PSB Loans In 59 minutes disburses ₹39,580 crore credit to businesses so far

Furthermore, on the portal, approximately 17,791 proposals to the tune of ₹1,689 crore have been disbursed in the retail loan category.

The information was announced by the Union Minister of State for Finance Dr Bhagwat Kisanrao Karad in a written reply to a question in Rajya Sabha on Tuesday.

The minister mentioned 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.

Explaining the handling of loans, the minister said that loan appraisal and processing are carried out by respective branches and loan processing centres of the lenders.

Further, the Minister stated that 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.

Through the portal, an MSME can avail business loan from a minimum of ₹1 lakh to a maximum of ₹5 crore post-in-principle approval. The preferred lender (as selected by the borrower) will conduct thorough due diligence and decide on whether to sanction/disburse the proposal. The final decision will be at the lender’s discretion.