MSME loan in 59 minutes – does this sound a little unrealistic? Well, the Ministry of Micro, Small, and Medium Enterprises – Government Ministry has introduced a new MSME loan scheme under which the business owners can avail an MSME loan in 59 minutes. In this blog, we shall discuss MSME loan in 59 minutes in detail and the steps to avail it.
MSME loans have turned vital for the small and medium businesses facing a paucity of funds. The funds availed under the MSME loan can be very useful for a business in urgent need of money. They can be used for various purposes, from increasing the working capital to increase inventory.
Now, many MSMEs think that applying for a business loan is a very hectic task that involves a long list of documents and even a longer time for MSME loan disbursal. But not such a case is anymore. The government has recently launched MSME loan in 59 seconds where the MSME can avail a business loan in just 59 minutes.
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What is an MSME Loan in 59 Minutes?
MSME loan in 59 minutes – the government announced a new MSME loan scheme this festive season for small and medium business owners. The announcement of the business loan funding has created a buzz with excitement in the business world. Everyone around seems to search and know more about the MSME loan in 59 minutes.
Under this loan scheme, a business can avail a business loan from 10 lakhs to up to 1 crore. Notably, the business loan is disbursed in 7-8 days, the business owner gets the approval in just 59 minutes. So, this certainly is a quick small business loan which just takes 59 minutes for approval.
The MSME loans are offered by the government which primarily includes a working capital loan of up to 1 crores. The MSME loan interest rate will be 8%. However, it would vary based on the applicant’s CIBIL score, business activities, and other factors for that matter. This is the business loan without collateral, hence the loans availed under this scheme are the unsecured business loans. The processing fee for MSME loan in 59 minutes is INR 1,000 plus the taxes.
Now, the main highlight of the 59 minutes MSME loan by the government is that, as discussed above, approval will be given in 59 minutes. Whereas the MSME loan amount would be disbursed in 7-8 working days.
What are the Documents required for an MSME Loan in 59 Minutes?
The following are the documents required for MSME loan in 59 minutes:
- Bank statement of last 6 months in PDF format (for all business-related bank accounts).
- Digital version of KYC.
- Income Tax Returns for the last 3 years (XML format) and e-filing details.
- GST certification along with the GST ID and password.
- Ownership details/certificates of current ventures.
- Personal details of the applicant along with educational details.
How To Avail an MSME Loan in 59 Minutes?
Now the obvious question coming to your mind would be how to apply for MSME loan in 59 minutes? If you need business loan, follow the below mentioned steps:
Step 1: Visit the official website, www.psbloansin59minutes.com
Step 2: Next step is to complete the entire sign-up process by entering your name, mobile number, e-mail address, etc. Then click ‘Get OTP’ for the verification of the credentials.
Step 3: Enter the received OTP and click on proceed after agreeing to the terms and conditions.
Step 4: On the next screen appearing, you will have to answer a few basic questions with yes or no. Click proceed after answering all the questions.
Step 5: On the next step, you will be asked to fill your GST details, including GST ID and password. You will also have to fill the income tax information and upload the ITR in XML format for the last 3 years.
Step 6: At this step, you have to upload the bank statements for the past 6 months in the PDF format.
Step 7: Provide the details of the directors of the MSME, proprietor, and company address.
Step 8: This step is important! At this step, you have to provide the purpose for which you are availing the MSME loan. Also, you have to provide the details of previously availed business loans if any.
Step 9: At this step, you have to select the bank through which you want to avail the loan. The interest would vary from one bank to another. Notably, you must choose the bank that offers business loan at the lowest interest rate.
Step 10: Pay the convenience fee (INR 1,000) plus the applicable taxes. And download the approval letter.
Comparison: 59 Minutes Loan vs NBFC Business Loans
Also Read: 3 Business Trends That Will Make Big In 2019
The concept of fast MSME loan approval is not new! Many NBFCs like ZipLoan have been offering quick business loans. In fact, some of the features of MSME loan in 59 minutes are same as NBFC business loan, such as online application, online documentation, etc.
Let’s compare the 59 minutes loan with NBFC business loan.
59 Minutes Loan
NBFC Business Loan
MSME loan in 59 minutes uses an online application process.
NBFCs also offer online business loan application form.
The required documents for this MSME loan include 6-month bank statement, 3-year ITR, GST details, and personal and educational details.
The required documents include PAN card, 1-year ITR, bank statement, business place address proof, and residence address proof.
The MSME loan scheme offers business loan from INR 10 Lakhs to 1 crore.
NBFC business goes from INR 1 Lakh to 1 crore.
Loan disbursal time is 7-8 days.
NBFC business loan disbursal time is less than a week.
MSME loan in 59 minutes is collateral-free MSME loan.
NBFC business loans collateral-free business loans. Their other features include top-up loan, no prepayment charges, mobile App, social media presence, and customer support to assist customers.
ZipLoan is an RBI registered NBFC that offers small business loans of up to INR 5 lakhs to small business owners. All our business loan products are collateral-free and we do not have any hidden charges. We require minimal documentation for a business loan and offer online application form.