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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.
www.psbloansin59minutes.com – is a “strategic” initiative of SIBDI-led PSB consortium incubated under the aegis of Department of Financial Services (DFS), Ministry of Finance. The portal will reduce the turnaround time from 20-25 days to 59 minutes. Subsequent to the principle approval, the loan will be disbursed in 7-8 working days, a Ministry of Finance released.
For Existing Businesses: Borrower should be GST, IT compliant and must have Six Months Bank Statement.
Please note that, your loan eligibility is determined by your:
An Existing business wishing to make an application on the www.psbloansin59minutes.com, requires the following:
Majority stake of SIDBI & big 5 PSBs- SBI, Bank of Baroda, PNB, Vijaya and Indian Bank.
For registration purpose, the borrower doesn’t need to make any payment. Any borrower whose proposal matches with the products of lenders and wants to receive an In-Principle approval will be required to make a nominal payment of Rs. 1,000 + Applicable Taxes.
Through the web portal www.psbloansin59minutes.com, a borrower can get in-principle approval in just 59 minutes from anywhere at any time. Post in-principle approval, the time taken for loan disbursement depends on the information and documentation provided by you on the portal and banks. The more accurate the data, the sooner you will get disbursal. Generally, post in-principle approval, the loan is expected to be sanction/disbursed in 7-8 working days.
Your application might get rejected due to one or more of below mentioned reasons:
Even if the borrower does not have collateral security, he/she can avail business loan through www.psbloansin59minutes.com under CGTMSE scheme.
The platform requires submission of borrower’s data and runs analysis on the same in real time basis. The details are matched with Various Criteria set by all Lending Banks on the Platform. Borrower will be shown a List of Banks with whom the Application got matched with and from those Banks the Borrower can select his/ her preferred lender.
Step 1: Go to official website (www.psbloansin59minutes.com)
Then click on the Register option from the top right corner. A sign-up form will appear. Enter the individual name, email id and mobile number. Verify the mobile number by entering the one time password provided by SMS. Then check the “I agree” option and click on Proceed option.
Step 2: Basic Questions
Then fill all the required fields with the asked details about GST registration of the company, IT returns and other information about your business and proceed. After ticking all the boxes, select “I am a registered MSME and I agree with the above selected point’ and click ‘Proceed’.
Step 3: GST details with OTP
In this step you need to fill your GST Number, GST username and choose a password containing special characters and numerical and click SUBMIT.
Step 4: Upload GST return
Now you need to upload the required documents such as GST returns in XML format IT returns details, PAN card info and the date on which your company was incorporated and click SUBMIT.
Step 5: Upload Bank statements
Upload the scanned copy of your bank statements. Or there you will also get the option to log in to your internet banking account to directly send details via the portal itself.
Step 6: Directors details and purpose of Loan
On the next page, there will be various fields asking about your company details like address, information about properties and details about the directors of the enterprise. Fill the company’s address and then proprietor’s details.
Step 7: Select the Bank
Among the given list of banks, select the bank through which you want your loan amount to be processed. Just choose your preferred bank and click on the Proceed button next to the bank listings.
Step 8: Convenience fee
Now you need to pay the convenience fee of Rs 1,000 plus taxes.
Step 9: In- principle Approval
Now you can see a congratulations window with an In- principle approval with interest rate, processing fee, branch of the bank and much more which you can even save as a PDF.