The government recently launched a 'Support and Outreach Initiative' for micro, small and medium enterprises. As part of this programme, 12 key initiatives have been launched. Among them, what stands out, without an iota of doubt, is the launch of a 59-minute loan portal for MSMEs. This dedicated digital platform seeks to cut the lengthy and cumbersome loan approval process -- one of the biggest challenges facing our MSMEs.

So, how to get loans under this facility? First, an applicant will be required to visit the official website, www.psbloansin59minutes.com and there complete the sign up process. The next levels will include some simple steps like answering some basic questions and giving GST details; uploading bank statements (or log in with your net-banking credentials) and mentioning directors' details; citing the purpose of loan; and finally selecting a bank and paying a convenience fee.

The registration does not involve any payment, but if an applicant's proposal matches the products of banks and the applicant wants to receive an approval in principle, he will be required to make a nominal payment of Rs 1,000 plus applicable taxes. The loan amount will be between Rs 10 lakh and Rs 1 crore and the rate of interest (RoI) starts from 8%. After the approval in principle of the application, the loan amount will be disbursed in 7-8 working days. For further details, you may check the FAQ section of the official website.

Needless to say, the 'loans in 59 minutes' promise sounds great. The MSME sector, which contributes 30% to India's GDP, were hit hard by the twin shocks of demonetisation and implementation of the Goods and Services Tax. Additionally, MSMEs have to bear the brunt of the ongoing bank NPA crisis. More recently, fall in amount of lending by non-banking financial companies in the aftermath of the IL&FS crisis has also affected them negatively. In this background, it seems need of the hour to pump extra credit into the sector.

I invite your opinions.