PSBs set to launch MSME credit model this month, reveals document

Initially, nine PSBs such as Bank of Baroda, Canara Bank, Bank of Maharashtra and others will allow loans only up to Rs 25 lakh. Bank of India will offer loans up to Rs 1 crore

Amid directions from the finance ministry, most public sector banks (PSBs) are ready to launch the credit risk assessment model for micro, small and medium enterprises (MSMEs), with a loan amount between Rs 25 lakh and Rs 5 crore to be assessed by the model for different banks, according to an internal government document reviewed by Business Standard.

 

Bank of India, Punjab & Sind Bank, Canara Bank and Indian Bank are planning to launch this model on November 25.

 

Six other PSBs, including Bank of Baroda (BoB), Union Bank of India, UCO Bank, Central Bank of India, Indian Overseas Bank