PM Modi’s 59-min MSMEs loan approval: Banks disburse 2.15 lakh applications; amount tops Rs 60k crore

PM Modi’s 59-min MSMEs loan approval scheme

Loans and Financing for MSMEs: The number of loans approved by public and private banks and non-bank financial corporations (NBFC) to MSMEs under the 59-minute loan approval process as of April 30, 2021, was INR 76,670 Million dollars. Of this, 2,15,836 loans worth Rs 62,722 billion were disbursed, according to data from the Ministry of MSMEs. This represents an increase from 2.03.120 loans worth 56.773 billion rupees disbursed as of November 30, 2020, and 1.96.473 loans of 54.545 rupees disbursed as of August 31, 2020, Kotak Mahindra Bank, Indian Bank, Central Bank of India, Yes Bank and others are the partner banks for SIDBI’s 59-minute loan approval program.

Launched by Prime Minister Narendra Modi in November 2018, Working Capital Loans and Mudra Loans to MSMEs for asset purchases and machinery, technology upgrading, product expansion, purchasing raw materials, infrastructure development, etc. While basic approval for term loans and working capital loans is offered from Rs 1 lakh to Rs 5 crore, the credit limit under mudra loans is up to Rs 10 lakh. Shishu loans up to Rs 50,000, Kishore loans between more than Rs 50,000 and up to Rs 5 lakhs, and Tarun loans above Rs 5 lakhs and up to Rs 10 lakhs.PM Modi’s 59-min MSMEs loan approval: Banks disburse 2.15 lakh applications; amount tops Rs 60k crore

As of April 30, 2021, they made 4.7 per cent of the gross bank loans granted to MSMEs in March 2021 from crore to medium-sized companies) was the gross bank loan to MSMEs as of March 26, 2021.“Getting that many payouts from the banks are also very important for MSMEs. Most of these loans are below Rs 1 crore and most focus on Rs 20 lakh or less. It is mostly first-time borrowers who receive a loan under this system. But if that 4.7 per cent share of total MSME loan exposure is expected to exceed 20 per cent, it won’t happen immediately, ”Laghu Udyog Bharati general secretary Govind Lele told Financial Express Online.

In order to continue to support MSMEs affected by Covid, the government on Sunday extended the Emergency Line of Credit Guarantee (ECLGS) system by three months from June 30, 2021, to September 30, 2021, or even guarantees of Rs 3 lakh crore are issued as part of the fourth revision of the schema called ECLGS 4. The Treasury Department also announced 100% guarantee coverage on loans up to Rs 2 crore to hospitals, nursing homes, clinics and medical schools for the installation of oxygen genes on-site at ration facilities and including the civil aviation sector under the ECLGS 3.0 program.

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