Friday the 2nd November 2018 has become a historic day for MSMEs as the honorable Prime Minister Narendra Modi announced business loan of 1 crore in just 59 minutes.

 

Prime minister Mr. Modi launched business loans up to Rs. 1 crore for the medium, small and micro enterprises (MSME) sector and mentioned it as a ‘Diwali Gift’ for budding entrepreneurs. While announcing the loan scheme, he mentioned that by the time the business owners commute to their work, their loan will be approved.

Availing a business loan for small business has always been a truly cumbersome process. It took several rounds of banks, submitting piles of documents, come across a number of interviews and above all the submission of collateral. To the relief of MSMEs, all those hassles have become the worries of past. The new generation business loans are as easy and hassle-free as a personal loan.

Here is How to Avail 1 crore MSME Business Loan in 59 Minutes

The government with the collaboration of Small Industries Development Bank of India (SIDBI) has launched a portal through which one can apply for a business loan online. It provides one with 10 simple steps to follow which will make you get your loan amount within an hour. Here are the steps which are to be followed.

Step 1

Register: Enter with your name, email address and a mobile number which will make you receive an OTP to complete the registration.

Step 2

Answer Simple Questions: Once you are registered some simple questions will be asked which you are to answer in ‘yes’ or ‘no’. The questions on this page will be related to your business. After answering the questions you are to click the ‘proceed’ button.

Step 3

GST Details: On the next step, you are to provide the GST details of your business such as GST number, username, and password.

Step 4

Provide Your Tax Information: In this step, the loan aspirant has to provide the tax returns of your business in ‘xml format’. The other way of completing his step by login with your income tax returns (ITR) credentials — your pan and date of incorporation.

Step 5

Bank Details: The fifth step is providing bank details by uploading the latest bank statements. One can use internet banking for the same purpose.

Step 6

Company Details: After the bank details, you are to provide detailed information about your company such as the physical address, property details, details of the board of directors etc.

Step 7

Loan Details: Now it comes to the loan details. On this page, you are to provide loan the desired loan amount, the purpose of the loan and details about the collateral if you want to upfront.

Step 8

Choose Your Bank: The next step is to choose your most preferred bank among the listed 21 financial institutions. Your business loan application will be forwarded to your preferred bank.

Step 9

The Convenience Fee: A business loan applicant has to pay a convenience fee up to Rs. 1000 plus GST to process the loan.

Step 10

Download The Approval Letter: The last step of the process is downloading the approval letter. Once you pay the convenience fee, your approval letter will be ready for downloading. But mind the fact that getting the approval letter never mean that your loan has been disbursed. The bank may reach you for further inquiries regarding the loan.

By clicking the link below you will be redirected to the website through which you can apply online for a MSME loan:

https://www.psbloansin59minutes.com/signup?ubr4ju=dw5kzwzpbmvk&ykn3ra=dw5kzwzpbmvk

 

Some More Information on The Scheme

PM Modi announced 11 more policies to boost the small and medium enterprise along with the business loan in 59 minutes. The cherry on the top of this scheme is 2% of interest subvention for the GST registered businesses. The website to apply for the loan offers an automated processing of the loan. Unlike the traditional business loans, a collateral or loan security is not mandatory. One can avail a loan amount from Rs.10 lakh to Rs.1 crore. The interest rate for this type of business loan starts at 8%. One can avail a collateral free business loan through this scheme as these loans are connected to the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme.  

This business loan gives additional benefits to businesses who are a regular and honest taxpayer. The honorable prime minister announced that when a business will file its GST returns, the website will ask them if they want a loan. If the entrepreneurs opt for ‘yes’ option, they will be redirected to the loan portal. Moreover, the 2 percent interest rebate is the added advantage one can enjoy.

Here Is What You Need To Apply For the Loan

  • GST identification number (GSTIN), GST user-id & password
  • Income tax E-filing password & date of incorporation/ birth or ITR for last 3 years in xml format
  • Current a/c – Net banking: username & password or bank statement for last 6 months in pdf format
  • Director/partner/proprietor details: basic, personal, KYC, educational details & ownership in the firm
  • Convenience fee Rs.1000 + GST on in-principle approval.