Highlights of the Blog
- EASE 7.0 empowers PSU banks to accelerate MSME lending through faster credit access, digital onboarding, and simplified processes.
- Tailored financial solutions and advisory support under EASE 7.0 help MSMEs grow sustainably and improve financial literacy.
- Inclusive banking efforts for women-led and rural MSMEs support the broader vision of a Viksit Bharat by ensuring no entrepreneur is left behind.
India’s growth story is closely tied to the success of its Micro, Small, and Medium Enterprises (MSMEs). These businesses are the backbone of our economy, generating jobs, driving innovation, and contributing significantly to GDP.
As India moves steadily towards becoming a Viksit Bharat, the role of PSU (Public Sector Undertaking) banks becomes more crucial than ever - especially under the government’s flagship reform agenda, EASE 7.0.
Launched by the Department of Financial Services, EASE 7.0 (Enhanced Access and Service Excellence) aims to transform PSU banking and directly support national goals such as MSME empowerment and financial inclusion.
Action Point 1 (AP 1) of EASE 7.0 focuses on “MSME Support and Deepening Credit”, making it a top priority to bridge the financing gap and uplift small businesses.
In this blog, we’ll explore five practical ways PSU banks can accelerate MSME growth under EASE 7.0, contributing to the vision of a Viksit Bharat.
1. Faster and Easier Access to Credit
One of the key thrusts of EASE 7.0 is simplifying credit access for MSMEs. Many small businesses struggle to get loans due to a lack of collateral or complex documentation processes. Under AP 1, PSU banks are adopting digital-first approaches to change this.
For instance, banks are leveraging fintech tools for real-time credit appraisal, digital KYC, and automated risk assessment. This enables faster loan processing and approval, cutting down waiting time for business owners.
According to a Business Standard report (Sep 2022), PSU banks cleared ₹83,091 crore worth of digital MSME and retail loans in FY 2021–22, reflecting the growing capacity and confidence in digital lending under the earlier phases of EASE reforms. This foundation is now being accelerated under EASE 7.0, focusing even more on proactive and paperless credit delivery.
By reducing friction in lending, EASE 7.0 enables PSU banks to provide timely credit to MSMEs, helping them expand operations, buy equipment, or manage working capital. This directly supports India’s mission of building a Viksit Bharat, where no viable business is left behind.
2. Strengthening Digital Onboarding and Monitoring
Under EASE 7.0, PSU banks are focusing on creating end-to-end digital journeys for MSMEs. This means that from loan application to disbursal and post-loan services, everything can be handled online.
Action Point 1 encourages the use of tools like the PSBLoansin59minutes portal and Account Aggregator Framework to speed up MSME onboarding. These platforms allow businesses to apply for loans without multiple visits to the bank branch.
Additionally, PSU banks are improving their post-disbursal monitoring systems using AI and analytics. This ensures that loans are used effectively, repayments are on track, and the MSME’s overall financial health is monitored.
With such technology-driven efforts under EASE 7.0, PSU banks are making MSME banking easier, smarter, and more inclusive - laying down a strong financial base for a Viksit Bharat.
Fun Fact: MSMEs can now get loan approvals in under 59 minutes through platforms like PSBLoansin59minutes - faster than cooking dinner! Thanks to EASE 7.0, digital onboarding is making banking smart and swift for a Viksit Bharat.
3. Customized Financial Products for MSMEs
Not all MSMEs are the same. A manufacturing unit has different needs compared to a service startup or a rural artisan. That’s why EASE 7.0 encourages PSU banks to design tailored financial products that match the unique requirements of diverse MSME segments.
Action Point 1 promotes segmented lending strategies based on industry, location, and business stage (startup, growth, mature). PSU banks are now offering sector-specific loans, collateral-free lending, and flexible repayment schedules.
By offering personalized products instead of a one-size-fits-all approach, EASE 7.0 makes it easier for MSMEs to grow sustainably. These targeted solutions bring us closer to the dream of a Viksit Bharat, where every entrepreneur gets a fair chance to succeed.
4. Handholding and Advisory Support
Often, what small businesses need isn’t just money - it’s guidance. Recognizing this, EASE 7.0 emphasizes the importance of non-financial support for MSMEs. Through Action Point 1, PSU banks are encouraged to act as partners, not just lenders.
This includes:
• Conducting financial literacy programs
• Offering business mentoring
• Providing advisory support on compliance, taxation, and digitization
Such support helps MSMEs manage their finances better, improve creditworthiness, and become more competitive. This approach transforms PSU banks from mere service providers into growth enablers—aligning perfectly with the spirit of a Viksit Bharat.
These insights highlight how vital advisory and handholding services are in empowering MSMEs and building a resilient economy under EASE 7.0 and Viksit Bharat.
5. Promoting Credit Inclusion for Women and Rural MSMEs
To truly build a Viksit Bharat, we must ensure that MSME growth is inclusive. EASE 7.0, through AP 1, pushes PSU banks to deepen credit penetration in underserved segments - particularly women-led enterprises and rural MSMEs.
Banks are now actively tracking disbursements by gender and geography. Special schemes with lower interest rates, relaxed norms, and focused outreach programs are being launched to uplift these businesses.
For example, many PSU banks are partnering with Self-Help Groups (SHGs) and Farmer Producer Organizations (FPOs) to bring formal finance to the last mile. Such efforts create economic opportunities where they’re needed most, ensuring the gains of development reach every corner of India.
This is the essence of EASE 7.0 - not just better banking, but better outcomes for all. And it’s central to the idea of a Viksit Bharat where growth is balanced, inclusive, and sustainable.
Fun Fact: Women-led MSMEs make up nearly 20% of MSME jobs in India! Under EASE 7.0, PSU banks are boosting credit access for women and rural entrepreneurs driving inclusive growth for a Viksit Bharat.
Conclusion
MSMEs are more than just small businesses- they are the dreams and livelihoods of millions of Indians. With the right support from PSU banks, powered by reforms under EASE 7.0, these enterprises can truly flourish.
By focusing on faster credit, digital access, tailored products, advisory services, and inclusive lending, PSU banks are not only helping MSMEs grow but also building the foundation for a stronger, self-reliant India.
As we look toward 2047 - the year we aim to become a fully Viksit Bharat—initiatives like EASE 7.0 will play a defining role. Let us continue supporting our MSMEs with smart banking, compassionate policies, and unwavering intent.
After all, when MSMEs rise, India rises.
Frequently Asked Questions
1. What is the objective of Action Point 1 in EASE 7.0 for MSMEs?
Action Point 1 (AP 1) of EASE 7.0 focuses on “MSME Support and Deepening Credit.” Its objective is to simplify access to finance, enhance digital onboarding, provide customized financial products, and ensure inclusive outreach for MSMEs, especially those led by women and in rural areas.
2. How do PSU banks use technology to speed up MSME loan approvals?
PSU banks are leveraging fintech tools like digital KYC, real-time credit scoring, and platforms like PSBLoansin59minutes to enable quick, paperless loan approvals. These tools reduce manual processing, cut down wait times, and improve credit access for small businesses.
3. Why are customized financial products important for MSMEs?
MSMEs vary widely in size, sector, and maturity stage. Tailored products ensure that businesses receive financing suited to their unique needs - be it flexible repayments for seasonal businesses or sector-specific lending for manufacturing and services. EASE 7.0 promotes these personalized offerings to support sustainable MSME growth.
4. What kind of non-financial support do PSU banks offer MSMEs under EASE 7.0?
Beyond loans, PSU banks provide advisory services such as financial literacy workshops, tax and compliance guidance, digitization support, and mentorship. These initiatives help MSMEs become more financially aware, improve their creditworthiness, and scale responsibly.
5. How does EASE 7.0 promote credit inclusion for women and rural MSMEs?
EASE 7.0 encourages PSU banks to actively track and expand lending to women entrepreneurs and rural MSMEs. This includes launching gender-sensitive schemes, collaborating with SHGs and FPOs, and offering special interest rates or simplified application processes to reduce barriers for underserved segments.
