Punjab & Sind Bank Launching Rs 25 Lakh Instant Loan Scheme For Msmes

(MENAFN- KNN India) New Delhi, Jan 6 (KNN) State-owned Punjab & Sind Bank is set to unveil an instant loan scheme of up to Rs 25 lakh for the MSME sector this month, reinforcing its commitment to leveraging digital platforms to enhance credit delivery.

The move follows the successful launch of its digital home loan and vehicle loan schemes.

Speaking about the initiative, Punjab & Sind Bank Executive Director Ravi Mehra stated,“Our digital journey is transformative. The instant MSME loan scheme is another step to provide faster and more efficient services to our customers.”

Under the bank's existing offerings-PSB e-Apna Ghar and PSB e-Apna Vahan, introduced last month-applicants can receive in-principle approvals within 15 minutes.

These schemes employ a Straight Through Process (STP) powered by a pre-defined Business Rule Engine (BRE), ensuring seamless, automated processing without manual intervention.

The MSME scheme, which is in its final testing phase, will employ a similar STP model. Loans will be assessed based on cash flow analysis, digital account statements, and GST returns, making the process swift and accurate.

"With this approach, we can ensure loan approvals even on holidays, enhancing customer convenience while maintaining low default risks," Mehra added.

Additionally, the bank is set to digitise its Kisan Credit Card (KCC) renewal process next month, allowing farmers to secure loans up to Rs 2 lakh without collateral. A simple missed call or online application will suffice for instant renewal, provided criteria are met.

Further, the bank plans to introduce collateral-free loans under the Pradhan Mantri MUDRA Yojana (PMMY), offering up to Rs 50,000 through its digital platform.

These initiatives underscore Punjab & Sind Bank's commitment to streamlining credit access for diverse sectors, particularly MSMEs, farmers, and small entrepreneurs.

Mehra emphasised that these digital-first products aim to reduce manual intervention, making credit processes faster, transparent, and customer-friendly.

“Punjab & Sind Bank is dedicated to creating a more sustainable future by driving digital transformation and empowering underserved communities,” he said.

With these bold steps, the bank is poised to cement its position as a leader in innovative banking solutions.

(KNN Bureau)

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