Web Portal to Help Small Businesses Get Loan Approval in Just 59 Minutes
The Finance Minister of India, Arun Jaitley, launched Tuesday a web portal for Micro, Small and Medium Enterprises (MSME).
It will enable in principle approval for MSME loans up to Rs. 1 crore within 59 minutes from Small Industries Development Bank of India (SIDBI) and 5 Public Sector Banks (PSBs). It is a strategic initiative of SIBDI-led PSB consortium incubated under the aegis of Department of Financial Services (DFS), Ministry of Finance.
According to the government, the portal sets a new benchmark in loan processing and reduces the turnaround time from 20-25 days to 59 minutes. Subsequent to this in principle approval, the government says, the loan will be disbursed in 7-8 working days.
A new step in MSME banking credit space, the portal is one of its kind platform in MSME segment which integrates advanced technology to ensure seamless loan approval and management.
The solution uses sophisticated algorithms to read and analyze data points from various sources such as IT returns, GST data, bank statements, etc. in less than an hour while capturing the applicant’s basic details using smart analytics from available documents.
The system simplifies the decision-making process for a loan officer as the final output provides a summary of credit, valuation and verification on a user-friendly dashboard in real time.
Photo courtesy: Press Information Bureau
