State-owned Punjab & Sind Bank is set to launch an instant loan scheme for the MSME sector this month, offering loans of up to Rs 25 lakh. This initiative aims to enhance credit access through the bank’s digital platform. Additionally, the bank has introduced digital home and vehicle loan schemes, providing in-principle approvals within just 15 minutes.
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“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.
He also explained that the STP approach enhances loan speed, efficiency, and customer experience. Building on the success of these retail products, the bank is now focusing on MSME borrowers, with a loan limit of Rs 25 lakh. The process for MSME loans will also rely on cash flow assessment and tracking applicants’ digital footprint, such as account statements and GST returns.
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Mehra emphasized that the digital loan process allows for sanctioning even during holidays and boasts minimal default risks. The bank is also preparing to roll out other digital services, including the renewal and sanction of Kisan Credit Cards (KCC) next month, which will offer farmers collateral-free loans up to Rs 2 lakh.
Furthermore, the bank plans to introduce collateral-free loans under the Pradhan Mantri MUDRA Yojana (PMMY) of up to Rs 50,000.
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These new digital initiatives underline Punjab & Sind Bank’s commitment to simplifying the loan application and sanctioning process, benefiting MSMEs and farmers by making credit more accessible and efficient. The bank aims to make a significant societal impact by creating a more sustainable and inclusive future for all its customers.
(With PTI Inputs)
