Prime Minister Narendra Modi announced on November 2 a facility of loan to MSMEs in 59 minutes, after having started the service on a pilot basis. Here is a step-by-step guide on how to avail the 59-minute loan for MSMEs.
A few months ahead of the General Election, Prime Minister Narendra Modi gave the MSME sector twelve Diwali gift, of which, the most lucrative one was loans to small industries in less than an hour. After starting a loan disbursement in 59 minutes on a pilot basis, the prime minister announced the service on November 2.
“Anyone small entrepreneur, placed in any part of the country will now be able to get loans up to Rs 1 crore in just 59 minutes. I deliberately did not keep it one hour, because it does not take time to delay one hour into two; two to three,” Modi said at the MSME ‘Support and Outreach Program’ in Delhi.
The prime minister said that the sanction of loan will be done using algorithm based on credit worthiness of an entrepreneur on the basis of GST and Income Tax information, and that a MSME sector businessman will no longer be required to run from one bank to another.
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.
How to get 59-minute MSME loan: A step-by-step process
Any one running a MSME business can get the loan between Rs 10 lakh and Rs 1 crore. The interest rate on the loan will start from 8%. Once you make an application for loan, the online portal, connected to the Credit Guarantee Fund Trust for Micro and Small Enterprises scheme, will get you in-principle approval of the loan application.
You will be required to submit your bank account details, e-KYC paper, Income Tax details, GST details and ownership of business details.
- Go to the official website, which is www.psbloansin59minutes.com
- Sing-up on the portal: Give you name, email id, mobile number; enter the OTP
- After that, you will be asked a few questions such as ‘are you registered under GST’; check the boxes accordingly
- Finally, check the box with disclaimer I am a registered MSME and I agree with the above selected point
- Click Proceed
- Now you need to give your GST details
- After GST details, you need to give details of Income Tax
- Then, you will be asked to give bank account details. You can upload bank statement or you can login with net banking credentials
- After bank details, you will be required to give details of you business: director of the company, address of the company etc
- Next step is to furnish as why you need the loan
- You will also be asked to give details of your previous loans
- After furnishing all the details, you can choose the banks you want loan from
- If your application get selected by a bank, you get in-principle approval for the loan. After this, you will be asked to pay convenience fee of Rs 1,000 plus taxes
- After payment of fee, you can get in-principle approval letter
- Once in-principle approval of loan is made, the loan will be disbursed in 7-8 days