• Source:JND
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State-owned Punjab and Sind Bank plans to launch an instant loan scheme of up to Rs 25 lakh for the MSME sector this month as part of its push to push loans through digital platforms. As part of its transformation programme, the bank has already introduced digital home loan and auto loan schemes under which approvals are in principle granted within 15 minutes of application.

"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.

This automated approach eliminates manual intervention in the processing and permitting phases, improving speed, efficiency and the customer experience, he said. Following its initial success in retail, the bank has launched similar products for MSME (Micro, Small and Medium Enterprises) borrowers up to a credit limit of Rs 25 lakh.

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The product is nearly ready and final validation of the systems and processes is scheduled to begin later this month, he said.

This STP journey of assessing and approving loans to MSME borrowers, both existing customers and new customers for the bank, will be primarily based on liquidity assessment and digital footprint tracking through applicants’ account statements and GST returns. He said, 'It's not.

The best part of such digital products is that loans can be approved even on holidays, he said, adding that default risk is minimal in such restrictions. He plans to renew and approve Kisan Credit Cards (KCCs) through digital platforms next month.

Under KCC, an unsecured loan of up to Rs 2 lakh can be given to a farmer.

"A farmer can go to our site and place a missed call on a specific number to renew the KCC and if the account meets all the criteria, it will be renewed instantly," he said.

50 lakh under the Pradhan Mantri Mudra Yojana. The bank is working to provide unsecured loans up to Rs 50,000 through a digital platform soon, he said.

Punjab & Sind Bank is committed to such digital initiatives, which will make the loan evaluation and approval process for MSME borrowers hassle-free, faster and with no or minimal manual intervention, he said.

These new product initiatives attest to the Bank’s commitment to making a positive impact on society and creating a more sustainable future for all.

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(With Inputs From PTI)

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