Economy

Home and auto loans under PSB loans in 59 minutes

‘Psbloansin59miuntes’ is a portal to enable in-principle loan processing for MSME (micro, small and medium enterprises) businesses. The portal was launched in November 2018 to ease credit availability to MSMEs.

Public sector banks (PSB) are now seeking to introduce housing and auto loans on the portal. PSBs are planning to introduce retail products to further their retail loan business. 

PSBs such as Bank of India and Indian Overseas Bank are planning to offer retail loan products on portal. Indian Overseas Bank has achieved considerable progress in the sanctioning of MSME loans.

IOB has been an active participant and achieved significant growth in the MSME loan business. IOB is also looking to extend in-principle approvals for MSME loans up to Rs 5 crore.

Also Read: How is the repo rate linked to home loans and auto loans?

The portal has enabled quick loan approvals and brought about ease in the banking processes for both the bankers and customers. At present, MSMEs can obtain an eligibility letter and in-principle loan approval in 59 minutes, and opt for a bank of their choice.

Loans approved are generally disbursed in 7 to 8 workings days. Similarly, bankers expect that the portal would facilitate the retail business of banks. 

The credit off-take as on 31 March 2019 has been Rs 35,000 crore. More than 50,706 proposals have obtained in-principle approval and out of these 27,893 proposals sanctioned.

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