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Introduction
The Government of India has time and again come out with various incentives and schemes that are targeted specifically for the MSME Sector. This sector has been known and widely recognized to be the backbone of the country and the Government plans to revitalize or rejuvenate the MSME sector by reducing some of the major hindrances that are faced by them. Among the many difficulties faced by the MSME sector is the availability or easy access to financing options. The availability of loans from the banks or the NBFC was not an easy process for the MSME units.
The Government of India realizing this problem has tried to solve it by coming out with an instant loan scheme for such entities. This scheme of the Government, launched in November 2018, is known as PSB loans in 59 Minutes. Under this scheme, the partner banks (public sector banks and a few private sector banks) as well as select NBFCs will provide instant approval of the loans to the MSME sector within a maximum of 59 minutes. Further, the disbursal of these loans will be done within 7-8 business days from the approval of the loan.
This scheme is set up by an Act of parliament under the Department of Financial Services of the Government of India. Borrowers can easily log in to this portal and avail quick and hassle-free loans that too without any need to physically visit the branch or office of the lender
Eligibility and Documents for PSB Loans in 59 Minutes
The eligible applicants for this loan scheme are all the businesses that qualify as per the definition of the MSME units as per the MSMED Act, 2006. Further eligibility requirements under the scheme are,
- Existing businesses should have GST registration
- Should be IT compliant
- Must have at least 6 months bank statements
This scheme can be availed to satisfy the financial requirements of both GST registered as well as non-registered businesses.
The eligibility of an applicant will be determined based on the following factors.
- Repayment capacity of the applicant
- Income or revenue generation possibilities or avenues of the applicant
- Any pre-existing or continued loans or liabilities of the borrower
- Any other factors set as per the guidelines of the lenders
The documentation process of these loans is very simple and technology-driven in order to ensure faster processing of the loan application. The list of documents that may be required by the lender to process the loan application is mentioned below.
GST Details of the Borrower
These details include the details of single or multiple GST registrations held by the borrower. In the case of multiple GST registrations, the borrower will have to assign a primary GST registration for reference and future use.
For borrowers that do not have GST registrations, they will have to provide the business details and sales details of their organization via manual self-declaration
Income Tax Details
Income Tax details of the Borrower are required to be duly submitted in the specified format as per the guidelines of the scheme. The details required include,
- For term loans, the borrower has to provide the latest relevant ITR (3, 5, or 6 as applicable) in the XML format. ITR for the past 3 years is to be provided for term loans
- For working capital loans, the borrower will have to provide the latest relevant ITR (3,5 or 6 as applicable) in XML format and ITR 4 (as applicable) in XML/PDF Format. ITR for a minimum of 1 year has to be submitted for working capital loans.
Bank statements for the past 6 months have to be provided by the borrower in PDF format. Borrowers can upload bank statements for up to 3 major bank accounts held by them that have the maximum business activities.
- Details relating to the Directors/ Partners/ Proprietor of the business concern
- Details of the loan required (amount, tenure, etc.)
Features and Benefits of PSB Loans in 59 Minutes
This loan scheme has been launched with the aim to provide maximum benefits and boost to the MSME sector and reduce their hardships by easy access of timely finance. The various features and benefits of this scheme of the Government are mentioned below.
Amount of Loan
The amount of business loans sanctioned under this scheme ranges from a minimum amount of Rs. 1,00,000 to a maximum amount of Rs. 5,00,00,000. Individuals can also borrow retail loans like personal loans, home loans, and auto loans under this scheme. The loan amount in each category of these retail loan products is tabled below.
| Loan Type | Minimum Loan Amount | Maximum Loan Amount |
|---|---|---|
Not applicable | Rs. 20,00,000 | |
Not applicable | Rs. 10,00,00,000 | |
Not applicable | Rs. 1,00,00,000 |
Loan Application Process for PSB Loans in 59 Minutes
- The loan application process for this scheme is available via the online mode at the official website of this scheme. www[dot]psbloansin59minutes[dot]com
- New users will have to register at this portal by providing basic details like name, email id and mobile number. An OTP will be sent to the mobile number provided to authenticate the registration. Users will have to agree to the terms and conditions of the website to proceed with the registration and loan application.
- Users will then have to answer a series of multiple-choice questions and then continue further where they will have to provide the GST registration details as well as ITR details in the required formats.
- Next, the required bank statements and details of the directors/partners/proprietor and the company address have to be provided followed by the details of the loan purpose and any pre-existing loans taken.
- Users will then have to select the partner lender through which the loan needs to be processed. Users can use their discretion at this stage to select the lender based on the rate of interest, processing fees, etc.
- After paying the applicable fees of Rs. 1000 (excluding GST) and downloading the approval letter, the loan application process is completed (pending any due diligence by the lender).
Contact Information - PSB Loans in 59 minutes
Borrowers can contact the customer care service of this portal for any queries that they may have or any information that they may need through the following contact channels.
- Telephone number: 079 41055999
- Email ID: support[at]psbloansin59minutes[dot]com
Postal address: 301, Optionz Building,
3rd Floor,
Opp. Hotel Nest,
Chimanlal Girdharlal Road,
Navrangpura,
Ahmedabad,
Gujarat - 380009
FAQs – PSB Loans in 59 Minutes
1. Is the registration to the portal chargeable?
No. Users are not required to pay any registration fees.
2. What is the minimum loan amount that can be availed as business loans under this scheme?
The minimum amount that can be availed as business loan under this scheme is Rs. 1,00,000.
3. What is the maximum amount of home loan that can be sanctioned to an individual under this loan?
The maximum amount of home loan sanctioned under this scheme is Rs. 10,00,00,000.
4. What is the starting rate of interest applicable on the loans under this scheme?
The applicable rate of interest on loans under this scheme starts from 8.5% per annum.
5. How can a person check the status of their application?
A person can log in to the portal using their credentials (username and password) to check the status of their application once they have applied for the loan.