The ministry of finance is likely to consider raising the cap on the 59-minute loan scheme to Rs 3-5 crore from the present Rs 1 crore. According to an IANS report citing government sources, this cap will be raised in a gradual manner. The 59-minute loan scheme was launched late in 2018 with the intention to help micro, small and medium scale enterprises (MSMEs) as a part of PM Modi's 12-point plan for the sector.
The scheme received a positive response and public sector banks associated with this portal now intend to hike the credit limit. These hassle-free loan scheme without collateral is a strategic initiative of a consortium of five public sector banks, led by the SIBDI (Small Industries Development Bank of India). The five government banks include the State Bank of India (SBI), Bank of Baroda, Punjab National Bank (PNB), Vijaya Bank and Indian Bank.
The news report said that the government is looking at the suggestions made by the banks to increase the loan cap and may gradually increase it to Rs 2 crore.
Earlier this year, PNB told PTI that it had sanctioned loans worth Rs 689 crore to over 1,600 MSMEs till the end of February through the 59 minutes loan portal.