Loan worth Rs 37,870 crore disbursed under 59-minute loan scheme: Sources


59minsLoan worth Rs 37,870-crore had been disbursed under 59-minute loan scheme for micro, small and medium enterprises (MSMEs) till March 31, said sources.

The Prime Minister’s Office has directed the Union Ministry of Finance to review the progress of the scheme and increase disbursals, sources reveal.

Further, the Finance Ministry is planning to raise Rs 1-crore cap on 59-minute loans to Rs 3-5 crore gradually.

The 59-minute loan scheme was unveiled late last year for the benefit of MSMEs. It is a part of Prime Minister Narendra Modi’s 12-point action plan for the MSMEs announced in November 2018.

Extending hassle-free loans to such units which are without any collateral has been a hit on, as it has reduced the turnaround time for sanctioning loans from 20-25 days to 59 minutes.

It is a strategic initiative of the Small Industries Development Bank of India (SIBDI)-led PSBs’ consortium incubated under the aegis of the Department of Financial Services (DFS).

The majority stake is held by the SIDBI and five large PSBs — State Bank of India (SBI), Bank of Baroda, Punjab National Bank (PNB), Vijaya Bank and Indian Bank.

"Exciting news! Elets Banking & Finance Post is now on WhatsApp Channels Subscribe today by clicking the link and stay updated with the latest insights!" Click here!

Elets The Banking and Finance Post Magazine has carved out a niche for itself in the crowded market with exclusive & unique content. Get in-depth insights on trend-setting innovations & transformation in the BFSI sector. Best offers for Print + Digital issues! Subscribe here➔

Get a chance to meet the Who's who of the Banking & Finance industry. Join Us for Upcoming Events and explore business opportunities. Like us on Facebook, connect with us on LinkedIn and follow us on Twitter, Instagram & Pinterest.