MSME: Digital Loan approval in 59 minutes

To promote MSMEs and smaller enterprises, various banks and financial institutions are offering working capital and business loans. In the present article, let us explore SIDBI (Small Industries Development Bank of India)’s program, which appears to be quite attractive and easy to handle.

SIDBI Program is also remarkable as it offers digital approval of loan in less than an hour, based on the details and documents shared by the MSME on the SIDBI portal : www.psbloansin59minutes.com

Let us proceed:

1. Loan amount: The loan amount can be anything Rs. 1 lac to Rs. 5 crores for business loan.

2. Loan Eligibility: Loan eligibility determined by applicant’s:

• Income/Revenue
• Repayment Capacity
• Existing Credit Facilities
• Any other Factors as set by Lenders.

3. Keep Ready Documents:

• GST details: Registration Number, Username and OTP
• Three years Income Tax details/returns for Term loan, in XML format. One Year ITR for working capital loan, in XML format
• Bank Statement for last 6 months in PDF format, downloaded from your bank
• Details of at least 2 directors/partners/proprietor
• Details related to loan required.

4. Process for loan Application

 Click on psbloansin59minutes.com.

• Register using Name, Mobile Number and Email Id. After getting OTP, tick on the “I agree to Terms and Conditions” and then click on “Proceed”.
• Post registration, the borrower can select funding requirement i.e. for business purpose or for retail.
• Select “Business loan”.
• After selection of fund requirement, provide required details to avail business loan digital approval in 59 minutes.
• Borrowers must pay Rs. 1000+GST for digital approval if their proposal aligns with lenders’ products.

5. Steps to download bank statement through Net Banking

• Login to Net Banking account.
• Net Banking facility of different bank has different procedure to follow for downloading bank statements.
• Though, while downloading bank statements, customers are generally asked to select duration and format of bank statement.
• Select duration such that it constitutes latest 6 months.
• Select “PDF” as format.
• After submitting your request, your bank statement will get downloaded immediately.

6. Points to remember

• Any borrower who has provided negative answer in ITR/Loan repayment related primary questions shall not be able to continue loan application process on the Platform.
• Borrowers without collateral can access business loans through psbloansin59minutes.com under the CGTMSE scheme. However, the lender may still require collateral at their discretion, based on the latest guidelines.
• Borrowers can upload Bank Statements for maximum 3 bank accounts on portal.
• Upload Bank statements having Major Business Activities.
• In case the borrower is not registered Udyam, it can still be eligible for loan.
• On receiving the digital approval, the MSME needs to contact lender with the copy of digital approval
• In case borrower’s proposal got rejected by lender, he/she can select another lender after 15 days of receiving approval letter.
• In case borrower’s proposal is considered ineligible on the platform, the borrower has an option to select a branch to forward his proposal for manual processing.
• In case of the MSME is not GST registered, it can still apply for loan.
• Post digital approval, the loan is expected to be sanctioned/disbursed within 7-8 working days.
• After digital approval, the preferred lender will conduct thorough due diligence and decide on to sanction/disburse/reject the proposal.
• Mudra loans have also same procedure, eligibility and terms and conditions

In case you have any concern and queries or need any support in MSME Udyam registration/ Samaadhan portal/recovery/compliance/loan, you may like to contact us.

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Abhinarayan Mishra, FCA, FCS; KPAM & Associates, Chartered Accountants, Dwarka, New Delhi; +9910744992, ca.abhimishra@gmail.com