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 www.psbloansin59minutes.com, 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.