Apply for MSME/PSB Loans in 59 Minutes – All You Need to Know
Aug 19, 2023
If you are a micro, small, or medium enterprise (MSME) searching for an easy and simple loan, the 59 Minutes Public Sector Bank (PSB) initiative can be of immense help to you. The Small Industrial Development Bank of India (SIDBI) created this fintech platform to enable MSMEs to apply for online loans and get in-principle approvals in as little as 59 minutes. This allows you to borrow up to Rs 10 crores from several public and private sector banks.
This plan may help you fulfil your business requirements with little paperwork and trouble, whether you need a term or working capital loan. Read on to understand the PSB loans in 59 minutes scheme, including the advantages, interest rates, eligibility, procedure, and the documents required.
Banks Participating in the 59-Minute Loan Scheme
Here is a look at the list of banks participating in this scheme:
|1.||Small Industries Development Bank of India|
|2.||State Bank of India|
|3.||Punjab National Bank|
|4.||Bank of Baroda|
|5.||Bank of India|
|6.||Bank of Maharashtra|
|8.||Central Bank of India|
|10||India Overseas Bank|
|11.||Punjab & Sind Bank|
|15.||Kotak Mahindra Bank|
|16.||IDFC First Bank|
Reasons Why the PSB Loan in 59 Minutes Came into Effect
The 59 minutes loan scheme seeks to simplify and improve loan accessibility for MSMEs. Through it, the government is attempting to empower MSMEs by streamlining banking services, providing extensive loan alternatives, and fostering financial inclusion, recognising their critical role in India’s economy.
The top reasons why this scheme has been introduced are as follows:
- Banking Service Consolidation
One of the key objectives for introducing the 59 minutes loan scheme is to make it easier for MSMEs to fulfil their financial requirements. Previously, MSMEs had to contact many lenders for various loans and cope with procedural complexities and delays. The 59 minutes loan scheme has brought together a number of banks on a single platform, making it easier for MSMEs to access various financial services at competitive rates and without too many procedural formalities.
- Making Informed Decisions
Borrowers become aware of the comparative benefits of various loan offers offered by different lenders thanks to the 59 minutes loan scheme. They can make the right decisions about their loan requirements because of an insight into the various offers of financial organisations. Due to the competition, banks are driven to enhance their offerings to attract more borrowers.
- Increased Credit Availability
Recognising the importance of MSMEs in boosting economic development and creating employment, the Indian government intends to increase financing options for small businesses. The government aims to empower MSMEs by making finance more accessible to them via the 59 minutes loan, allowing them to meet the running costs of their enterprises, expand operations, and contribute more effectively to India’s economic development.
- Flexible Repayment Options and On-Time Funding
The quick loan approval and flexible repayment choices are some of the most appealing features of the 59 minutes loan. This scheme is meant to approve the loan application in 59 minutes, which is much shorter than the time taken for a typical lending procedure. Furthermore, MSMEs may choose payback periods that best match their business cycles, reducing loan repayment pressure and supporting their long-term growth and development.
- Strengthening the Formal Credit Sector
The Indian government aims to bolster credit availability to small businesses by creating innovative and inclusive programmes such as the 59 minutes loan. The initiative seeks to reassure business owners about the efficiency and credibility of Indian banks, encouraging them to depend more on official financial institutions for their lending requirements. This, in turn, paves the way for financial inclusion and the expansion of the formal credit sector.
How is a PSB Loan in 59 Minutes Different from Instant Online Personal Loans?
Here are some essential distinctions between a PSB loan In 59 minutes and an instant online personal loan:
|Criteria||PSB Loans in 59 Minutes||Instant Online Personal Loans|
|Eligibility||Only GST-registered MSMEs can apply||Anyone with a regular income and a good credit score can apply|
|Loan Amount||Up to Rs 5 crores||Usually up to Rs 5 lakhs|
|Interest Rate||Varies from 12.75% to 44% p.a. depending on the risk profile of the borrower and the selected tenure.||Varies from 10.5% to 36% p.a. depending on the lender, loan amount, credit score, and repayment capacity of the borrower.|
|Processing Fee||0.1% to 6% + GST.||Usually 1% to 5% + GST.|
|Collateral||Collateral is not necessary for this loan. The scheme integrates with CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises), which offers collateral-free loans.||Collateral is not necessary for this loan.|
|End-Use||You can utilise the loan for various business purposes, including working capital, expansion, infrastructure, technology upgrade, and more.||You can utilise the loan for any personal goal such as medical emergency, travel, wedding, education, debt consolidation, etc.|
|Disbursal Time||The scheme claims to provide digital approval in 59 minutes and loan disbursal within 7-8 working days after submitting the required documents.||Some lenders claim to provide instant approval and loan disbursal within 48 hours after the verification of documents.|
Benefits of Taking PSB Loans in 59 Minutes
There are many advantages of this scheme; let’s discuss some of them in brief:
- Immediate Capital
The MSME loan in 59 minutes provides fast access to money, allowing you to get critical financing without waiting for loan approval for extended periods. Lenders under this scheme process loan applications in 59 minutes or less, ensuring that your enterprise can continue to operate, grow and expand seamlessly.
- Simplified Application Process
The 59 minutes loan application procedure for MSMEs is hassle-free, requiring little documentation. As public-sector banks have gone online, entrepreneurs need to fill up simple information and complete KYC formality, minimising the headaches associated with complex documentation.
- Versatile Loan Options
You may benefit from the 59 minutes loan scheme’s several offerings including working capital and term loans. This adaptability enables you to meet financial requirements, whether managing day-to-day operations or investing in long-term development initiatives.
- A Win-Win Situation
The initiative of MSME loans in 59 minutes has resulted in significant growth in the loan books of Public and Private Sector Banks (PSBs). MSMEs increasingly seek loans via participating banks because they appreciate the rapid, cost-effective and efficient loan approval procedure.
- Time Efficiency in Credit Disbursement
This 59 minutes loan scheme has reduced the time it takes to approve financing from days to 59 minutes, giving businesses much-needed ease and confidence. Most banks distribute the sanctioned amount within eight working days after giving in-principle approval.
Implications of the 59 Minutes Loan for the MSME Sector
- In-Principle Approval
Entrepreneurs and retail loan seekers who get in-principle approval via the 59 minutes loan portal receive a valid reference letter for future loan applications. This quick approval increases borrowers’ belief in their creditworthiness, making it easier for them to obtain loans in the future.
- Active Government Support
The government’s vigorous promotion of credit finance for the MSME sector with a 59 minutes loan portal has helped businesses realise their commercial goals. You can obtain much-needed money to expand operations, enter new geographic markets, and meet growth goals with this innovative scheme.
- Improving Competitiveness Through International Standards
The 59 minutes loan portal conforms to international best banking service standards, increasing the competitiveness of Indian goods globally in the manufacturing and services sectors. Access to fast and efficient funding enables MSMEs to enhance production, quality, and global competitiveness.
- Simplified Paperwork
The loan application process’s incredibly streamlined documentation helps small business owners unfamiliar with the complexities of dealing with large public sector banks. This paperwork streamlining lessens administrative constraints, making the process more accessible and user-friendly for MSMEs.
- Accelerating Credit Growth in Retail Businesses
The popularity of the 59 minutes loan portal has fueled credit development in critical retail sectors, levelling the playing field for small businesses against corporate behemoths. MSMEs now have an equal footing in the market to expand and compete, supporting equitable economic development.
Application Process for the 59 Minutes Loan
The following are the steps to apply for the 59 minutes loan scheme:
- Step 1: Register on the portal using your name, phone number, and email address.
- Step 2: The next screen will ask you a few basic questions, to which you must react with a ‘yes’ or ‘no’ by choosing the respective option box. To go to the next stage, click ‘proceed’.
- Step 3: Provide the necessary information such as GST/Sales data, income tax return information, bank statements, director information, personal information, and company address.
- Step 4: Select the purpose of your loan and enter information about any previous/current loans taken out by your business.
- Step 5: Choose from various banks and loan offerings that meet your requirements.
- Step 6: Pay the Rs 1,000 convenience charge plus taxes for approval.
- Step 7: Download your approval letter, which is subject to additional due diligence by the loan provider’s bank.
- Step 8: Submit the necessary paperwork to the chosen bank and get your final sanction in around a week or eight days.
How Does the MSME Loan in 59 Minutes Complement the Financial Health of Small Businesses?
- Streamlined Loan Processing
The 59 minutes loan scheme seeks to simplify and speed up the loan approval procedure for MSMEs. MSMEs acquire quick funding to fulfil their financial requirements by minimising the time and effort necessary to secure a loan. This, in turn, assists them in meeting working capital needs, investing in growth, and upgrading technology and equipment.
- Enhanced Cash Flow Management
MSMEs better manage their cash flow if they can easily access loans via simplified procedures. The timely availability of cash allows businesses to fulfil their commitments such as paying suppliers, and completing orders, lowering the risk of default.
- Reduction In Informal Borrowing
MSMEs, particularly smaller ones, often depend on high-interest-rate informal lending channels. The availability of official loans at competitive interest rates discourages informal borrowing, which often leads to debt traps and raises the likelihood of default.
- Technological Advantage
The 59 minutes loan scheme uses technology integration and data analysis to determine loan eligibility. This enables banks to make more informed lending choices, ensuring that credit is made available to financially sustainable MSMEs.
- Improved Credit Culture
The scheme seeks to develop a credit culture among MSMEs by encouraging prudent borrowing and prompting timely repayment. Better credit discipline promotes a more stable financial environment and reduces the risk of non-performing assets.
How Does the MSME Loan in 59 Minutes Work?
The scheme is a digital lending platform launched by the Indian government to provide MSMEs with rapid and easy access to financing. To apply for the loan, an MSME must first visit the official site and give the relevant information about their firm and finances.
The 59 minutes loan portal evaluates the applicant’s creditworthiness using powerful algorithms and data analytics. Once the review is completed, the applicant receives an in-principle approval letter, which can be shown to any participating bank to finalise the loan procedure.
What are the Key Features of PSB Loans in 59 Minutes?
MSMEs are critical to driving economic development and creating job opportunities in India. Accessing timely and hassle-free funding, on the other hand, has long been a barrier for small enterprises. The Indian government announced the PSB loan in 59 minutes to solve this problem. This digital lending platform intends to provide MSMEs with easy and transparent financial access. Let’s take a closer look at its essential features:
- No Human Bias
Human biases have often hampered conventional lending, resulting in uneven access to financing for eligible enterprises. PSB loans in 59 minutes tackle this issue by using an automated and algorithm-based appraisal approach.
By eliminating human intervention, the technology ensures that loan applications are assessed solely based on objective factors such as credit history, financial performance, and business stability. This results in a fair and impartial lending procedure in which your creditworthiness is the deciding factor for loan acceptance.
- Reduced Documentation
The lengthy paperwork conventional banks require has been a significant source of frustration for MSMEs seeking financing. PSB loans in 59 minutes automate this procedure by connecting with many data sources and credit bureaus. This allows the 59 minutes loan portal to access and authenticate information electronically, doing away with the requirement for physical documentation. Consequently, the documentation load is significantly reduced, and firms may apply for loans without difficulty, saving time and effort.
- Simple User Experience
The user experience of any digital platform is crucial and the 59 minutes loan portal shines in this respect. The site intends to be user-friendly and smooth, guiding you through each stage of the loan application process. The design is simple and uncomplicated, allowing non-technical entrepreneurs to browse and quickly finish their applications. This improved user experience makes loans more accessible to MSMEs and encourages more enterprises to explore financing alternatives.
- Real-time Processing
In the digital age, businesses anticipate speed and efficiency in all operations, including loan approvals. With its real-time processing capabilities, the 59 minutes loan portal meets this expectation. Within minutes of applying, the automatic review system evaluates the data and delivers an in-principle approval status. This quick processing time is a game changer for MSMEs, enabling them to make intelligent financial choices without being held up.
- Quick Loan Approval
The capacity to give speedy loan approvals is the most crucial advantage of PSB loans in 59 minutes. For MSMEs, fast financing availability may make a difference in tapping business opportunities, expanding operations, or meeting urgent financial demands. Because of the platform’s speedy appraisal process and easy connection with partner banks, you may acquire official loan approvals more quickly, allowing you to capitalise on possibilities sooner.
Eligibility and Documentation Required for a 59 Minutes Loan
The following are the scheme’s criteria:
- Your business must be GST registered.
- You must possess a valid PAN card.
- The business should have a strong credit rating.
You must present the required paperwork to fulfil the eligibility requirements and ensure a smooth application procedure for the 59 minutes loan. The following are the documentation requirements:
- GST Registration Information: You must provide the GST Registration Information, including your GST Username and GST Identification Number (GSTIN).
- PAN Card Details: You must provide valid PAN Card details as part of the application process.
- Bank Account Statements: Submit bank statements in PDF format for the previous six months.
- Personal Income Tax Returns: The loan application requires the most recent Income Tax Return (ITR) for your business type, which could be Form 3, 5, 6, or any other appropriate form.
- Directors/Partners/Proprietor Information: You should provide personal information of the company’s directors, partners, or proprietors, including their name, contact number, email ID, address evidence, and identification proof.
Documents for Business Registration: Submit the necessary documentation depending on the business organisation. These may include:
- The business’s certificate of incorporation
- A partnership agreement for joint ventures
- The sole proprietorship declaration for sole proprietorships.
Comparing the 59 Minutes Loan Scheme with NBFC Loans
Here is a table comparing the 59 minutes loan scheme with NBFC loans based on some key parameters.
|Feature||59 Minutes Loan||NBFC Loan|
|Purpose||Primarily focused on meeting the credit needs of MSMEs to boost their business growth and productivity.||Can serve various purposes, including business expansion, personal financing, consumer loans, education, and more.|
|Interest Rates||The interest rates may be competitive as the government backs the scheme||Interest rates on NBFC loans can vary widely based on the borrower’s credit profile, loan tenure, and other factors.|
|Loan amount||Up to Rs 5 crores||Up to Rs 25 lakhs|
|Approval time||59 minutes||1-2 weeks|
|Convenience||Easy and convenient application process||Easy and convenient application process|
|Government Involvement||The PSB loan in 59 minutes is a government effort to stimulate the development of small and medium-sized businesses, and it is made possible by chosen banks and lending institutions.||NBFCs are private financial organisations not directly associated with the government and incorporated under the Companies Act.|
|Accessibility||Limited to MSMEs, and regional limits may apply depending on the participating banks/lenders.||Individuals, corporations, and other organisations may get NBFC loans in various places, depending on the NBFC’s activities.|
Advantages of NBFC Business Loans
There are many advantages of NBFC business loans if you’re comparing them with the general bank loan. Let’s discuss some of them in detail:
- Flexible Qualifications
The most evident advantage of choosing an NBFC business loan over a common bank loan is flexible qualification criteria. Before issuing business loans, banks often have strict standards. They adhere to a rigorous verification procedure and make substantial demands for supporting evidence when processing requests for business loans.
When granting loan requests from businesses, the qualifying requirements for NBFC business loans are more broad and flexible. They adopt a generous attitude to ensure that their customers may readily acquire NBFC business loan funding.
- Fast Money Transfer
NBFC business loans have significantly more lenient lending restrictions. NBFC business loans need minimum paperwork and have flexible eligibility restrictions. As a result, lending institutions can approve NBFC business loans more quickly. So, you have easy access to funds when you need them.
- Digital Loan Disbursement
Hard copies and actual documents take up very little space in today’s digital age. Most NBFCs have started offering 100% paperless business loans via digital platforms. They have evolved into fintech companies due to the combination of finance and technology. These fintech firms provide business owners access to finance without requiring them to leave their homes or places of work.
You may apply for an online NBFC business loan by visiting the lender’s website or downloading their mobile app. You may submit digital copies of the required papers and the funds will be sent to your bank account within 24 hours.
MSME/PSB loans in 59 minutes provide a fantastic chance for small and medium-sized businesses to borrow rapidly and easily from public sector banks. You may use the website to provide basic information, upload your papers, and get an in-principle approval within an hour. The loans vary from Rs 1 lakh to Rs 5 crores, with competitive interest rates and flexible payback terms.
The 59 minutes loan portal also offers assistance during the application process. By obtaining these loans, MSMEs may enhance their market development, innovation, and competitiveness.
Looking to avail of a PSB loan in 59 minutes for your business? FlexiLoans has got you covered. Discover the ease of using the FlexiLoans platform, which addresses the financing needs of SMEs that often face challenges in obtaining traditional bank loans due to limited credit history, collateral requirements, and lengthy approval processes. Apply today and get immediate cash assistance for your venture!
Q. 1 What exactly is an MSME/PSB Loan in 59 Minutes?
Ans: The MSME/PSB Loan in 59 minutes is a Government of India scheme designed to give Micro, Small, and Medium Enterprises (MSMEs) simple and rapid access to finance. It is a dedicated portal that allows MSMEs to apply for loans up to a certain amount and obtain in-principle approval in as little as 59 minutes.
Q. 2 What is the loan amount available under the PSB loans in 59 minutes scheme?
Ans: The loan amount available under the PSB loans in 59 minutes scheme varies from Rs 1 lakh to Rs 5 crores.
Q. 3 Who can qualify for a 59 minutes loan?
Ans: The 59 minutes loan is available to any firm in the MSME sector and to self-employed and employed individuals.
Q. 4 What are the two most essential papers needed for PSB loans in 59 minutes?
Ans: The two essential papers required for the PSB loans in 59 minutes are GST information and Income tax return details.
Q. 5 Do you have to pay any fees to get a PSB loan in 59 minutes?
Ans: There are no registration costs to avail of the PSB loan in 59 minutes. However, there is a predetermined processing fee for using this government scheme.
Q. 6 Which companies qualify for the PSB 59 minutes loan scheme?
Ans: MSMEs with a valid GST registration, a strong credit score, and financial statements submitted for at least six months are eligible to apply for the PSB 59 minutes loan scheme.
Q. 7 Are the interest rates and payback conditions the same across all banks participating in the 59 minutes loan scheme?
Ans: Interest rates and payback lengths may vary amongst banks participating in the 59 minutes loan scheme. As a result, before concluding the loan agreement, it is prudent to research and evaluate the conditions set forth by the various banks.
Q. 8 Is the PSB loans in 59 minutes scheme only available in particular Indian cities or regions?
Ans: All MSMEs in India have access to the PSB loans in 59 minutes scheme. Applicants from different cities and regions can use the platform’s services if they meet the eligibility criteria and other prerequisites.
Q. 9 How long does it take to obtain funding after receiving in-principle approval for the PSB loan in 59 minutes?
Ans: For the PSB loan in 59 minutes, the actual disbursement of money may take a few days to a few weeks after obtaining the in-principle approval letter, depending on the bank’s internal procedures and the possession of requisite documents.