CHENNAI:
The 59-minute loan scheme was launched last year for the benefit of MSME. It is an integral part of the 12-point action plan for MSMEs which was announced in November 2018.
Extending hassle-free loans to MSME units which are without any collateral has been a successful move. IOB has been actively participating on www.psbloansin59minutes.com , an online portal for sanction of MSME loans. Bank had achieved a remarkable improvement in sanctioning of loans, as the number of cases and amount sanctioned shows a manifold increase since its inception.
As the scheme has drawn healthy response from the borrowers, bank is in the process of extending in-principle sanction for loans up to Rs.5 crores under MSME. In due course of time, bank will also offer retail products (housing loan & personal loan) under this platform, anticipating the demand from the borrowers, as the bank reduced its MCLR by 10 to 15 basis points (bps) for different tenors, effective from August 10th followed by RBI repo rate reduction.
To further improve our rate of transmission, bank is in the process of linking retail loan products with external benchmark repo rate. By increasing the limit to Rs.5 crores for MSME segment and extending sanction to retail and personal loan segments and by linking retail products with repo rate, we are confident that there will be substantial increase in the MSME & Retail segment of the bank and also would benefit the borrowers.
