Public Sector Banks (PSB) are preparing to expand their retail lending business with home loans, auto loans and other retail loans on the psbloansin59minutes exchange portal. The portal provides rational approval for micro, small and medium enterprises (MSMEs) within 59 minutes or one hour. State Bank of India (SBI), Union Bank, Corporation Bank and other PSBs have decided to increase the amount sanctioned through this portal to Rs 5 crore.
The Bank of India is in the process of onboarding some retail loans through the portal to make it easier to lend. Salil Kumar Swain, the General Manager, Bank of India, said, "We are working towards onboarding home and auto loans in the existing portfolio."
Similarly, the Indian Overseas Bank (IOB) also offers retail loans on the portal. IOB is actively involved in approving loans to MSMEs through the portal. The bank said in a statement last week that their growth in lending has improved so far, the number of borrowers and the amount sanctioned for the loan has increased rapidly when compared to the early stages.
The scheme has received positive feedback from borrowers. As such, the bank is in the process of accepting the loans up to Rs 5 crore under MSME. It also offers home and personal loans through the bank's platform at a fixed time.
This platform helps to speed up credit delivery and save time for bankers as well as consumers. A bank official said that the introduction of other products on the platform would enhance the bank's retail business and reduce transaction costs.
After the ratification of the portal, the borrower has the option of selecting the preferred bank. Upon receipt of the loan approval letter, the loan amount is granted within 7-8 working days. More than Rs 35,000 crore of loans have been sanctioned through the portal within four months of its opening. As of March 31, 2019, more than 50,706 proposals were approved, out of which 27,893 were sanctioned.
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