In a bid to boost credit availability to Micro, Small and Medium Enterprises (MSMEs), Finance Minister Arun Jaitley has launched a web portal through which one can avail loans up to Rs 1 crore in just 59 minutes. The portal will enable principal approval of loans up to Rs 1 crore for MSMEs from Small Industries Development Bank of India (SIDBI) and 5 Public Sector Banks (PSBs).
The web portal is www.psbloansin59minutes.com. “The portal sets a new benchmark in loan processing and reduces the turnaround time from 20-25 days to 59 minutes,” the finance ministry said in a statement. Upon approval, the loan will be disbursed in 7-8 working days. On this website, in-principle approval of loans will not require any physical documents.
Here are key features of the MSME loan in 59 minutes plan:
- MSMEs will be able to apply for loans from SIDBI and 5 PSU Banks — State Bank of India, Bank of Baroda, Punjab National Bank, Vijaya Bank and Indian Bank.
- MSMEs will be able to connect with banks without visiting the branch. There will be no human intervention until the sanction and or disbursement stage.
- The portal will be using “sophisticated algorithms” to read and analyse data points from sources such as IT returns, GST data, bank statement etc.
- MSMEs can also get loans up to Rs 2 crore without any collateral using this portal.
While applying for the loans, one will require:
- GST Identification Number (GSTIN), GST User-ID & Password
- Income Tax E Filing password & Date of Incorporation/ Birth OR ITR for latest 3 years in XML format
- Current A/c – Net Banking: Username & Password or Bank Statement for last 6 months in PDF format
- Director/Partner/Proprietor details: Basic, Personal, KYC, Educational details & ownership in the firm
- Convenience fee Rs 1000 + GST on in-principle approval.