New Delhi: Prime Minister Narendra Modi on Friday gave a Diwali gift to the micro, small and medium enterprises (MSME) sector. The PM unveiled 12 initiatives for growth of MSMEs, but the one that stood out was the announcement of a dedicated digital platform to enable MSMEs to secure in principle approval of loans up to 1 crore in just 59 minutes. The initiative is aimed at promoting automation, reducing the lengthy loan approval process and frequent visits to bank branches.

Details of the loan:

The loan amount will be between 10 lakh and 1 crore. The rate of interest (RoI) starts from 8%. After the approval in principle of the application, the loan amount will be disbursed in 7-8 working days.

There is no mandatory requirement for collateral as the online portal is directly connected to the Credit Guarantee Fund Trust for Micro and Small Enterprises scheme.

For registration, the borrower does not need to make any payment. A borrower whose proposal matches the products of lenders and who wants to receive an approval in principle will be required to make a nominal payment of 1,000 plus applicable taxes.

There is no fee for the registration, but once the applicant’s proposal matches the bank’s products, the borrower will have to be submit a fee of 1,000 plus taxes.

Documents you require:

Bank account details: A six-month bank statement is required to be submitted in PDF format.

e-KYC paper: A digitized version needs to be uploaded.

Income tax details: Income tax returns for three years are required in XML format. Income tax codes and e-filing details are are also required.

GST details: The applicant will be asked to provide his GST ID username and password.

Ownership details: Applicants will be required to furnish ownership papers of their ventures. Applicants will also be required to furnish personal and educational details.

Step-by-step guide for registration and approval:

1. Go to official website

The applicant will have to go to the official website, www.psbloansin59minutes.com. First, complete the sign-up process. Type in your name, email-id and mobile number. After this, click “Get OTP".

2. OTP

Type the OTP sent to your number. Tick the ‘I agree..’, box then click ‘Proceed’.

3. Basic questions

You will be prompted to answer a few basic questions on the next screen. After ticking all the boxes, select “I am a registered MSME and I agree with the above selected point’ and click ‘Proceed’.

4. GST details

On the next screen enter your GST details, like number, username and password. Next, you can provide your tax returns in XML format or login with your ITR details like PAN and date of incorporation.

5. Bank statements

You have two options: either you can upload bank statements or log in with your netbanking credentials. You will be asked about the directors’ details. Fill the company’s address and then proprietor’s details.

6. Purpose of loan

One last step: Furnish the purpose of your loan. Fill the details of previous loans you may have taken.

7. Select the bank

Among the given list of banks, select the bank through which you want your loan amount to be processed.

8. Convenience fee

Pay the convenience fee of 1,000 plus taxes.

9. Done

Once the fee is paid, you can download your approval letter.

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