Apply for MSME/PSB Loans in 59 Minutes – All You Need to Know

Overview

Are you a Micro, Small or Medium Enterprise (MSME) owner seeking swift access to business funding? The 59 minutes loan scheme, also known as the 59 Minutes Public Sector Bank (PSB) Loan or MSME loan scheme in 59 minutes, enables you to get in-principle approval for a collateral-free business loan up to ₹5 crore in under an hour. This transformative initiative leverages technology to simplify and fast-track credit access for MSMEs, empowering them with timely capital to operate smoothly, seize opportunities and grow. Let’s dive into how you can apply for a 59 minutes loan and the key features of this MSME loan facility.

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.

Understanding the 59 Minute MSME Loan Scheme

The 59 minute loan yojana is a dedicated government scheme to provide MSMEs with loans up to ₹5 crore in a quick and hassle-free manner. It aims to address the credit gap faced by small businesses due to lack of collateral security or credit history. Under this scheme, MSMEs can apply for a GST loan in 59 minutes through a consortium of public sector banks via the 59 minutes loan portal.

The portal leverages advanced algorithms to appraise the applicant’s creditworthiness by analyzing GST returns, IT returns, bank statements and other business data. This enables swift loan approval without the need for branch visits or extensive paperwork. The scheme covers term loans for business expansion, purchasing equipment/machinery, and working capital loans to fund operational expenses.

MSME Loan Eligibility Criteria

To avail a 59 minutes loan, your enterprise must fulfill the following MSME loan eligibility norms:

• Qualify as a Micro, Small or Medium Enterprise as per the MSMED Act
• Be an existing business with GST registration and IT compliance
• Have minimum 6 months of bank statements and GST returns
• Demonstrate good repayment capacity and revenue potential
• No minimum business vintage required for loans up to ₹10 lakh
• Loans above ₹10 lakh require 1 year ITR and 6 months bank statements
• Non-GST registered businesses assessed based on income, existing liabilities

59 Minutes Loan Details at a Glance

Here are the key features and terms of loans for MSME under the 59 minute loan scheme:

Loan Parameter	Details
Loan Type	Secured/Unsecured Business Loans, Working Capital
Loan Amount	₹10 lakh to ₹5 crore
Interest Rate	From 8.50% p.a. onwards (2% rebate for GST-registered firms)
Processing Fee	0.1% to 6% of sanctioned amount
Repayment Tenure	1 to 15 years
Collateral	Largely collateral-free, bank may seek security for larger loans
Loan Purpose	Business expansion, capital investment, operational expenses

Documents Required for MSME Loan

Keep the following documents handy to apply for a 59 minutes loan:

• Completed online application form with photos
• KYC documents of promoters and business
• GSTIN details – GSTIN number, username
• Income tax returns for last 3 years
• Audited financial statements for 2 years
• 6 months bank statements (up to 3 accounts)
• Proof of business address and continuity
• Additional documents as requested by lender

5 Simple Steps to Apply for a 59 Minutes Loan

Follow this step-by-step guide on how to apply for MSME loan via the 59 minutes loan portal:

1. Register on the PSB Loans in 59 Minutes portal with your personal and business details. Verify the OTP received.
2. Fill out the loan application form online. Provide your GST details, ITRs, 6 months bank statements, and partner/director information.
3. Upload the required documents in a clear digital format – KYC, business registration proof, financials, address proof.
4. Select your preferred bank and branch from the list provided to process your 59 minute MSME loan.
5. If your application meets the lending criteria, you will receive in-principle approval within 59 minutes. Pay the ₹1,000 + GST fee. The bank disburses the loan in 7-8 working days after verifying the documents.

Benefits of the 59 Minute MSME Loan Scheme

The 59 minute loan yojana offers several advantages that make it an attractive financing option for small businesses:

• Swift loan approval within 59 minutes for amounts up to ₹5 crore
• Minimal documentation and paperwork involved
• Collateral-free loans, making credit accessible to new-age businesses
• End-to-end digital process – online application, document upload, automated credit appraisal
• Dedicated web portal integrated with GST, ITR, bank statement data for quick processing
• Apply to multiple partner banks without physically visiting the branches
• Nominal convenience fee of ₹1,000 + GST for loan processing
• Speedy disbursal of funds within 7-8 working days of approval
• Empowers MSMEs with timely credit to efficiently manage cash flows and grow

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.

Conclusion

The 59 minute MSME loan scheme is a game-changer in the lending landscape, leveraging digital processes to drive speedy and hassle-free credit for small businesses. By enabling in-principle approval for MSME loans up to ₹5 crore in under an hour, it provides a vital financing lifeline for enterprises to manage working capital, expand operations, upgrade technology or fund capital investments.

The loans come with affordable interest rates starting from 8.5%, flexible repayment tenures of 1-15 years, and minimal collateral requirements. If you’re looking for quick business loans to fuel your MSME’s growth and success, consider applying for a MSME Loan, Business Loan for Women or Small Business Loan from Flexiloans. With their simple online process, tailored solutions and fast loan disbursal, Flexiloans can be your trusted partner in securing timely funds for your enterprise.

FAQs

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.