Government’s 59 minute Loan Portal sanctions more than Rs.86,500 crore

Prime Minister Narendra Modi’s 59-minute loan portal has approved over Rs.86,500 crore to almost 250,000 applicants, since its November 2018 introduction with the primary goal of facilitating rapid credit access for micro, small, and medium-sized firms (MSMEs), according to an official.

With the request to remain anonymous, he stated, “The online portal helps in rapid approval of loan applications up to Rs. 5 crore made by MSMEs by analysing their creditworthiness based on their goods and services tax (GST) and other data.”

The state-run Small Industries Development Bank of India (Sidbi) is leading a consortium of lenders that includes the State Bank of India, Punjab National Bank, Bank of Baroda, and Canara Bank. Online PSB Loans Ltd (OPL), a fintech company based in Ahmedabad, is at the forefront of this AI- and machine learning-driven lending ecosystem.

“We want all MSME entrepreneurs and businessmen who pay GST to have access to government facilities at their doorstep. I am glad that keeping all these things in mind, I am finally dedicating this GST Portal to you to facilitate loan acceptance in just 59 minutes,” Modi stated on November 2, 2018 while announcing 12 key initiatives for MSMEs, including the 59-minute loan portal.

According to an expert, real-time integration of multiple ecosystems, including banks, income taxes, GST, MCA21, and credit bureaus, aids in analyzing loan applicants’ creditworthiness.

He went on to say that a machine makes the choice about company loans without the need for human input.

The service also provides loans for homes, cars, and personal use.

According to an expert, loan applications may be rejected due to a variety of factors, including incomplete or unreliable applicant data, unresponsiveness, or inability to submit necessary documentation. Occasionally, applicants reject the approved amounts which can be less than what they stated in their application. The portal has received 410,000 loan applications totalling Rs.1.73 lakh billion thus far.