Loan evaluations will be conducted based on cash flow, digital account statements, and GST returns.
State owned Punjab & Sind Bank is set to introduce an instant loan scheme for Micro, Small, and Medium Enterprises (MSMEs), providing loans of up to ₹25 lakh. The instant loan scheme aims to streamline credit access for MSMEs through the bank’s digital platform, which will facilitate loan approvals based on GST returns.
This digital-centric strategy builds on the bank’s current digital offerings for home loan and vehicle loan, which allow for in-principle approvals in just 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 told PTI.
Following the success of its retail offerings, the bank is extending the same automated process to MSMEs. Loan evaluations will be conducted based on cash flow, digital account statements, and GST returns, thereby providing a streamlined experience for both current and new clients. This new initiative, expected to launch by the end of this month, will allow MSMEs to obtain loans even during holidays.
“The product is almost ready and final checking of the system and processes are being done before the launch planned later this month,” Mehra added.
The bank is also set to digitise the renewal and approval processes for Kisan Credit Cards (KCC) by next month, enabling farmers to secure loans of up to ₹2 lakh without the need for collateral. Additionally, there are plans to provide collateral-free loans under the Pradhan Mantri MUDRA Yojana (PMMY), with amounts reaching up to ₹50,000.
