Punjab & Sind Bank (PSB) plans to, by this month end, roll out a digital MSME loan product upto ₹25 lakh that will be purely cash-flow based, Swarup Kumar Saha, Managing Director & CEO has said.

“This is expected to be game changer for the bank as it would change perception that we are a digital friendly bank”, Saha told businessline here.

He highlighted that PSB had two months back rolled out digital e-car loan, digital e-home loan products based on QR code and missed call. Sanctions for vehicle loans can now be self generated by customers even on a holiday or a Sunday. PSB is doing video-kyc even on Sundays, it was noted.

Ravi Mehra, Executive Director, PSB said that a MSME customer has to just scan the QR code, give a missed call or go to bank website, and the journey will start . “The system itself will find your Income Tax Return, GST return and analyse your bank statement before sanctioning the loan in quick time”, Mehra said.

This is part of the bank’s effort towards introducing cash flow based lending for MSME customers and going forward, the effort would be improved further to lend on the basis of digital footprints, Mehra added.

Finance Minister Nirmala Sitharaman had in her last budget speech said that public sector banks would develop credit assessment digital tools to lend to MSMEs on the basis of their digital footprints. 

“In our e-home loan product in last two months, 48 per cent is through assisted journey. In e-vehicle loan it is 60 per cent through assisted journey. My vehicle loan book is seeing organic growth of 35 per cent. We hope this will pick up on a pan India basis”, Saha said.