The year 2018 promises to end with a bang for the long-beleaguered medium, small and micro enterprises (MSME). Prime Minister Narendra Modi has launched a support and outreach plan to improve the profitability and viability of MSMEs in light of the recent setbacks the sector has faced. This includes a highly publicized ‘1 crore loan in 59 minutes’ promise that provides easy credit and liquidity to small enterprises.
The fully automated digital platform set up for the purpose is simple and intuitive, and instructions are easy to follow. You can get loans from ₹10 lakh to ₹1 crore on the portal. An interest of 8% will be levied and there is no need for any collateral security. You can expect the bank you chose to disburse the loan in about 5-7 working days. So if you want to use this opportunity to get financial assistance for you business, here are a few things you need to know.
The application for the loan can be done on the dedicated government website that has been specially launched for this purpose, https://www.psbloansin59minutes.com/home. Before you log in to the website it is important to have the following documents on hand;
- GST Identification Number, ID username and password
- eKYC details that need to be uploaded on the site
- Your company PAN details including date of incorporation
- Income tax returns details of 3 years which need to be uploaded in XML format, e-filing details are also required
- Net banking username and password, or bank statement of last 6 months to be uploaded in PDF format, and
- Ownership details
Once you have got all the necessary documents ready, you can get down to applying for the loan. Here is a guide to get it done easy and quick.
Log in to https://www.psbloansin59minutes.com/home. Sign up using your name, mail ID and mobile number. You will have to verify your account using the OTP sent to your mobile number.
Next, you will have to check boxes, Yes or No, for a few routine questions, and then select ‘I am a registered MSME’ and proceed.
Next, you have to fill in the all-important GST details and then upload your tax returns in XML format. Alternatively, you can also log in using your ITR details or e-filing credentials.
You can upload bank statement of the past 6 months or log in using net banking credentials. This is primarily to check your credit history and financial stability.
Moving further, you need to provide details of the company directors or ownership details. If there are multiple directors, do make sure that you have PAN and banking details of individual directors ready with you.
Furnish the details of loan you are applying for, including amount and purpose. You also need to give more details regarding the type of your business, security and previous/ongoing loans.
There is a list of stakeholder banks from where you can choose to apply for the loan. Check the appropriate box and your proposal will be sent to the bank of your choice.
Pay a processing or convenience fee of ₹1000 +taxes and your in-principle loan approval form is ready to be downloaded. It is easy and simple as that!
Please remember that this is in-principle approval and your bank may ask you for more documents or details to process the loan. So if you are an MSME in need of working capital, do ensure you check out this new opportunity.
The MSME support and outreach programme has several initiatives lined up to increase ease of doing business. Ensure that you take advantage of this opportunity, get all the help you can from the government and take your business forward.