The government has recently announced a quick loan scheme for MSME Sector, in which they claim to approve the loan in less than an hour. They have launched a dedicated portal to apply for the loan: https://www.psbloansin59minutes.com

Salient features

  • MSMEs loan would be applied to SIDBI & 5 PSU Banks
  • Entire application process in online, i.e. the applicant would not be required to visit the bank until the sanction or disbursement stage.
  • MSMEs can avail business loans from Rs 1 lakh to Rs 1 Crore
  • There are no registration/application fees.
  • No Collateral is required

Eligibility Criteria & Documents/Information

An applicant having an existing business should be a GST registered dealer and must have met all GST and Income tax compliance

Following would be required to apply under the scheme”

  1. GST Details: GST Identification Number (GSTIN), GST User Name and GST Password
  2. Income Tax Details: Either Upload latest 3 years ITR in XML format

or

Provide PAN, Date of Birth/ Incorporation, Password of Income Tax Account on

www.incometaxindiaefiling.gov.in

      3. Net Banking Details: Either upload Bank Statements for last 6 months in PDF format

(Borrower can upload Bank Statements for Maximum 3 Bank Accounts on the Portal. Please upload bank statements having Major Business Activities)

     4.Details of Directors/Partners/Proprietor: Basic, Personal, KYC, Educational details & ownership in the firm

The loan under the scheme can be applied at the portal in a quick & easy process by registering into the portal. On successful application of the loan, you will receive a In-Principle approval. The branch you have sent your proposal to will contact you shortly for due diligence proceedings. In case there is no correspondence from the lender’s side, you can visit the selected branch with a copy of the In-Principle Approval Letter.

However, one should remember that this is sanctioning of a loan and not disbursal. Banks may ask for further clarification, documents to process it further. The In-Principle approval is given based on the data provided by the borrower. After receiving the In-Principle Approval, the lender will conduct a thorough due diligence and will take a call on whether to Sanction/Disburse the proposal. The final decision will be at the lender’s discretion.

(The author is a CA in practice at Delhi and can be contacted at: E-mail: abhinandansethia90@gmail.com, Mobile: +91-9811741451))

Author Bio

Qualification: CA in Practice
Company: Abhinandan Sethia & Associates
Location: west delhi, New Delhi, IN
Member Since: 26 May 2018 | Total Posts: 7
I am a practicing Chartered Accountant at Abhinandan Sethia & Associates and has worked with Ernst & Young LLP and BDO India LLP. previously in Risk based Internal Audits, Risk Management, business process reviews, Fraud Investigations etc. amongst other services across a range of industries View Full Profile

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One response to “Procedure to apply for MSME loans up to Rs 1 crore in 59 minutes”

  1. Prabhu industries says:

    Sir, we have barrowed bank loans up-to banker
    Norms. Is it possible to get more. Of course we have heavy
    Turnover.My gst no 37Ajlpk6238L1ZN.

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