"Loan In 59 Minutes" Initiative: State-Owned Banks Disburse Rs 39,580 Crore

Public Sector Banks (PSBs) have disbursed Rs 39,580 crore business loan under the initiative called 'loan in 59 minutes' between September 2018 and February 2022, Union Minister of State for Finance Bhagwat Kisanrao Karad said on Tuesday.

The loan is disbursed through psbloansin59minutes.com portal.

Since the inception of the psbloansin59minutes.com portal on September 25, 2018 till February 28 this year, 2,01,863 proposals amounting to Rs 39,580 crore have been disbursed in the business loan category and 17,791 proposals amounting to Rs 1,689 crore have been disbursed in the retail loan category, the minister said in written reply to a question in the Rajya Sabha.

Karad stated that the portal only offers a platform for speedier in-principle approval by lenders onboarded on it. The final credit decision taken on loan applications sourced through the portal is taken by the lenders and monitoring of the accounts of sanctioned loans, including steps to effect recovery in any accounts that are subsequently classified as non-performing assets (NPA), is also done by the lenders. Details of the same are not centrally maintained.

On the handling of loans, the Minister said loan appraisal and processing is carried out by respective branches and loan processing centres of the lenders.

He said many lenders connect or integrate with digital credit marketplaces like psbloansin59minutes.com, paisabazaar.com, CredAvenue, Trade Receivables Discounting System (TReDS) platform, etc to connect with loan customers in various segments, like retail, micro, small and medium enterprises (MSMEs), etc as per their respective business focus.

"Onboarding on such credit marketplaces is done by the lenders as per their own internal approvals," the minister said.