Background of the scheme
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) -State Bank of India, Bank of Baroda, Punjab National Bank, Vijaya Bank and Indian Bank.
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.
PSB Loan in 59 minutes is a MSME Loan focused on automation of the Loan Process in such a way that one can get eligibility letter, Approval in less than 60 minutes and can choose the bank from the given list for a smoother MSME Loan process.
Objective of the scheme
PSB Loans or Public Sector Banks loans in 59 minutes is an online marketplace, which enables the business individuals to apply for a Small Business Loan with Loan Amount starting from Rs 10 Lakh to Rs 1 Crore in just 59 minutes. This initiative was taken to ease the MSME Business and promote self-employed business model in India by reducing the loan approval process and long queues at the bank. PSB Loans in 59 minutes aims at approving the business loan in 59 minutes thus reducing it significantly from a long 30 day process and expected to be disbursed in 7-8 working days, if approved.
Quantum of benefits available under PSB loans in 59 Minutes
1.Loan Amount starting from Rs 10 Lakh to Rs 1 Crore: PSB Loans in 59 minutes helps in providing loan amount starting from Rs 10 Lakh to Rs 1 Crore to all the business individuals so any business requirement small or big can be met easily with the mentioned loan amount.
2.Rate of Interest: The rate of interest for PSB Loans in 59 minutes starts from 8% onwards.
3. Minimal Documentation: With PSB Loans in 59 minutes, the entire process of a Small Business Loan for MSMEs is expected to become super quick and hassle free that too with minimal documentation.
4.Advanced Technology Backed Loans: PSB Loans in 59 minutes processes the loans without human intervention till the stage of sanction or the disbursement. The analysis process is done from the various sources of the loan applicant’s financial profile.
5.Apply at Multiple Banks: PSB Loans in 59 minutes provides a convenient process for the loan applicants who can apply for a Small Business Loans at multiple times in one go.
6.Safe and Secure: The platform understands the safety of the information given by the Loan Applicants. The entire data of the applicants is safe and secure with the highest level of security.
7.CGTMSE Coverage:This scheme also provides the benefit of CGTMSE Scheme cover.
8.Integration with Govt. Facilities:PSB Loans in 59 minutes is integrated with the latest facilities like Income Tax Return, GST, and Bank statement so it helps in decision making of the loan application.
9.No human intervention : The Loan is processed without human intervention till sanction and/or disbursement stage
For the Business which already exist the borrower should be GST, IT compliant and should have Six Months Bank Statement. He should also MSME registered, the Loan Eligibility will be determined on the following factors:
2.Repayment Capacity of the Borrower
3.Existing credit facilities
4.Other factors set by the Financial Lender
How to apply
Follow the steps given below for applying under PSB Loans in 59 minutes, also refer this video tutorial for understanding the whole procedure for application.
Step1: Register on PSB Loans in 59 minutes portal
1.Go to https://www.psbloansin59minutes.com
2.Register yourself by filling in your name, Email Address, mobile number and click on ‘Get OTP’
3.Enter the OTP received on the mobile number
4.Agree to the Terms and Conditions mentioned below in the checkbox
5.Click on ‘Proceed’ after entering all the columns
6.Create a Password for your account for future reference
Step2:Answer 4 questions
You need to answer four simple questions such as whether you are registered with GST and have been filing your GST returns regularly and have never defaulted on a loan.
Step3:Provide your GST details
Step4: Provide tax info
You can either upload your tax returns in XML format or login with your tax credentials — your PAN and date of incorporation.
Step5:Provide bank account info
Step6:Provide details of directors, proprietors and partners
3.Net worth certificate
4.Profit sharing ratio of partners/Share holdingpatern
7.Details about personal belongings of main directors, proprietors and partners
Step7:Provide loan info
Now you have to provide details of your business, the purpose of loan, any collateral security and any previous loans.
Step8:Select the bank
Select the bank from where you want a loan. Currently, about a dozen banks are linked with this website.
You will have to pay a convenience fee of Rs 1,000 + GST.
Step10:Download approval letter
This is the last step. Your approval letter is ready to be downloaded
List of documents required for applications: –
Loan Applicant with existing business can apply for small business loan with the following documents:
1.GST Identification Number (GSTIN), GST User Name and OTP
2.Latest 3 year ITR in the format of XML
3.Last 6 months Bank Statement in PDF Format: The Loan Applicant can upload Bank Statement for maximum three bank accounts on the portal. It is preferable to upload the Bank Statement having the major bank activities
4.Details of the Loan Required
6.Details of Proprietorship/ Partners/ Directors
7.E-KYC Documents of the Loan Applicant