SIDBI’s 59-Minute Lending Program: Lending to MSMEs jumped just 3.2% year-on-year from November; disbursements up 2.6%, according to government data

Credit and financing for MSMEs: SIDBI’s 59-Minute Loan Approval Program for Micro, Small and Medium Enterprises (MSMEs), PSB 59-Minute Loans only saw a 3.2% increase in sanctioned loan applications on 1st November 2022, compared to the period of the previous year. Banks sanctioned 2,43,140 loans worth Rs. 82,962 crore as of November 1, 2022, compared to 2,35,511 loans worth Rs. 78,738 crore sanctioned as of November 1, 2021, according to official data from the dashboard of the Ministry of MSMEs.

In terms of loans disbursed, the year-on-year growth was only 2.6% from 2,19,526 loans amounting to Rs 64,326 crore disbursed as of November 1, 2021 to 2,25 236 loans for Rs 67,007 crore as of November 1. , 2022. During monthly sanctions and disbursements, MSMEs were sanctioned for 2,42,812 loans worth Rs 82,822 crore as of September 30, 2022, while 2,25,015 loans worth Rs 66,922 crore were disbursed .

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The scheme, which allows bank approval in principle for unsecured term loans or working capital loans to MSMEs from Rs 1 lakh to Rs 5 crore in 59 minutes, was launched in November 2018. Although registration is free for borrowers, they are required to pay Rs 1,000 to receive approval once the loan application matches the lenders’ products, according to the program’s FAQ. The loan disbursement time depends on the information and documentation provided by the borrower.

Currently, more than 21 partner banks including SBI, Bank of Baroda, ICICI Bank, Kotak Mahindra Bank, Punjab National Bank, etc. are available to benefit from the scheme. Although the borrower can avail the loan even in the absence of collateral under the CGTMSE scheme, it is at the discretion of the lenders and collateral may be requested as per the guidelines. Borrowers are required to share GST and income tax details, bank statements and business ownership details to apply for a loan.

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