The government of India has announced the historic PSB MSME Loan Scheme of Lending Up to 1 Cr Business Loans to Small and Medium Enterprises within 59 minutes.
The government of India announced today, 2nd November 2018, of providing loans up to 1 Crore Rupees to MSMEs within 59 minutes.
While announcing the program, Prime Minister said in addition to this landmark decision, the government has come up with 12 more key decisions to boost up the small and medium sector enterprises in India. The prime minister called it a ‘Diwali Gift’ to small-scale entrepreneurs in India.
The GST registered companies will get an additional 2% rebate for a loan of under 1 Cr.
This step will surely facilitate issuing fast business loans to micro, small and medium enterprises (MSMEs). The government has promised that banks will approve funding up to Rs 1 crore in 59 minutes. The candidate applying for the loan need not visit a bank branch in order to get sanctioned.
The Rate of Interest starts from 8% Onwards Collateral Coverage is not Mandatory as the Platform is directly connected to the CGTMSE scheme.
The portal has been set up by Sidbi. Banks like SBI, PNB, Bank of Baroda, Indian Bank, and Vijaya Bank have already joined this financial support program. The portal will work under the monitoring of the Department of Financial Services (DFS), Ministry of Finance.
The portal will analyze the data provided by the applicant through multiple sources like income tax, Cibil, GST data, bank statements through a complex algorithm. The approval time is expected to take no more than 59 minutes which normally takes 20 – 25 working days.
The process of getting a PSB MSME Loan of 1 Cr under 59 Minutes
The process of getting this loan is simple. Visit the site https://psbloansinindia59minutes.com.
The MSME needs to fill up the application form online. As instructed he/ she is needed to furnish the required details as instructed in the form.
The gateway will perform back-end checks necessary connecting with other fraud checking platforms. If the required documents fulfill the requirements, and no issues are found, the loan will be sanctioned within an hour.
Applicants having GST will be preferred and supposed to get extra privileges This clearly shows, The government is rewarding entrepreneurs who are showing interest in the formal economy. We have seen earlier too, the interest of the present government is aggressively promoting MUDRA loans.
Documents Required to Avail PSB MSME Loan under 59 Minutes
To avail of this loan, you need to have a GST identification number. Along with that income tax returns in XML format, a bank statement in pdf format, director/ ownership details.
There is no denying the fact, this financial support scheme will boost the MSME sector which comprises over 63 million units employing more than 111 million people. The interesting thing to watch is, how the government is planning to execute this historic program.
Editorial Staff at NextWhatBusiness is a team of Business Consultants having years of experience in small and medium scale businesses.