Punjab & Sind Bank Launches Instant MSME Loan Scheme

Punjab & Sind Bank is launching an instant loan scheme for MSMEs this month, offering loans of up to Rs 25 lakh via its digital platform. This initiative follows the bank's successful digital home and vehicle loan schemes, providing approvals in just 15 minutes through an automated Straight Through Process (STP). The loan assessment will utilize applicants' cash flow and digital footprints, such as GST returns, ensuring efficiency and low default risks. Additionally, the bank plans to introduce collateral-free loans under the Pradhan Mantri MUDRA Yojana and digital renewal of Kisan Credit Cards. This move aims to enhance credit access for MSMEs and contribute to their growth, particularly in the face of ongoing financial challenges. The broader context highlights a significant $400 billion credit gap faced by India's 63 million MSMEs, emphasizing the need for innovative financial solutions.