News & Blog

Loan up to 1 Crore in 59 Minutes by MSMEs

News & Blog

Loan up to 1 Crore in 59 Minutes by MSMEs

The government has introduced an easy loaning scheme or Loan up to 1 Crore in 59 Minutes to support the MSMEs i.e. the Micro, Small and Medium Enterprise. In the declaration made on 2nd November 2018, the government stated that it would be giving opportunities for growth to the MSME sector. Fast loans of up to the value of Rs 1Cr shall be provided in a record time of less than an hour if all conditions are satisfied by the applicant.

The industries covered under this scheme are:

MSME fast loans up to 1 Crore in 59 Minutes

The government has given a brief description of the loans under this scheme. The features are

  1. The loan amount shall be between Rs 10 lakh to Rs 1 Cr
  2. Rate of interest shall start from 8.5%
  • The loan shall be disbursed within 7 to 8 working days from the date of approval of the application
  1. No mandatory collateral requirements
  2. No registration fee is applicable
  3. The borrowers who desire an approval in principal amount and the proposal made by him matches the products of the lender shall be required to make a nominal payment of Rs 1000 and applicable taxes
  • All registrations shall be done only on the web portal prescribed by the government

Documentation required for registering on the web portal for the MSME fast loan

The documents mentioned by the government for procuring the loan are

  • 6 months bank statements in PDF format
  • Income tax returns in XML format along with income tax codes and e-filing details
  • GST details i.e. GST identification number
  • Details of partners/director including personal and educational information

Steps for registering with the web portal for the fast loan

The applicant needs to follow the following steps to register himself on the government’s web portal

  1. The applicant shall visit the government’s official portal psbloansin59minutes.com
  2. Provide details like name, email id and mobile number for sign up
  3. OTP is generated on the mobile number provided by the applicant
  4. Once OTP is fed to the system the applicant needs to answer 4 basic questions
  5. The GST details need to be provided
  6. Income tax details in XML shall be entered
  7. Bank Statement in PDF to be uploaded
  8. Finally, the purpose of the loan needs to be furnished along with any details of previous loans availed
  9. Finally, the applicant needs to select the bank from which he desires the loan to be processed
  10. Once the approval has been received the applicant shall pay the convenience fee along with the additional charges. The convenience fee is Rs 1000 only
  11. The approval letter can be downloaded after the payment of the fee has been completed

Before the applicant gets ready to register himself on the portal he should make sure he has the soft copies of the following documents

  • GST identification number
  • Income Tax return in XML
  • PAN cards and date of incorporation
  • Bank statement of the last six months in PDF or net banking credentials

The government has designed the web portal for faster processing of the formalities related to the loan. This web portal has been designed using specifically designed advanced algorithms that are integrated with all data related to Income tax, GST, fraud checks and bureau checks. The algorithms automatically check the eligibility of the applicant and connect to the banker interface if the applicant is verified and loan accepted. The loans are in general provided by the SIDBI i.e. the Small Industries Development Bank of India along with the Public Sector Banks.

The banks approve the loan amount by the digital scoring method and loans are processed without manual intervention until the stage of approval and disbursement arrives. The convenience fee of Rs 1000 along with taxes is applicable once the loan has been approved. The applicant needs to understand that the sanctioning of the loan does not assure disbursal. The bank if has any doubts about the authenticity of the applicant can ask for further clarification, documentation, and verification for the disbursal of funds in real.

FAQs

Who is eligible for MSME fast loan?

The eligibility defined by the government for the MSME fast loan service is

  1. The business already exits the borrower shall be GST and IT compliant
  2. Should have 6 months bank statement
  3. Amount eligibility shall be determined by
  4. Income
  5. Repayment capacity
  6. Existing credits/loans
  7. Factors decided by the particular financial lender chosen by the applicant

What is the interest rate applicable for the loans disbursed under the fast loan service of MSME?

The interest rate shall start from 8.5% onwards for the fast loan services rendered for the MSME

What are the documents required to procure a loan up to 1 crore in 59 minutes for the MSMEs from the government?

The government has mentioned the following documents that shall be required for the fast loan service it is providing to the MSME sector

  1. 6 months bank statements in PDF format
  2. Income tax returns in XML format along with income tax codes and e-filing details
  3. GST details i.e. GST identification number
  4. Details of partners/director including personal and educational information
  5. E- KYC documents of the applicant

How can a person register for the fast loan for MSME by the government?

The applicant needs to follow the following steps to register himself on the government’s web portal

  1. The applicant shall visit the government’s official portal www.psbloansin59minutes.com
  2. Provide details like name, email id and mobile number for sign up
  3. OTP is generated on the mobile number provided by the applicant
  4. Once OTP is fed to the system the applicant needs to answer 4 basic questions
  5. The GST details need to be provided
  6. Income tax details in XML shall be entered
  7. Bank Statement in PDF to be uploaded
  8. Finally, the purpose of the loan needs to be furnished along with any details of previous loans availed
  9. Finally, the applicant needs to select the bank from which he desires the loan to be processed
  10. Once the approval has been received the applicant shall pay the convenience fee along with the additional charges. The convenience fee is Rs 1000 only
  11. The approval letter can be downloaded after the payment of the fee has been completed

What fees have been mentioned by the government for the 59 minutes loan service?

The government has prescribed a convenience fee of Rs 1000 plus additional taxes for the 59 minutes fast loan service.

Registrationseva.com can help in all kinds of Registration in very less time and at an affordable price. You can reach us at info@registrationseva.com or post your query here.

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