Prime Minister Narendra Modi on Friday announced a slew of measures including sanction of loans of up to Rs 1 crore to small and medium enterprises in 59 minutes through a special portal to give a boost to the nation’s second biggest employing sector.
GST-registered small and medium enterprises (MSMEs) can now avail of loan of up to Rs 1 crore in just 59 minutes, he said announcing the measures. Also, GST-registered MSMEs will get 2 per cent interest subvention or rebate on incremental loan of up to Rs 1 crore, he said. Interest subvention on pre and post shipment credit for exports by MSMEs has been increased from 3 per cent to 5 per cent, he said.
The portal is psbloansin59minutes.com and it mentions this scheme on its website. It says “PSB Loans in 59 minutes is an online marketplace, which will enable In-
Principle approval for MSME loans up to Rs 1 Crore in 59 minutes from Public Sector Banks.”
Post receiving of In-Principle approval letter, the loan is expected to be disbursed in 7-8 working days.
The website added, “The loans are processed without human intervention till sanction and/or disbursement stage. On this platform, MSME borrower is not required to submit any physical document for In-Principle approval. The solution uses advanced algorithms to analyze data points from various sources such as IT returns, GST data, Bank Statements etc.”
With this platform, the loan processing turnaround time has been reduced from 20-25 days to 59 minutes.
A MSME can take loan starting from Rs 10 lakhs to Rs 1 crore, and their rate of Interest starts from 8% onwards. Also the collateral coverage is not mandatory as the platform is directly connected to CGTMSE scheme.
How does this loan approval happens in 59 minutes – check process:
It needs to be noted that, an MSME must have few documents if they want to avail the Rs 1 crore loan. Informations are given below.
1 – GST Identification Number
2 – Income tax returns in XML format
3 – Bank statement for last six months in pdf format
4 – Director/Owners details: basic, personal, educational & ownership details
5 – Inprinciple Approval in 59 minutes
PSBs like SBI, Bank of Baroda, Punjab National Bank, Indian Bank, Vijaya Bank, Allahabad Bank, Andhra Bank, Bank of India, Bank of Maharashtra, Canara Bank, Central Bank of India, Corporation Bank, IDBI Bank, Indian Overseas Bank, Oriental Bank of Commerce, Punjab & Sind Bank, Syndicate Bank, UCO Bank, Union Bank and United Bank of India.
Features of this Rs 1 crore loan in 59 minutes are:
1 The platform is fully compatible with existing banking processes.
2 The MSME can apply for a business loan with multiple banks at one go.
3 It is equipped with the highest level of Information Security.
4 The user banks can create customized loan products as per their credit policy.
5 With GST, ITR, Bank Statement, Fraud Check, Bureau Check etc to ease credit decision making.
6 With CGTMSE integration, the MSME borrower can get a collateral free loan.