How will the JanSamarth portal help MSMEs get loans faster?

The portal standardizes digital processes, allowing banks to instantly access borrower data like credit scores and tax information, speeding up loan approvals.

What is the loan limit for the new digital process for MSMEs?

The new standardized digital process applies to loans up to ₹1 crore for micro and small businesses.

Which government portal is used for digital MSME loan sanctions?

The JanSamarth portal is being used to route the entire lending process for government-sponsored credit-linked schemes.

Home / Business and Economy / Govt Digitizes ₹1 Crore MSME Loans via JanSamarth Portal

Govt Digitizes ₹1 Crore MSME Loans via JanSamarth Portal

16 Jan

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Summary

Government aims to expedite credit delivery to small businesses.
JanSamarth portal will standardize digital loan sanctioning up to ₹1 crore.
Digital loans and cash-flow based underwriting are government priorities.

Govt Digitizes ₹1 Crore MSME Loans via JanSamarth Portal

State-owned lenders are set to adopt a standardized digital process for sanctioning loans up to ₹1 crore, targeting micro and small businesses. The initiative leverages the JanSamarth portal, a platform for government-linked credit schemes, to enable banks to automatically retrieve borrower information such as credit scores and tax data. This integration is expected to significantly speed up loan appraisals and approvals, consequently reducing the rate at which applications are rejected.

This move supports the government's ongoing agenda to bolster MSMEs by making credit more accessible. The focus is on digital lending and employing robust cash-flow-based underwriting models. Banks are already moving towards common application formats for loans under ₹1 crore, and the JanSamarth portal will further allow borrowers to compare offers from various banks, with stages of their applications tracked transparently.