Home / Business and Economy / Banks Urged to Fix JanSamarth Portal's 43.2% Rejection Rate
Banks Urged to Fix JanSamarth Portal's 43.2% Rejection Rate
13 Jul
Summary
- JanSamarth portal has a 43.2% application rejection rate.
- Finance ministry directs banks to improve loan disbursal timelines.
- Incomplete documents and incorrect information cause most rejections.
The JanSamarth portal, a centralized platform for government-backed loans, is facing scrutiny due to a substantial 43.2% application rejection rate in FY26. The finance ministry has mandated public sector banks to integrate the portal with their lending management systems and accelerate loan disbursal processes.
This intervention aims to address factors contributing to unsuccessful applications, identified primarily as incomplete documentation, inaccurate information provided by applicants, and instances where applicants do not proceed after receiving in-principle approval. The ministry's directive emphasizes improving the portal's conversion rates.
In FY26, JanSamarth facilitated approximately 13.1 million loan sanctions, a significant increase from 4 million in FY25. The government has also expanded the portal's scope to include schemes like CGTMSE and ECLGS 5.0, and is integrating state-level schemes.
Experts suggest that while reducing processing time is important, enhancing the quality of loan applications is equally crucial. Business Correspondents are seen as vital in guiding applicants, verifying details, and increasing application success rates, especially in rural areas.
