Punjab & Sind Bank to Launch Instant MSME Loan Scheme Up to ₹25 Lakh

Punjab & Sind Bank, a state-owned financial institution, is gearing up to launch an instant loan scheme for the Micro, Small, and Medium Enterprises (MSME) sector later this month. The scheme, with a loan cap of up to ₹25 lakh, aims to boost credit disbursement through the bank’s digital platform, according to Executive Director Ravi Mehra.

As part of its digital transformation agenda, the bank has already rolled out instant home loan and vehicle loan schemes, providing in-principle approval within 15 minutes. The initiatives—PSB e-Apna Ghar and PSB e-Apna Vahan—leverage a Straight Through Process (STP) powered by a Business Rule Engine (BRE).

“This automated approach eliminates manual intervention during processing and sanctioning stages, enhancing speed, efficiency, and the overall customer experience,” Mehra said 

Following the success of its retail digital products, the bank is finalising a similar offering for MSME borrowers. The upcoming product, designed to cater to both existing and new customers, utilises cash flow assessments and digital footprints such as GST returns and account statements for loan processing.

“The system is undergoing final checks and is set to launch later this month,” Mehra confirmed. The digital framework ensures loans can be sanctioned even on holidays, with minimal risk of default, he added.

Punjab & Sind Bank is also preparing to digitise the renewal and sanctioning of Kisan Credit Cards (KCC) next month. Farmers can secure loans of up to ₹2 lakh without collateral by visiting the platform or giving a missed call. Eligible accounts will be renewed instantly.

Additionally, the bank plans to launch a collateral-free loan product under the Pradhan Mantri MUDRA Yojana (PMMY) for loans up to ₹50,000 via its digital platform.

Mehra emphasised the bank’s commitment to streamlining the credit assessment and sanctioning process for MSME borrowers. “These digital initiatives are designed to make borrowing faster, hassle-free, and almost entirely free of manual intervention,” he said.

The bank views these advancements as part of a broader strategy to foster financial inclusion and create a sustainable future.

By adopting these digital-first approaches, Punjab & Sind Bank is positioning itself as a leader in modern banking solutions while addressing the diverse credit needs of retail and business customers alike.