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PSU banks to introduce home, auto loans on 'PSB Loans in 59 Minutes' portal

PSBs are going to housing and auto loans, on 'psbloansin59minutes' portal with a view to expand their retail loan business.

PSU banks to introduce home, auto loans on 'PSB Loans in 59 Minutes' portal

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Published : Aug 20, 2019, 6:17 PM IST

New Delhi: Public sector banks are gearing up to introduce retail products, including housing and auto loans, on 'psbloansin59minutes' portal with a view to expand their retail loan business.

Currently, the portal gives in-principle approval for loans of up to Rs 1 crore to micro, small and medium enterprises (MSMEs) in just 59 minutes or less than an hour.

However, some of the banks including State Bank of India, Union Bank of India, and Corporation Bank decided to extend in-principle approval to loans of up to Rs 5 crore through the portal.

Bank of India is now planning to onboard some of the retail products on the portal for easier access to loan products.

The bank is working on this and home and auto loan will be onboarded on the portal going forward, Bank of India General Manager Salil Kumar Swain told PTI.

Another state-owned lender Indian Overseas Bank (IOB) also plans to offer retail loan products on the portal.

IOB has been actively participating on the portal for sanction of MSME loans and the bank has achieved a remarkable improvement in sanctioning of loans, as the number of cases and amount sanctioned shows a manifold increase since its inception, the bank said in a statement last week.

Read more:Resolve stressed assets on time in your interest: RBI to banks

"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," it said.

The platform has helped in expediting loan disbursement and bringing ease in banking process by saving time for both bankers and customers, a senior official of another public sector bank said.

If other products are introduced on the platform, it will help expand the retail business of the bank and also bring down the transaction cost, the officer said.

The platform has helped reduce turnaround time for loan processes in such a way that MSMEs get an eligibility letter and 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.

Touted as country's largest online lending platform, the portal was launched by Prime Minister Narendra Modi in November 2018 with an aim to make credit access and banking for MSMEs transparent and hassle-free.

The portal sanctioned loans worth over Rs 35,000 crore in less than four months from its launch.

As on March 31, 2019, more than 50,706 proposals had got in-principle approval and 27,893 proposals had been sanctioned.

New Delhi: Public sector banks are gearing up to introduce retail products, including housing and auto loans, on 'psbloansin59minutes' portal with a view to expand their retail loan business.

Currently, the portal gives in-principle approval for loans of up to Rs 1 crore to micro, small and medium enterprises (MSMEs) in just 59 minutes or less than an hour.

However, some of the banks including State Bank of India, Union Bank of India, and Corporation Bank decided to extend in-principle approval to loans of up to Rs 5 crore through the portal.

Bank of India is now planning to onboard some of the retail products on the portal for easier access to loan products.

The bank is working on this and home and auto loan will be onboarded on the portal going forward, Bank of India General Manager Salil Kumar Swain told PTI.

Another state-owned lender Indian Overseas Bank (IOB) also plans to offer retail loan products on the portal.

IOB has been actively participating on the portal for sanction of MSME loans and the bank has achieved a remarkable improvement in sanctioning of loans, as the number of cases and amount sanctioned shows a manifold increase since its inception, the bank said in a statement last week.

Read more:Resolve stressed assets on time in your interest: RBI to banks

"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," it said.

The platform has helped in expediting loan disbursement and bringing ease in banking process by saving time for both bankers and customers, a senior official of another public sector bank said.

If other products are introduced on the platform, it will help expand the retail business of the bank and also bring down the transaction cost, the officer said.

The platform has helped reduce turnaround time for loan processes in such a way that MSMEs get an eligibility letter and 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.

Touted as country's largest online lending platform, the portal was launched by Prime Minister Narendra Modi in November 2018 with an aim to make credit access and banking for MSMEs transparent and hassle-free.

The portal sanctioned loans worth over Rs 35,000 crore in less than four months from its launch.

As on March 31, 2019, more than 50,706 proposals had got in-principle approval and 27,893 proposals had been sanctioned.

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Online food platforms to redesign schemes to check deep discounts: NRAI
New Delhi, Aug 20 (PTI) The National Restaurant Association of India (NRAI) on Tuesday said food aggregators have agreed to redesign their schemes to rein in deep discounts offered to customers and asserted that discount is a privilege not a right.
The NRAI stressed on the need to "detox" the restaurant-customer ecosystem from the addiction of deep discounts that has crippled the industry.
The association, which represents leading restaurant chains, independent eateries, bars and diners, was in talks with online food delivery platforms like Zomato and Swiggy for the past two days to resolve the confrontation over discounting schemes, dine-in programmes and table reservation schemes.
Launching a logging out campaign in protest against dine-in schemes, around 1,200 restaurants in major cities had reportedly delisted from the dine-in programmes of food aggregators, saying that deep discounting offered by the platforms was unsustainable and was hurting their business.
"Over the past two days, NRAI held extensive meetings with all restaurant aggregators and we were bemused to learn that the aggregators were promoting deep-discounts to stay competitive amongst each other," the association said in a statement.
What hurts the most is that these deep-discounts are funded by the restaurant industry and not the aggregators, it added.
"Moreover, as opposed to general perception, restaurants do not get any share of the proceeds that aggregators generate from guests as subscription fees," the statement said.
NRAI and aggregators were in agreement that technology is the backbone to enable restaurant discovery and a friction-less experience to the guests. However, guests should not be lured by devaluing the core product at a restaurant, it added.
"Therefore it was decided, that all aggregators will rejig their features which will allow the restaurant-customer ecosystem to detox from addiction of deep-discounts that has crippled the industry," the statement said.
The idea of scoring a discount should make guests feel special and not give them a sense of beating the system. Discount is a privilege and not a right, it added.
Discounting works well in the retail space, because brands can limit supply or at least make it look like supply is limited, and therefore create a sense of urgency in the eyes of the consumer, the statement said.
"Unlike retail, where end of season sale is to clear leftovers, a restaurant doesn't serve leftovers at a discounted price. It's all prepared fresh and made to order," NRAI said, highlighting the difference between the two sectors.
When asked about the future steps that the association plans to take on the issue, NRAI said: "When we hear back from all the aggregators on the changes/tweaks they will do, we will review if the objective of curbing deep discounting has been achieved." PTI AKT
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