MSME Sector has made an immense contribution to boosting India’s economy, the reason why several steps have been taken by the government and banking institutions towards the advancement of micro, small and medium enterprises, commonly known as the MSME sector. To achieve this, the most significant initiative taken by the government is to increase investment in the MSME sector by providing easy loans to entrepreneurs and businesses. Various loan schemes have been introduced by the government, different banks and non-banking financing institutions however, the easiest way to procure MSME loan is through the ‘MSME loan in 59 minutes’ scheme.
What is MSME Loan in 59 minutes?
As the name suggests, MSME loan in 59 minutes schemes allows loan processing and borrowing of a loan in less than 59 minutes. This has set a new benchmark in loan processing as approval for loans for micro, small and medium enterprises can now be obtained within an hour rather than a few days.
MSME Loan in 59 minutes online portal
The online portal for MSME loan in 59 minutes is psbloansin59minutes.com. This portal has been set up by an Act of parliament under the Department of Financial Services. It is an online marketplace that caters to the financial aspirations of businesses and individuals in quick and easy ways. This platform currently serves more than 25 public and private sector banks and non-banking financial institutions. psbloansin59minutes.com provides business loans i.e., terms loans and working capital loans amounting to INR 1 lakh to 5 Crore. This one of a kind platform is driven by micro-services which ensures quick in-principle loan approval and provides own niche excellence along with integrating multiple service providers. The portal integrates advanced technologies to automate and digitize the lending process for both borrowers and bankers by allowing loan approval without visiting the bank. psbloansin59minutes.com is an exclusive platform that has bankers interface and covers branch level integrations. An easy to use the portal, it lends finances to borrowers with the help of multiple technology interventions.
Process for Application of MSME loan In 59 Minutes
The process for application of MSME loan in 59 minutes on the online platform includes the following steps.
1. The first step is to open the website of the online platform for MSME loan in 59 minutes www.psbloansin59minutes.com.
2. The next requires registration on the platform using the name, email id and phone number.
3. After the potential borrower is registered, he can select his requirement for funds.
4. Then the borrower must select ‘Business loan’.
5. Once the funding requirement is selected, the borrower can requisite details and avail business loans by in-principle approval in less than 59 minutes.
There is no registration fee for registering on the platform but the borrower has to pay Rs. 1000 as a convenience fee for loan-approval.
Rate of Interest
Under MSME loan in 59 minutes scheme, businesses can borrow loans amounting to value between Rs. 1 lakh and 5 Crore on an interest rate of 8.5% onwards.
Eligibility Criteria For MSME Loan in 59 Minutes
Eligibility for obtaining an MSME loan in 59 minutes is mainly determined by 4 factors, namely.
1. The income of the borrower- The borrower is required to upload the last three years' income tax returns which include the latest year’s ITR.
2. Returning capacity
3. Existing credit facilities- this requires bank statements for the past 6 months
4. Any other factors set by lenders.
Required Documents For MSME Loan in 59 Minutes
The borrower has to upload the following documents required for loan processing:
1. GST details.
• For single GST registration, the borrower must provide GSTIN, GST username, and OTP.
• In the case of multiple GST registrations, the borrower needs to submit GSTIN, GST username and OTP for each registration. One registration must be assigned as primary.
• If the business is not registered with GST, the borrower can provide details of business and sales.
2. Income Tax details.
• For term loan, latest ITR (3, 5, 6 as applicable) needs to be uploaded in XML format and 3 years ITR is mandatory.
• For working capital loan, the latest ITR (3, 5, 6 as applicable) in XML and ITR 4 in XML/PDF format shall be uploaded and a minimum 1-year ITR is required.
3. The borrower should upload bank statements for the last 6 months in PDF format.
4. To avail the loan, details of Directors/Partners/Proprietor of the business is to be submitted.
5. The borrower also needs to submit all the relevant details related to the required loan.
Advantages of MSME loans in 59 minutes
MSME loans under 59 minutes have several benefits in comparison to other MSME loan-related schemes.
1. Quick loan approval- One of the major benefits of this scheme is that MSMEs or businesses can acquire loans easily and quickly within 59 minutes. The loan approval process does not take place 20-25 days. Moreover, the borrower can avail this loan facility at home or in his office and does not have to visit the bank.
2. Low rate of interest- The rate of interest for MSME loan under 59 minutes is 8.50% onwards which is relatively less in comparison to other loan-related schemes.
3. Minimal Documentation- the borrower does not require submitting a lot of documents to get the MSME loan approved.
4. Advanced Technology- psbloansin59minutes.com, the online portal for MSME loans under 59 minutes uses advanced technology for loan processing. It integrates multiple service-providers or banks to digitize the lending process and make it simpler. The borrower can avail services of multiple banks and government credit schemes on a single platform.
5. No collateral- Another benefit of MSME loans under 59 minutes is that the borrower does not have to pay a collateral fee if he avails the loan under the Government’s Credit Guarantee Funds Trust for Micro and Small Enterprises (CGFTMSE) scheme.
MSME loan under 59 minutes scheme has proved to be a great initiative to boost the MSME sector by advancing simpler, quicker and hassle-free loans to businesses and entrepreneurs. It provides several benefits to the borrowers and the loan is advanced at a comparatively low rate of interest than other banking institutions.
Author:
Leave a Comment
Previous Comments