Soon, website for PSB loans will track repayments too
The platform was created with an aim to provide easy access to working capital loans from commercial banks to MSME borrowers with the help of an algorithm that processes eligibility for such loans and cuts turnaround time for lenders.
November 27, 2019 / 09:01 PM IST
The loan disbursement platform onlinepsbloans.com that provides quick sanctions for retail and MSME borrowers within 59 minutes is working on a module that will help banks track repayments too.
“We’re working with the banks to roll out a project where, throughout the lifecycle of the loan, we can digitally track it rather than manually doing it,” said Jinand Shah, CEO, Onlinepsbloans.
The platform was created a year ago with an aim to provide easy access to working capital loans from commercial banks to MSME borrowers with the help of an algorithm that processes eligibility for such loans and cuts the turnaround time for lenders.
As of now, the functions of the online portal is limited only up till the disbursement stage.
According to Shah, the portal receives Rs 100 crore worth of loan applications per day. While the average ticket size of these loans is Rs 20-30 lakhs, MSMEs can borrow up to Rs 5 crore from some lenders.
Shah added that the portal was working on a repayment module to be able to track the entire lifecycle of the loan. This will enable banks to make better credit decisions when the loans come up for renewals.
“We are trying to eliminate human intervention wherever possible,” Shah said.
While the portal was introduced to extend loans from state-run banks, some private lenders have also decided to use the platform. Going forward, the platform plans to extend Mudra loans too, Shah said.
In its report submitted in June, the expert committee on MSME recommended that loans sanctioned under Standup India and MUDRA should be included in the portal.
Also, banks need to ensure that all applications accorded in principal approval are disposed of within a period of 7-10 days. “Algorithms leading to initial in-principle sanction but final rejections by the banks’ need to be reviewed in a time bound manner,” the report said.