An expert committee on micro, small and medium enterprises suggested that Psbloansin59minutes, an online loan application platform led by the Government of India should increase coverage and extend loans to startups, cited ET.
“The committee recommends that the portal should also cater to new entrepreneurs, including those applying for loans under the Pradhan Mantri Mudra Loan Yojana and Stand-Up India,” the committee said.
The platform permits both private and public sector banks to participate in loan disbursal. While government-owned banks were the first on the platform, Kotak Mahindra Bank was the first private sector lender to join the initiative.
In a report by the panel said that Psbloansin59minutes that caters to funding MSMEs (micro small medium sized enterprises), also needs to track data from several sources besides tax filings through the GST (Goods and Services Tax) network and bank statements.
“Further, the portal should be linked to land records, Central Registry of Securitisation Asset Reconstruction and Security Interest and Credit Guarantee Fund Trust for Micro and Small Enterprises,” it further said.
The committee has also suggested the formation of a joint working group of the Indian Banks’ Association and Sidbi to iron out issues pertaining to creation of new MSME lending products and reducing turnaround time during the centralised sanctions stage.
Moreover, the committee, which was made by the RBI (Reserve bank of India) was headed by former Securities and Exchange Board of India chief UK Singh.
When businesses apply for loans, they are assessed through various sources like GST(goods and services tax) data, tax filings, bank statement of the proprietors and their businesses.
Based on the assessment, they are offered an in principle approval letter, which enables them to get bank credit.
Furthermore, some of the private online loan provider in India includes i2iFunding, Lendbox, LenDenClub, Instapaisa.com, cashkumar.com, Paisadukan.com, and others.