PTI New Delhi

State-owned Punjab & Sind Bank plans to launch instant loan scheme up to Rs 25 lakh for the MSME sector during this month as part of its initiative to push credit through its digital platform.

As part of its transformative agenda, the bank has already introduced digital home loan and vehicle loan schemes under which in-principle approval to an application is given within 15 minutes.

"The journey from applying the loan to sanction, for both the segments i.e. PSB e-Apna Ghar and PSB e-Apna Vahan (launched last month), is based on Straight Through Process (STP) which runs on a pre-defined Business Rule Engine (BRE)," said Punjab & Sind Bank Executive Director Ravi Mehra.

This automated approach eliminates manual intervention at the processing and sanctioning stage, enhancing the speed, efficiency, and customer experience, he said.

After initial success on the retail side, he said, the bank has lined up similar product for MSME (Micro, Small & Medium Enterprises) borrowers up to the loan limit of Rs 25 lakh to begin with.

The product is almost ready and final checking of the system and processes are being done before the launch planned later this month, he said.