar said in a presentation that businesses will just have to submit GST and income tax details, along with bank statement, to be eligible for faster loan sanctions. The loan will be disbursed in just eight days.
The portal has been setup by Small Industries Development Bank of India along with State Bank of India, Punjab National Bank, Bank of Baroda, Indian Bank and Vijaya Bank. Other lenders are expected to join it soon.
A single gateway will integrate platforms as soon as an MSME fills up the application form online and submits the required details. The gateway will assist in performing back-end checks with the ministry of corporate affairs and credit information bureau for fraud and product checks before the loan is sanctioned.