Chennai-based public sector lender Indian Overseas Bank (IOB) is in the process of extending in-principle sanction for loans up to Rs 5 crore for MSMEs through the online portal psbloansin59minutes.com, as the scheme has drawn healthy response from the borrowers. IOB has been actively participating on www.psbloansin59minutes.com, an online portal for sanction of MSME loans. The 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.
"By increasing the limit to Rs 5 crore 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," IOB said in a statement.
In due course of time, the bank will also offer retail products (housing and personal loans) under this platform, anticipating demand from the borrowers, as the bank reduced its MCLR by 10 to 15 basis points (bps) for different tenors, effective August 10, post the repo rate reduction by the RBI. The 59-minute loan scheme was launched last year for the benefit of MSMEs. It is an integral part of the 12-point action plan for MSMEs which was announced in November 2018.
To further improve its rate of transmission, the bank is in the process of linking retail loan products with external benchmark repo rate.