Mumbai: To meet the growing need of micro and small enterprises, five public sector banks have decided to extend in-principle approval of loan up to 5 crore under the "PSB Loans in 59 Minutes" scheme.

The loans will be approved by State Bank of India, Union Bank of India, Oriental Bank of Commerce, Corporation Bank, and Andhra Bank on the

According to the latest figures, more than 50,706 proposals have got in-principle approvals and 27,893 proposals have been sanctioned as on 31 March 2019.

The portal was launched by the Narendra Modi government in November to provide loans up to 1 crore to micro, small and medium enterprises (MSMEs) in just 59 minutes or less than an hour.

The platform has helped reduce turnaround time for loan processes in such a way that MSMEs get an eligibility letter and an in-principle approval in 59 minutes and can choose the bank of their choice. After the approval letter is received, the loan is expected to be disbursed in 7-8 working days. The value of the contactless business loans offered range from 1 lakh to 5 crore. The rate of interest starts at 8.5%.

“The highlight of operating through platform is, it quickens sanction time and increases transparency. This is a part of our ongoing journey towards uplifting the sunrise sector of the country. With the increase in the loan limit to 5 crore we are sure that this will broaden the playing field for the MSME sector," said Devi Shankar Mishra, CGM,MSME, SBI.