India Banks gear up their machinery to approve micro, small and medium enterprises (MSME) projects within 7-10 days and sanction loans as soon as possible.
Speaking on the occasion of MSME entrepreneurs here on Wednesday, Indian Bank Chairman and Managing Director M.S. Sundara Rajan said, “It is a competitive world and today everyone works under just-in-time concept. We should look at the project and the beneficiary rather than their balance sheets. Timely sanction of funds is more important than the interest rate.”
At present banks are having time-bound loan scheme in place for SSI. It takes around 2-9 weeks to sanction loans ranging from Rs. 25,000 to 5 lakh.
The Chairman asked the officials to clear the loan applications as soon as possible and also assured entrepreneurs that their grievances would be looked into within 48 hours of receipt of complaint.
Stating that the bank was able to come out of the trouble mainly due to its customers, he said: “I don’t want my customers to desert Indian Bank because they failed to get credit. If they do, I will punish myself by skipping lunch for a day. I am strict about it and have informed my officials in this regard.”
The Common Processing Centre was set up on a pilot basis in Chennai for sanctioning of the loans for MSMEs has proved to be a great success. Currently bank is in the process of replicating it through the length and breadth of the country.