Good news for MSMEs! This private bank becomes first to join psbloansin59minutes.com, offer Rs 1 crore loan in 59 minutes

In a major good news for micro, small & medium enterprises (MSME), the private lender Kotak Mahindra Bank has joined hands with PSB Loans Limited, where the former will now give loans approvals in just 59 minutes. With this, Kotak Mahindra becomes the first private sector lender to join the platform psbloansin59minutes.com. Generally, sanctioning a loan is time consuming, as banks look into factors like eligibility, business module, credit score, past history of banking transactions, income and  various list of documents among others. Hence, getting a loan has been a difficult case for many citizens and corporates, however, considering the NDA government has been boosting MSMEs movement, there have been quite a revival witnessed in past years. 

Ambuj Chandna, Senior Executive Vice President & Head – Consumer Assets, Kotak Mahindra Bank said, “We are delighted to join psbloansin59minutes.com and participate in the Government of India’s initiative to facilitate easier access to credit to micro, small & medium enterprises. Small business owners require quick and hassle-free access to loans to grow or diversify their business.”

Chandna added, “At Kotak, we offer a range of customised financing options with flexible repayment options. We are also seeing a steady rise in customers availing loans through digital channels.” 

Meanwhile, Manoj Mittal, DMD, SIDBI said, “The on-boarding of Kotak Mahindra Bank is an important milestone for the portal. In addition to making a wide choice of credit products from Public Sector Banks available to MSMEs registering on the platform, they now also get an option to access private sector lenders as well. This is true democratization of finance for the MSME segment.”

What will happen is that now, MSME loan aspirants will get the option to avail of ‘in-principle’ loan approvals in just 59 minutes from both public sector and private sector banks (presently only Kotak) through this platform.

At PSB Loan in 59 minutes, after MSMEs get an eligibility letter and an in-principle approval in less than 60 minutes and can choose the bank of their choice. The value of the Contactless Business Loans offered ranges from Rs 1 lakh up to Rs 1 crore. The rate of interest starts from 8% onwards. The platform is directly connected to the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme. The solution uses advanced algorithms to analyze data points from various sources such as IT returns, GST data, bank statements etc.