Banks Can Approve Loans up to 1 Crore to MSMEs Within an Hour: Government
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Are you an entrepreneur but worried about the initial funding? Well, good news has arrived! Finance minister, Arun Jaitley has launched a new portal to approve loans for micro, small and medium enterprises (MSMEs).
The new portals will fast-track the process of approving the funding up to Rs 1 crore to MSMEs within 59 minutes without visiting the branches.
How to Get Loan Approved
Rajiv Kumar, the financial services secretary highlighted the vital points of how a business can get his/her loan approved.
Those businesses, who submit GST and income tax details, along with bank statement are eligible to get their loan approved for speedier sanctions.
The portal has been set up by Sidbi along with SBI, PNB, Bank of Baroda, Indian Bank and Vijaya Bank, with other banks expected to join in the coming days.
The MSME needs to fill up the online application form first and then submit the required details, a single gateway will integrate platforms, which will help perform back-end checks with the ministry of corporate affairs and credit information bureau to check fraud and product before the loan is sanctioned.
The news report suggests that the government is keen to push funding to small businesses through schemes like MUDRA as it sees them as an engine of growth and a generator of jobs.
There are many MSMEs struggling to push their idea forward. But the thought of generating initial funds is keeping them at bay. With this great initiative, a lot of opportunities, as well as jobs, will be created in almost all cities and towns.
The Finance Minister has also announced two new initiatives:
- A mobile app to help patrons locate the nearest ATMs and bank branches in their area or locality.
- Ranking states on financial inclusion
Kumar said banks have been asked to provide banking facility to 8,800 villages across the country, which currently does not have any touch point in a 5-km radius.
This article was initially published in Franchise India by Nibedita Mohanta.