Finance Minister Arun Jaitley has launched a new portal to fast-track loans for micro, small and medium enterprises (MSMEs). Through the newly launched platform, MSME can get principal approvals for loans up to Rs 1 crore within 59 minutes.
For being eligible for speedier loan sanctions, Businesses need to submit GST and income tax details, along with bank statement. Rajiv Kumar, Financial Services Secretary, said that the loan will be disbursed within eight days.
The Finance Ministry said, "The portal sets a new benchmark in loan processing and reduces the turnaround time from 20-25 days to 59 minutes."
The loan processing will take place without any manual intervention until the sanction or disbursement stage. The MSME borrower will not be required to submit any documents physically for getting in-principle approval.
The Ministry said, "The solution uses sophisticated algorithms to read and analyse data points from various sources such as IT returns, GST data, bank statements, MCA21, etc. in less than an hour while capturing the applicants basic details using Smart analytics from available documents."
