A Step-by-Step Guide to Get ₹1 Crore MSME Loan in 59 Minutes

Prime Minister Narendra Modi announced several benefits for MSMEs but the one that stood out was the announcement of a dedicated digital platform to enable MSMEs to secure in-principle approval of MSME loans up to ₹ 1 crore in just 59 minutes. The government's website for MSME borrowers offers automated processing of loans that provides approval of loan in less than an hour. The automated, contact-less business loan approvals are currently provided for MSMEs. The MSME loan scheme aims to reduce the lengthy loan approval process and frequent visits to bank branches.

MSME Loan

The MSME loan amount offered will be between ₹ 10 Lakhs and 1 crore. The rate of interest charged on the loan amount starts from 8%. Once the MSME loan is approved, the principle of the application, the loan amount gets disbursed in the bank account within 7-8 working days. There is no collateral required as the online portal is directly connected to the Credit Guarantee Fund Trust for Micro and Small Enterprises scheme. The MSME loan registration does not require the borrower to make any payment. A borrower who is eligible and gets loan approval in principle will be required to make a nominal payment of ₹ 1,000 plus applicable taxes.

Loan Eligibility Criteria

• To be able to avail a loan with ease you need to fulfil the eligibility criteria only then you are eligible for a loan for your business.
• Must be an Indian citizen to be eligible for a business loan.
• The applicant must be a self-employed individual.
• Self-employed individuals between 26 - 66 years are eligible for a Loan.
• The MSME business vintage must be at least 3 years long.

Documents Required For MSME

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

2. e-KYC Documents: A digitized version needs to be uploaded.</li>

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

4. GST Requirements:The borrower has to provide the GST detail like the GST ID username and password.

5. Business Ownership Details:Applicants will be required to furnish documents as proof of ownership of their ventures. Documents related to personal and educational details will also be required.

MSME Loan Registration Process

Step 1: 

Go to the official website at www.psbloansin59minutes.com. First, complete the sign-up process. Provide your name, email address and a mobile number. After this, click “Get OTP" and you will receive and OTP

Step 2:

Tick the ‘I agree..’, box then click ‘Proceed’. Now answer four simple questions such as whether you are registered with GST and have been filing your GST returns regularly and have never defaulted on a loan.

Step 3:

On the next screen fill in your GST details, like number, username and password. Enter your tax returns in XML format or login with your ITR details like PAN and date of incorporation

Step 4:

Provide tax info and upload it in XML format or login with your tax credentials, your PAN and date of incorporation.

Step 5:

Provide bank account details and upload your bank statements or log in with your netbanking credentials. Here you will also be asked about the directors’ details. Fill the company’s address and then proprietor’s details.

Step 6:

Here you have to enter the details of the company directors

Step 7:

Provide all the details of your business. Furnish the purpose of your loan. Fill the details of previous loans you may have taken and any collateral security.

Step 8:

Among the options provided in the given list of banks select the bank from where you want a loan. There are numerous banks that are linked with this website.

Step 9:

Now you will have to pay a convenience fee of Rs 1,000 + GST.

Step 10:

The final step in the process is to download your approval letter.

Applying for an MSME loan is an ideal option for financing business because of its flexibility and affordability. At Finserv MARKETS, you can apply for a business loan for MSME at attractive interest rates for undertaking various business operations. The application process for business loans at Finserv MARKETS is easy with personalized pre-approved offers, instant approvals, and quick disbursal of the loan amount. You can download the Finserv MARKETS App online and get access to fast financing for your business. When applying for a loan, you can do a CIBIL score check and get a detailed Financial Health Check Report (FHCR) for free. This will help you make sure you are eligible for the loan and make the complete loan approval process quicker and more comfortable.