The 59-minute MSME loan issues under government schemes. It is a business capital loan for a sum ranging from 10 lakhs to 1 crore. Although interest rates can hit as low as 8%. They can vary depending on the individual’s credit profile.
Also, the loan requires a 1000 processing charge plus taxes for borrowers eligible for approval. Although the MSME loan approves the said timeline in 59 minutes. The actual disbursement normally takes 7-8 working days. PM Narendra Modi announces a small Diwali Gift for MSMEs in India on 2 November 2018. A fast business loan platform for individuals who want to grow their existing business. Under this scheme, MSMEs can get loans from Rs. 1 Lakh to Rs. 5 Crore from public and private sector banks and Non-Banking Financial Companies (NBFCs) in less than 59 minutes.
MSME/PSB 59 Minutes Loan: Introduction
Table of Contents
PSB Loans in 59 Minutes is an online platform that allows business people to apply for a business loan at an interest rate of 8.50%. This initiative aims to ease the MSME Market and encourage the self-employed business model in India by reducing the loan approval process and long queues at the bank. The goal of PSB Loans in 59 minutes is to approve a business loan in 59 minutes. Thereby dramatically reducing it from a long 30-day process and if approved, it is supposed to be disbursed in 7-8 working days.
What is the Full Form and Meaning of PSB loan?
The PSB Loan, or Public Sector Bank Loan, is an initiative launched by the Government of India aimed at facilitating quick and convenient access to business loans for Micro, Small, and Medium Enterprises (MSMEs). This scheme was introduced as part of a broader effort to enhance the financing landscape for small businesses, which play a crucial role in India’s economy by contributing significantly to employment and production.
Through the PSB Loan in 59 Minutes platform, MSMEs can apply for loans online, receiving approvals within a remarkably short timeframe of 59 minutes. This swift processing is designed to alleviate the common challenges faced by small businesses in securing financial support. Traditional loan applications often involve lengthy procedures and excessive paperwork, discouraging many entrepreneurs from seeking necessary funding. The PSB Loan initiative streamlines this process by minimizing documentation requirements and providing a more user-friendly interface for applicants
The loans available under this scheme range from ₹1 lakh to ₹5 crores, with competitive interest rates starting at approximately 8.50% per annum
The program encompasses various public sector banks, ensuring that a wide array of options are available for borrowers. The eligibility criteria typically include being an existing business with GST registration and a sound financial track record
In addition to its focus on speed and accessibility, the PSB Loan initiative also supports the Government’s objective of promoting entrepreneurship and innovation within the MSME sector. By easing the path to funding, it aims to empower small businesses to grow, innovate, and contribute to the overall economic development of India.
What is the 59-Minute Loan Scheme?
The 59 Minute Loan Scheme, officially known as PSB Loans in 59 Minutes, is an innovative financial initiative launched by the Government of India in 2018. This scheme is designed to provide Micro, Small, and Medium Enterprises (MSMEs) with fast access to business loans through a streamlined online platform. The primary objective is to address the financial challenges faced by small businesses by simplifying the loan application process.
Under this scheme, eligible MSMEs can apply for loans ranging from ₹1 lakh to ₹5 crores. The most remarkable feature is the promise of loan approval within just 59 minutes, making it one of the quickest financing options available for small businesses
This rapid turnaround time is achieved through a digital process that minimizes the paperwork and procedural delays typically associated with traditional bank loans.
The 59 Minute Loan Scheme also encourages transparency and efficiency by allowing borrowers to compare various offers from multiple public sector banks and non-banking financial companies (NBFCs) on a single platform
This fosters a competitive environment where lenders can provide better terms and conditions to attract customers.
In addition to speed, the scheme is tailored to meet the needs of modern entrepreneurs by allowing them to submit applications electronically, which can be tracked online throughout the approval process. Documentation requirements are also significantly reduced, as applicants only need to provide essential information, such as GST registration and bank statements
This initiative reflects the Government of India’s commitment to promoting entrepreneurship and strengthening the MSME sector, which is vital for economic growth and job creation in India. By leveraging technology to facilitate quick and efficient financing, the 59 Minute Loan Scheme plays a crucial role in empowering small businesses to thrive in a competitive market.
What are the Interest Rate of 59 Minutes Loan?
The PSB Loan in 59 Minutes scheme offers competitive interest rates, starting from 8.50% per annum. However, these rates can vary based on several factors, including the applicant’s credit profile, the nature of the business, and the policies of the lending institution
Factors such as the applicant’s credit score, business revenue, and past repayment history significantly influence the final interest rate offered. This flexible approach allows lenders to assess risk and tailor their offers to meet the diverse needs of MSMEs, ultimately fostering a more supportive lending environment.
What is PSB 59 Loan Scheme Eligibility?
The PSB Loan in 59 Minutes scheme is designed to facilitate quick and easy access to business loans for Micro, Small, and Medium Enterprises (MSMEs). However, to benefit from this scheme, applicants must meet specific eligibility criteria, ensuring that they are financially sound and compliant with regulatory requirements.
Below are the key eligibility criteria and documentation requirements for the PSB 59 Loan Scheme.
Business Requirements
To qualify for the PSB 59 Loan, applicants must be existing businesses that are registered and operational. The following criteria must be met:
GST Compliance: Businesses must possess a valid GST (Goods and Services Tax) Identification Number (GSTIN). This indicates that the business is registered for GST and complies with tax regulations. GST compliance is essential for monitoring and verifying the business’s turnover and financial dealings
Income Tax Compliance: Applicants must also be compliant with income tax regulations, which is verified through the submission of Income Tax Returns (ITR). This compliance ensures that the business is operating within the legal framework and fulfilling its tax obligations.
Financial History
Financial history plays a crucial role in assessing the eligibility for the PSB Loan:
Bank Statements: Applicants are required to provide bank statements for the last six months. These statements allow lenders to evaluate the cash flow, financial health, and transaction history of the business. Consistent deposits and healthy balances are indicators of a stable business that can repay the loan.
Turnover and Repayment Capacity
Lenders have specific criteria regarding the business’s turnover and repayment capacity. Key aspects include:
Minimum Turnover: The applicant’s business must meet a minimum turnover threshold set by the lending institution. This turnover criterion varies between lenders but is generally aligned with the nature of the business and its operational scale. A higher turnover suggests robust business activity and increased capacity to repay the loan.
Repayment Capacity: The business’s ability to repay the loan is a critical factor for approval. Lenders assess various parameters, including monthly cash flow, profit margins, and existing liabilities, to determine if the applicant can manage additional debt. A strong repayment capacity is vital for securing favourable loan terms and interest rates.
Credit History
A strong credit history is essential for eligibility in the PSB Loan scheme. Lenders typically review the applicant’s credit score, which reflects their creditworthiness and financial discipline. Key points include:
Credit Score: A higher credit score (generally above 750) is viewed favourably by lenders, indicating responsible credit management. A strong credit history not only increases the likelihood of loan approval but may also result in better interest rates and terms.
On the other hand, a low credit score may lead to loan rejection or higher interest rates.
Details on the new web portal:
- At first, this web portal psbloansin59minutes design for the use of high-level algorithms. Integrates with GST-related data, income tax returns, bank statements, fraud checks, and office audits.
- Also, the automated system compares data points from various sources and analyzes the applicant’s loan eligibility.
- Moreover, it’s the first of its kind with a banker interface and connects with many banks without visiting branches.
- Besides, the loans are normally provided by the Small Industries Development Bank of India (SIDBI) and other Public Sector Banks (PSBs).
- The PSBs include State Bank of India, Punjab National Bank, Indian Overseas Bank, and Bank of Baroda.
- Loans approval succeeds by the bank using the digital goal-scoring model and methods in line with the bank credit policy.
- This web portal also integrates with the Credit Guarantee Fund Trust for Micro and Small Enterprises scheme. That makes it easier to obtain loans without the mandatory security deposit requirement.
- Also, it’s important to know that the loan process is without manual intervention. Until the approval and repayment phase of the loan.
- Once the loan approval is successful, a fee of Rs 1,000 is charged to the applicant.
Scheme Features :
- The scheme is designed to provide an amount of up to Rs. One loan as a loan in fifty-nine minutes, i.e. less than an hour.
- There will be a 2% discount for MSMEs who receive loans up to Rs. One crore, as long as a particular domain registers with GST.
- Loans are provided within the range of Rs. 1o lakhs to Rs. 1 crore with various interest rates. The low-interest rate must be maintained at 8%.
- Under this scheme, MSMEs can also receive their loans from the Small Industries Development Bank of India (SIDBI).
- The site is open only to the issuance of loans, which helps to complete the activities related to the loan application.
- No original documentation is needed, a scanned copy of the document gets updated on the provided website.
Documents required for 59 Minute MSME loan
The important documents from prospects applying for the loan are:
To apply for the PSB Loan in 59 Minutes, applicants must submit several documents that provide essential information about their business and financial standing. The required documents include:
GST Identification Number (GSTIN)
The GSTIN is a unique identification number assigned to businesses registered under the Goods and Services Tax regime. This document is crucial for verifying the applicant’s compliance with tax laws and assessing their turnover.
Income Tax Returns (ITR) in XML Format
Applicants must submit their Income Tax Returns for the past financial years. The returns should be in XML format, which is a standard format for submitting tax-related documents. This submission allows lenders to assess the applicant’s income and financial performance accurately. Income tax return for the last 3 years in XML format including tax codes and information on e-filing.
Bank Statements (Last Six Months)
Providing bank statements for the last six months is essential for evaluating the business’s cash flow and financial behaviour. These statements should reflect regular deposits, withdrawals, and overall balance trends to give lenders insight into the applicant’s financial health.
Business PAN Details
The Permanent Account Number (PAN) of the business is another critical document required for the loan application. The PAN is used for tax identification and verification purposes, ensuring that the business is legally registered and compliant with financial regulations.
- Personal and Contact Information
- Applicants must provide their personal and contact information, including:
- Name of the business owner or authorized signatory
- Contact number and email address
- Business address and details about the nature of the business
Steps to get 59 minute MSME loan
The following are the steps involved in applying for a loan:
- Firstly, visit the official website psbloansin59minutes and register under the ‘new user’ tab. Complete the registration process by entering your name, email, and mobile number.
- Secondly, authentication is important. OTP is sent to the phone. Enter OTP and accept the terms and conditions. Click the ‘Continue’ button.
- Complete the list of questions and select the ‘Continue’ tab again.
- Enter your GST details – GST number and password, as well as income tax details. Enter tax information in XML format or enter ITR details including PAN and installation date.
- Upload the 6-month bank statements or provide complete banking details so that the bank can access the financial statements.
- Give all the details of your business.
- Select the purpose of the loan and provide details of the existing loan, if any.
- For the interest rate offered by the various banks, select the bank you would like to apply for.
- Pay a service fee of ₹1000 plus taxes to proceed.
- Download the letter of acceptance. While the government works hard to make the country more business-friendly. And also provide easy access to credit. A detailed analysis of the MSME loan in 59 minutes needs to identify the pros and cons of the program.
Benefits of MSME/PSB 59 Minutes Loan
The PSB Loan in 59 Minutes scheme is designed to address the unique challenges faced by MSMEs in India. Below are some of the key benefits and features that make this loan scheme an attractive option for small businesses:
Fast Processing
One of the standout features of this scheme is the promise of loan approval within 59 minutes. This rapid processing time is made possible through advanced digital technology and streamlined procedures that eliminate traditional bureaucratic delays. As a result, entrepreneurs can quickly secure the funds they need to seize business opportunities, manage cash flow, or tackle unexpected expenses. The speed of approval has made this scheme particularly appealing in today’s fast-paced business environment, where timing can be critical to success.
High Loan Amounts
The PSB Loan in 59 Minutes offers flexibility in terms of loan amounts, ranging from ₹1 lakh to ₹5 crores. This wide range allows businesses of varying sizes and needs to access funds suitable for their operations. Whether a startup requires initial capital for inventory and equipment or an established business seeks funding for expansion or new projects, this scheme accommodates diverse financial requirements.
The ability to access higher loan amounts is especially beneficial for businesses looking to grow or innovate.
Minimal Documentation
In a significant departure from traditional lending practices, the PSB Loan scheme requires minimal documentation. This paperwork reduction is a crucial benefit for entrepreneurs who often face time constraints and may not have the resources to compile extensive financial documents. Typically, applicants need to provide essential documents such as GST registration, bank statements, and income tax returns. This simplified documentation process expedites loan processing, allowing businesses to focus more on their operations rather than bureaucratic hurdles.
Contactless Procedure
The entire loan application process under the PSB Loan in 59 Minutes scheme is conducted online, ensuring a contactless experience. In the wake of the COVID-19 pandemic, the ability to apply for loans from the comfort of one’s home or office has become increasingly important. This online model not only enhances safety but also offers convenience, enabling applicants to track their loan status, upload documents, and communicate with lenders without needing to visit a bank branch. The shift towards digital banking aligns with global trends, making financial services more accessible.
Flexible Repayment Terms
Understanding that businesses may experience fluctuations in cash flow, the PSB Loan in 59 Minutes offers flexible repayment terms. Borrowers can choose repayment schedules that suit their financial situation, including options for monthly, quarterly, or even annual repayments. This flexibility helps businesses manage their finances more effectively, ensuring they can meet their loan obligations without compromising their operational needs. Additionally, the option to negotiate terms with lenders further empowers borrowers to find a plan that aligns with their business model.
Multiple Lenders
One of the significant advantages of the PSB Loan in 59 Minutes scheme is that it connects borrowers to a network of multiple lenders, including various public sector banks and non-banking financial companies (NBFCs). This broad access allows entrepreneurs to compare loan offers from different institutions, facilitating better decision-making. By providing a competitive landscape, the scheme encourages lenders to offer attractive interest rates and favourable terms to secure business. This aspect of the program not only promotes healthy competition among financial institutions but also empowers borrowers to find the best fit for their needs.
In summary, the PSB Loan in 59 Minutes scheme represents a transformative approach to business financing for MSMEs in India. With competitive interest rates, rapid processing times, minimal documentation, and flexible repayment options, this initiative is well-suited to meet the evolving needs of small businesses
By leveraging technology and creating a supportive ecosystem for entrepreneurs, the scheme contributes significantly to the growth and sustainability of the MSME sector, ultimately bolstering the Indian economy.
Things to keep in mind while applying for MSME 59 Minutes Loan
- The initial principal sum is approved based on the data provided by the applicant. Only after due diligence by the banks is carried out can the final disbursement of the loan be accomplished.
- Further specifications relating to the loan, such as the amount of the loan, the interest rate, the processing cost, etc. Showcase on the portal. And the borrower allows selecting.
- Another major factor is the contribution of the promoter. The promoters have to contribute or spend a certain percentage of the loan sum from their funds.
- Information of ownership provided by the Partners/Director is used to validate their credit history. Also, verify the scores of the Bureau to confirm legitimacy.
- For manual processing of the loan application, there is an alternative. Once the applicant has chosen the branch for manual sorting, the branch and the applicant are sent an email in this regard. Based on this the applicant can take it forward for further processing with the branch officers.
Conclusion
The government is currently taking quite a few steps to improve India’s SME and MSME industries. As they contribute significantly to the economy, both in terms of capital and employment. As an MSME entrepreneur, it is your responsibility to take full advantage of all these government initiatives and schemes and advance your business. Before applying for an MSME 59 Minutes Loan, the candidate is required to hold these details handy in a 6-month bank statement. Also, an e-KYC paper as a digital one is required to be uploaded.
FAQ – Frequently Asked Questions
What is a PSB Loan in 59 minutes?
PSB loan in 59 minutes introduces by the government of India to give Business Loans to MSMEs in a process that can approve Loan Application in 59 minutes. So, the applicant can apply for an MSME small business loan by PSB Loan to satisfy their business requirements.
What is PSB Loan Disbursal Time?
The PSB Loan in 59 Minutes scheme is designed to provide Micro, Small, and Medium Enterprises (MSMEs) with quick access to funding, significantly reducing the time usually required for loan processing. Once an application is submitted and approved, the disbursal of the loan amount is typically completed within 7 to 8 working days. This rapid turnaround time is a key advantage of the scheme, allowing businesses to access funds when they need them most, whether for expansion, operational expenses, or inventory purchases
Do tell me the loan amount in PSB loans in 59 minutes.
Candidates can apply for loan amounts starting from ₹ 1 Lakh to ₹ 5 Cr. that too under PSB Loans in 59 minutes from any public or private sector Banks or NBFCs.
What about the Disbursal Process of PSB Loans
After approval, the disbursal process involves several steps:
Final Verification: Once the loan application is approved, the bank conducts a final verification of all submitted documents to ensure their authenticity and compliance with regulatory requirements. This includes verifying GST compliance, tax returns, and bank statements.
Loan Agreement: Following successful verification, the borrower must sign a loan agreement that outlines the terms and conditions of the loan. This agreement specifies the loan amount, interest rate, repayment schedule, and other essential terms.
Fund Transfer: After the agreement is signed, the loan amount is processed for transfer. Most banks will use electronic transfer methods, such as NEFT or RTGS, to disburse the funds directly into the borrower’s bank account
This swift transfer process is part of the scheme’s objective to minimize delays.
Notification: Once the funds are successfully transferred, borrowers typically receive a notification via email or SMS confirming that the loan has been disbursed. This notification serves as a record for the business, confirming the funds’ availability.
What is the duration of the PSB loans in 59 minutes can disburse?
PSB loans in 59 minutes can be disbursed in 59 minutes, reducing the approval and penalty processing period for business loans, which can typically take about 30 days.
How to Check PSB Loan Status?
Monitoring the status of your PSB loan application is a straightforward process. Once you have applied for the loan, you can track its progress using the following steps:
Visit the Official Website: Start by going to the official website of the bank where you applied for the PSB Loan. Each participating bank may have its dedicated portal for loan tracking.
Locate the Loan Status Option: On the bank’s website, look for a section dedicated to loan applications or customer services. This section typically includes options for checking the status of your loan application. The wording may vary by bank, but phrases like “Track Your Loan Status” or “Check Application Status” are common.
Enter Required Details: You will need to input specific information to access your loan status. Most banks will require your loan application or reference number, which you receive at the time of your application. Some banks may also ask for additional details, such as your name, date of birth, or registered mobile number, for verification purposes
View Loan Status: After entering the necessary information, you will be able to see the current status of your loan application. This may include details such as whether the loan is under review, approved, or disbursed. If your application has been approved, you may also find information regarding the disbursal date and amount.
Customer Support: If you encounter any difficulties while checking your loan status online, most banks offer customer support services. You can reach out to their helpline or visit the nearest branch for assistance. Customer service representatives can provide updates and address any concerns you may have.
What is the procedure to get an MSME/PSB 59 Minutes Loan?
Businessmen can apply for a loan in the 59 minutes portal by registering on the online portal and then can apply for the loan by providing the required documents and information such as Goods and Services Tax numbers, bank account statements, etc.
What is the time for a PSB loan in 59 minutes?
The PSB Loan in 59 Minutes scheme typically provides loan tenures ranging from 1 year to 7 years. This flexibility allows businesses to choose a repayment period that best suits their financial capabilities and requirements.
How can I get an MSME loan in 59 minutes?
Any MSME(Micro, small and medium enterprise) can apply for PSB loans in 59 59-minute MSME loan via the 59-minute portal by filling out the form along with important documents such as GST number, Income returns, etc.
What is the loan amount in PSB loans?
Under the PSB Loan in 59 Minutes scheme, loan amounts can range from ₹1 lakh to ₹5 crores. This wide range caters to the diverse financing needs of Micro, Small, and Medium Enterprises (MSMEs).
What are the documents required for the 59 minute MSME loan?
- Details of the GSTIN number and GST username.
- Six-month bank statement in PDF format.
- Last three years’ income tax return in XML format and e-filing information.
- Partner/Director details the need for both personal and educational data.
What is 59 minutes loan ease?
The 59 Minutes Loan Ease refers to the expedited process of applying for and receiving approval for business loans under the PSB Loan in the 59 Minutes scheme. It enables MSMEs to complete the entire loan application process online, resulting in quick approvals, typically within 59 minutes, and disbursement within a few days. This ease of access and efficiency aims to support businesses in overcoming cash flow challenges swiftly.
I did not receive an OTP. What should I do?
In case you have not received OTP in any of the categories, kindly contact us at our customer support number 079-41055999.
Is the 59 Minute Loans scheme a scam?
No, the 59 Minute Loans scheme is not a scam. It is a legitimate initiative launched by the Government of India, specifically under the PSB Loan in 59 Minutes scheme. This program is designed to provide quick access to business loans for MSMEs (Micro, Small, and Medium Enterprises) through an online platform, aiming to streamline the lending process.
Can we really get a PSB loan of 1 crore in 59 minutes?
While the name suggests that loans can be approved in 59 minutes, this refers to the initial approval process. Actual disbursement of larger loan amounts, such as ₹1 crore, may take longer due to additional verification processes and documentation requirements. However, the scheme is designed to expedite the approval process significantly compared to traditional methods.
What are the PSB loans in 59 minutes?
The PSB Loan in 59 Minutes scheme is an online marketplace that allows MSMEs to apply for business loans with quick approval times. It connects borrowers with multiple public sector banks and financial institutions, offering loans ranging from ₹1 lakh to ₹5 crores with varying tenures.
Is the loan in 59 minutes launched by PMO a scam?
No, the 59 Minutes Loan scheme launched by the Prime Minister’s Office (PMO) is not a scam. It is a part of the government’s initiative to support small businesses by facilitating easier access to credit. The program has been implemented through the collaboration of public sector banks and has garnered positive feedback from many MSME borrowers.