The scheme of quick business loans, i.e., PSB loans in 59 minutes will encourage India more to be self-reliant. On the auspicious day of Diwali on November 2, 2018, Prime Minister Shri Narendra Modi introduced a small gift for the MSMEs (Micro Small and Medium Enterprises) in India. India’s government has inaugurated a fast and easy business loan portal for people who want to expand their existing business.
Under this scheme of PSB loans in 59 minutes, MSMEs can avail credit sum of Rs 1 lakh to Rs. 5 crore within less than 59 minutes from non-banking financial companies, public sector banks, and private sector banks. To fulfill the increasing demand of micro and small enterprises, five public sector banks came together i.e., State Bank of India, Union Bank of India, Oriental Bank of Commerce, Corporation bank and Andhra Bank and finalised to extend in-principal approval of loan up to Rs 5 crore under “PSB loan in 59 minutes” scheme.
The PSB loans will be approved by these banks only. And recently, Yes Bank also joined the “PSB Loans in 59 minutes” scheme. Small Industries Development Bank of India (SIDBI) led the PSB council to provide easy and quick loans recently joined by Yes Bank. The SIDBI consortium focuses on uplift business opportunities in the MSME sector, which has faced dire consequences due to the Covid-19 pandemic.
According to the latest news, more than 50,000 individuals have got in-principle permission, and more than 27000 propositions have been allowed until March 31, 2019.
The PSB portal works through very high algorithms that merge information from the income tax department, bank statements, GST, fraud, and bureau check with others and automatically decide with top-notch information security levels. This PSB portal is connected to Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme, when the applicant submits his loan application, the portal applies its algorithms and then analyses the data and decide’s the credit amount than can be allowed and this all is done in 59 minutes.
What are Public Sector Bank/PSB loans in 59 minutes?
Public Sector Bank loans or PSB loans in 59 minutes are an online portal, which allows entrepreneurs to apply for business loans with an interest rate which starts from 8.50%. This decision was taken to simplify the MSME Business and assist the self-employed business model in India by shrinking the loan consent process and long queues at the bank. PSB Loans in 59 minutes seeks at approving of business credits in 59 minutes, thus reducing it remarkably from a huge 30-day long process and expected to be pay-out in 7-8 working days if permitted.
Eligibility criteria for PSB loan:
Businesses existing from a long time should be GST, IT compliant with bank statements of six months.
PSB loan is decided on some of the following factors-
- Revenue from the business
- Capacity of the borrower
- Previous credit provisions
- Loan repayment
- And other factors established by the fellow banks in the PSB scheme
Benefits of PSB loans in 59 minutes
- Interest rate– Rate of interest for loans from PSBs begins from 8.50%
- Less paperwork– With the initiative of PSB loans in 59 minutes, total process of the loan of a small business for MSMEs has become quite easy, quick, and inconvenient, requiring less documentation because all work is done online.
- Loans from Rs 1 lakh to Rs crore– PSBs provide loans from Rs 1 lakh to Rs 5 crore to any business and according to their revenue and repayment capacity.
- Use of Technology– PSB loans in 59 minutes is an online portal connected to the income tax return, GST, and checks any other frauds and does not need human help in the process; that’s why it is advance hassle-free. Human intervention is needed only at the time of loan pay-out.
- Multiple bank involvement- In PSB loans, there are six banks until date, which makes it easier as the individual can apply for a single business loan at many banks.
- Secure Information– High level of security is used to protect the user data as provided for loan procurement. The complete data given by an individual is safe.
- Integrated facilities– The portal is integrated with facilities like GST, ITR. Banks statements to make it hassle-free and don’t need much paperwork.
Documents require for a loan
- GSTIN and GST username
- Information of income tax
- Bank statement of six months
- Information for the loan required
- E-KYC docs of applicant
PSB loans in 59 minutes are basically aimed at automatic loan approval for MSME businesses quickly and easily where the applicant is given different bank options from whom he wants the loan. And with all this, Aatmnirbhar Sena stands with the new upcoming entrepreneurs to help them reconstruct the business and empower them and their businesses with affordable short-term and long-term loans.
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