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On November 2, Prime Minister Narendra Modi made a slew of announcements aimed at reviving India’s faltering micro, small and medium enterprises. One of these was about a dedicated digital platform – www.psbloansin59minutes.com – to enable them to access loans of upto Rs 1 crore in just 59 minutes.
Unlike their larger counterparts, India’s smaller companies have long faced difficulty in accessing bank loans. The psbloansin59minutes website was presented as the solution. Once a firm uploads key information such as tax returns and ownership details, proprietary algorithms on the website appraise the application, determine the loan amount that can be given and then connect the applicant to a bank branch – all in under 59 minutes.
The other measures announced today included an increase in the share of small and medium industries in government procurement from 20 to 25 per cent. He also announced a 2 per cent interest relief on loans up to Rs. 1 crore for small businesses that file GST (Goods and Services Tax) returns.
The document requirements mentioned above are indicative and Bank reserves the right to call upon additional documents at its discretion based on credit, risk, compliance, loan and other applicable policies/guidelines of the Bank.
According to the scheme, all applicants have to pay a fee of Rs 1,180 on application, as well as 0.35 percent of the loan as processing fees, for being considered eligible.
The minimum loan amount that can be applied for, via this portal is 1 Lakh, and the maximum amount is set to 1 Crore. All MSME will get In principle approval of business loans from SIDBI and 5 Public Sector Banks (SBI, PNB, Bank of Baroda, Vijaya Bank and Indian Bank).
There is no fixed interest mentioned. However, Interest rates will start from 8%. It will depend on business to business and the credit rating. It can be known during the final verification of submitted details by the selected bank.
A Company that falls under Micro, small or medium scale will be eligible for applying through this scheme.