Loan in 59 Minutes: Indian Bank has Rejected 77% of Applications, SBI 48%
The much-hyped loan in 59minutes scheme announced by prime minister Narendra Modi on Diwali last year has been found providing loans for less than 50% of applicants, reveals replies received under the Right to Information (RTI) Act. In fact, Indian Bank has rejected as many as 77% of applications that had received in-principle approval from the psbloansin59minutes.com portal. Even State Bank of India (SBI), the largest State-run lender, has rejected as many as 48% applications it received from the portal specifically set up for fast processing of applications and giving in-principle approvals.
According to information received from Allahabad Bank, Andhra Bank, Bank of Baroda, Bank of Maharashtra, Canara Bank, Corporation Bank, Indian Bank, Indian Overseas Bank, IDBI Bank, Oriental Bank of Commerce, Punjab and Sind Bank, Punjab National Bank, SBI, Syndicate Bank, UCO Bank, and United Bank of India, these lenders received 45,161 applications from the 59minute loan portal. Out of these, banks granted loans to 21,584 borrowers or 48% borrowers.
Total loans sanctioned by these banks so far under the scheme is Rs6,606.34 crore. Considering the total number of borrowers, who were granted the loan, the average ticket size of the loan comes to Rs30.6 lakh.
From the borrowers perspective, Canara Bank seems to be a good bet to get the loan. Canara Bank received 2,134 applications out of which it sanctioned loan to 1,518 borrowers or 71% of the applicants.
On the other hand, Indian Bank turned out to be more cautious and had rejected 77% of applications. As per the RTI reply, Indian Bank received 1,429 applications, out of which it granted loan to just 23% or 335 borrowers.