Banks agree to time frame for SME loan disposal

69 banks have voluntarily committed to specific time-frame for disposal of loan applications of micro and small enterprises said in statement by the Banking Codes and Standards Board of India.

Banks have committed to clear SME loans for up to Rs 2 lakh in two weeks, and loan up to Rs 5 lakh within four weeks. In a statement issued, the Banking Codes and Standards Board of India said that 69 banks have voluntarily committed to specific time-frame for disposal of loan applications of micro and small enterprises. These banks have also committed to make available, free of cost, simple standardised, easy-to-understand application form for loans together with a checklist of requirements.