Online PSB Loans Limited and Kotak Mahindra Bank (Kotak) today announced that Kotak is the first private sector bank to join the platform – psbloansin59minutes.com. Kotak will offer loans up to Rs 1 cr to micro, small & medium enterprises (MSME) in India through this platform.
MSME loan aspirants will now get the option to avail of ‘in-principle’ loan approvals in just 59 minutes from both public sector and private sector banks (presently only Kotak) through this platform.
“We are delighted to join psbloansin59minutes.com and participate in the Government of India’s initiative to facilitate easier access to credit to micro, small & medium enterprises. Small business owners require quick and hassle-free access to loans to grow or diversify their business. At Kotak, we offer a range of customised financing options with flexible repayment options. We are also seeing a steady rise in customers availing loans through digital channels,” Ambuj Chandna, Senior Executive Vice President & Head – Consumer Assets, Kotak Mahindra Bank said in a statement.
The PSB Loans in 59 Minutes initiative aims at automation of various processes in loan appraisals in such a way that MSMEs get an eligibility letter and an in-principle approval in less than 60 minutes and can choose the bank of their choice.
Manoj Mittal, DMD, SIDBI said that the on-boarding of Kotak Mahindra Bank is an important milestone for the portal. “In addition to making a wide choice of credit products from Public Sector Banks available to MSMEs registering on the platform, they now also get an option to access private sector lenders as well. This is true democratisation of finance for the MSME segment,” he said.