Punjab & Sind Bank plans to unveil instant loan scheme for MSMEs based on GST return
As part of its transformative agenda, the bank has already introduced digital home loan and vehicle loan schemes under which in-principle approval for an application is given within 15 minutes.
Punjab & Sind Bank plans to unveil instant loan scheme for MSMEs based on GST return
State-owned Punjab & Sind Bank plans to launch an instant loan scheme of up to Rs 25 lakh for the MSME sector during this month as part of its initiative to push credit through its digital platform. As part of its transformative agenda, the bank has already introduced digital home loan and vehicle loan schemes under which in-principle approval for an application is given within 15 minutes.
"The journey from applying the loan to sanction, for both the segments i.e. PSB e-Apna Ghar and PSB e-Apna Vahan (launched last month), is based on Straight Through Process (STP) which runs on a pre-defined Business Rule Engine (BRE)," Punjab & Sind Bank Executive Director Ravi Mehra said.
This automated approach eliminates manual intervention at the processing and sanctioning stage, enhancing the speed, efficiency, and customer experience, he said.
After initial success on the retail side, he said, the bank has lined up similar products for MSME (Micro, Small & Medium Enterprises) borrowers up to the loan limit of Rs 25 lakh to begin with. The product is almost ready and final checking of the system and processes are being done before the launch planned later this month, he said.
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This STP journey for assessing and sanctioning the loans to MSME borrowers, both the existing customers and those new to the bank as well, shall be primarily based on the cash flow assessment and tracking the digital footprint through the account statement and GST returns of the applicant, he said.
The best part of such digital products is that the loans can be sanctioned even during the holidays, he said, adding, that default risks in such sanctions are very low. Going forward, he said, the bank is also planning to launch the renewal and sanction of the Kisan Credit Card (KCC) through a digital platform next month.
Under the KCC, up to Rs 2 lakh loan can be sanctioned to a farmer without collateral. A farmer can visit our platform or give a missed call on a specified number for renewal of KCC and if the account fulfills all criteria, the renewal will be done instantly, he said. The bank is also working on providing collateral-free loans under the Pradhan Mantri MUDRA Yojana (PMMY) of up to Rs 50,000 through its digital platform soon, he said.