What Is a 59 minute loan yojana- Banks disbursed nearly Rs 70,000 crore MSME loans so far

Micro, Small, and Medium Enterprises (MSMEs) require continuous funding for various short-term and long-term activities. These activities can include paying office rent, employee salaries, business expansion, and marketing. To fulfill these capital needs, MSME business owners can either use their own capital or opt for an ideal loan product. Among the available options, the 59 Minutes MSME Loan is a highly beneficial choice.

What Is a 59 Minutes MSME Loan?

The 59 Minutes MSME Loan is a government initiative designed to provide immediate capital to MSMEs. This scheme allows MSME business owners to obtain in-principle approval for a business loan of up to Rs 5 crore within 59 minutes from a consortium of Public Sector Banks (PSBs).

Banks Included in the Consortium

The consortium includes:

• Punjab and Sind Bank
• Indian Overseas Bank
• SBI Bank
• IDFC Bank
• Kotak Bank
• IndusInd Bank
• UCO Bank
• Bank of Baroda
• Central Bank of India
• Canara Bank
• ICICI Bank
• PNB
• Bank of Maharashtra
• Union Bank
• Yes Bank
• Saraswat Bank
• Federal Bank
• SIDBI

Reasons for Launching the 59 Minutes MSME Loan

1. Banking Service Aggregation: Unifying banking services for MSMEs under one scheme.
2. Comprehensive Credit: Allowing MSMEs to avail of various loans, including infrastructure and automobile loans, under one scheme.
3. Increased Credit Levels: Recognizing MSMEs as the backbone of the Indian economy and increasing their credit access.
4. Positive Change: Simplifying the credit industry and promoting financial inclusion.

Benefits of the 59 Minutes MSME Loan

1. Immediate Capital: Ensures quick loan approval within 59 minutes of application.
2. Minimal Paperwork: Simplified application process requiring minimal documentation.
3. Positive Contribution: Eases the challenges faced by MSMEs in obtaining loans, thus contributing positively to the economy.
4. Loan Book: Public sector banks have seen a significant increase in their loan books due to the quick approval process.

Eligibility Criteria

Applicants must meet the following criteria:

• Qualify under the MSMED Act, 2006.
• Existing businesses with GST Registration.
• IT compliant.
• Possess 6 months’ bank statements.

Eligibility is also based on:

• Repayment capacity.
• Income or revenue-generating possibilities.
• Pre-existing loans or liabilities.

Loan Details

• Type of Loan: MSME Loan/Working Capital Loan
• Interest Rate: From 8.50% p.a. and above
• Loan Amount: Rs. 10 lakh to Rs. 5 crore
• Repayment Tenure: 1 year to 15 years
• Processing Charges: 0.1% to 6% of the sanctioned loan amount
• Advanced Technology: Rs. 1000 + GST for digital approval

Documents Required

• Completed application form with passport-sized photos
• Business details (GSTIN, GST User Name, Proprietorship/Partners/Directors details)
• Latest 3 years’ Income Tax Returns (ITR) in XML format
• Last 6 months’ Bank Statements (PDF format) for up to 3 accounts
• E-KYC Documents
• Additional documents as required by the lender

Steps to Register

1. Visit the official site PSB Loans in 59 Minutes and click on “Apply Now”.
2. Fill in personal details and click on ‘Send OTP’.
3. Enter the OTP received on your registered mobile number.
4. Agree to the terms and conditions.
5. Click on ‘Proceed’.
6. Generate a password for future reference.

Steps to Apply

1. Log in to the official website using your credentials.
2. Select ‘Business’ for MSME Loan and click on Proceed.
3. Enter PAN card details and click on ‘Proceed’.
4. Furnish details about GST, Tax returns (XML format), and bank statements.
5. Upload ITR, bank details, business details, and existing loan details.
6. Enter OTP to verify your email address.
7. Choose your preferred bank and branch.
8. Receive in-principle approval from the desired bank.

IIFL Finance MSME Loan

IIFL Finance offers collateral-free MSME business loans with attractive interest rates, instant approval, and minimal documentation. While IIFL Finance does not participate in the 59 Minutes MSME Loan scheme, it offers comparable benefits.

FAQs

Q1: Can I take a 59 minutes MSME loan from IIFL Finance?

• No, only Public Sector Banks offer this scheme, but IIFL Finance provides quick MSME loans.

Q2: Does an MSME loan interest attract GST?

• No, businesses with a yearly turnover of less than Rs 6 crore are exempt.

Q3: Do I need to pledge collateral for an MSME business loan from IIFL Finance?

• No, collateral is not required.

For more information, visit PSB Loans in 59 Minutes.