59 Minutes Loans

59 Minutes Loans

 We have exciting news for the MSME (medium, small and micro enterprises) sector in India – get loans up to Rs. 1 crore in 59 minutes! The Prime Minister of India, Narendra Modi, has announced a new and dynamic ‘Support and Outreach’ initiative for the MSME sector, which comprises relaxed labor laws, smoother compliance with environmental laws and easy access to credit. In a bid to perk up this huge job-generator sector and to grant them easy access to credit, the Indian Government has promised that loans of up to Rs.1 crore will be sanctioned within an hour – in 59 minutes, to be precise.

This pleasant surprise was Prime Minister Modi’s Diwali Gift to the MSMEs. The Indian Government, on 2nd November 2018, announced this outreach programme and launched this dedicated website for MSME borrowers, which offers automated and contact-less processing of business loans from Rs.10 lakh to Rs.1 crore in 59 minutes. The interest rate starts at 8% per annum. Moreover, collateral coverage is not compulsory.

What are the Key Features of this Scheme?

Here are the highlights of this new loan disbursal scheme:

  • MSMEs can apply for loans from SIDBI (Small Industries Development Bank of India) and other partner banks through the Indian government’s new 59-minute loan portal.
  • MSMEs can connect with these banks without physically visiting a branch.
  • The entire procedure is devoid of any human intervention until the stage of sanction or disbursement of the loan.
  • The sophisticated algorithm of the web portal reads and analyzes data gathered from sources like GST data, IT returns, bank statement, etc.
  • There is no physical paperwork involved. The entire procedure, from application to disbursal of loan, is digitized.
  • The MSMEs that are registered with GST may get a concession of up to 2% on the interest rate.

Which are the Partner Banks?

The following banks are already in on this scheme. A few more banks may eventually join the league.

Partner Banks

What Documents Would You Need to Apply for this Loan?

  • Getting a loan involves some basic requirements. Applicants must submit the following while applying for this loan:
  • GST Identification Number or GSTIN of the enterprise, along with the GST User-ID & Password.
  • Income Tax Returns (ITR) for the last three years in XML format.
  • Bank Statement for last six months, to be submitted in PDF format.
  • Basic KYC including personal details, educational qualification and ownership information of the Director or Proprietor or Partners of the firm
  • A convenience fee of Rs 1000 (plus GST) on in-principle approval.

What is the Application Procedure?

#1 Register

  • Visit the website launched by the Indian Government at www.psbloansin59minutes.com/.
  • Register for the services by providing your name, email address and mobile number.
  • As an OTP is sent to the provided mobile number, it must be used to authenticate the registration process.
  • Set up the login credentials and sign in using the same.

login page

#2 Answer a Few Questions

The website will ask four simple questions pertaining to GST and your existing loans to gauge your eligibility. Answer them and proceed.

ques page

#3 GST Details

The website will ask for your GST details. Provide the GST number and associated login credentials. This information is subject to verification.

gst page

#4 ITR

The next step revolves around tax details. You will be asked to upload your IT Returns in XML format. Alternatively, you can log in using your PAN and its date of incorporation.

itr page

#5 Bank Account Information

In this step, the website will ask you to either upload your bank account statement for the last six months in PDF format or provide your NetBanking login credentials for verification of the same.

bank info page

#6 Company Information

This step requires detailed information on the company’s directors. Enter the information and proceed.

company director page

#7 Loan Information

This is where you need to provide information about the company, state the loan amount that you wish to apply for, and mention if you have collateral security. Additionally, you would also have to provide the details of your existing loans.

loan info page

#8 Bank

Choose the bank that you wish to be associated with from a list of more than a dozen banks.

select bank page

#9 Fee Payment

A one-time convenience fee of Rs.1000 (+GST) is charged. You need to make the payment to receive the in-principle approval letter in your registered email id.

fee payment page

#10 Get Approval

Download the approval letter and approach the concerned bank for disbursal of the amount. The website sanctions the loan but doesn’t disburse it. The concerned bank might need additional documents for verification before disbursing the amount. The amount can be expected to be credited within 10 working days.

approval letter page

To Sum Up…

Earlier, banks would typically take up to a month to sanction a loan. The hassles involved were sure to test the patience of the customer. However, gone are those days of making rounds of the banks for weeks, dealing with uncooperative staff, managing the cumbersome paperwork, signing up treasured collateral and the eternal wait for approval – all of these can be done in an hour, thanks to this incredible initiative. A few simple clicks can do wonders within the sphere of a mere hour. So, if you are in need of a business loan but you are deterred by the daunting process, make sure that you give this website a quick visit.