Under the ‘59 minutes’ loan scheme launched by the government, the Public Sector Banks(PSB) have approved more than 1.12 lakh loan applications of Micro, Small and Medium Enterprises (MSMEs) totalling Rs 37,412 crore.
The scheme was launched by Prime Minister Narendra Modi on November 2. It enables the MSMEs registered under the GST to be eligible for a loan up to Rs 1 crore in just 59 minutes through the online portal named ‘psbloansin59minutes.com’.
Minister of State for Finance Shiv Pratap Shukla told the Lok Sabha during the Parliament session that till December 25, loans worth Rs 14,088.32 crore in respect to 40,669 cases have been sanctioned.
MSMEs generate around 10 crore job opportunities with the 4.6 crore units spread across the country. They contribute to 38% of India’s GDP. Also, their share in overall exports is 40% and they contribute to 45% of the manufacturing output.
MSMEs are a crucial factor in the nation’s economy because they not only provide a wide range of services but also engage in manufacturing of over 6000 products which range from traditional to hi-tech items.
Shukla also added that the central government and the Reserve Bank of India have taken several important steps to ensure the easy access of credit to the MSME sector.