To fast-track loans for micro, small and medium enterprises (MSMEs), Finance Minister Arun Jaitley has launched a new portal.
The government took the initiative as it had promised that banks will approve funding of up to Rs 1 crore in less than an hour, without entrepreneurs having to visit bank branches.
Financial Services Secretary Rajiv Kumar said businesses need to submit GST and income tax details, along with bank statement, to be eligible for speedier loan sanctions. He added the loan will be disbursed within eight days.
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 five kilometer radius.
To avoid any fraud in the system, once an MSME fills up the application form online and submits the required details, a single gateway will integrate platforms that will help perform back-end checks with the Ministry of Corporate Affairs and Credit Information Bureau for product checks before the loan is sanctioned.
Jaitley also announced two new initiatives, including ranking states on financial inclusion, and a mobile app to help consumers locate the closest bank branches and ATMs. The portal has been set up by SIDBI along with the SBI, PNB, Bank of Baroda, Indian Bank and Vijaya Bank, with other banks expected to join in the coming days.