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All About Business Loan & MSME Loan

psbloanin59minutes
1 Apr

PSB Loan in 59 Minutes

MSMEs (micro, small, and medium enterprises) are the pillars of the Indian economy, employing a substantial part of the workforce. Yet, these enterprises face a difficult time in raising capital. Generally, banks and non-banking financial institutions (NBFCs) do not readily provide credit.

To solve this problem, the Indian Government, in November 2018, launched the ‘PSB Loans in 59 Minutes’ program. Under this program, MSMEs and individuals can easily borrow business loans ranging from Rs 1 lakh to Rs 5 crores. The best thing about this program is that it only takes 59 minutes to apply for a loan and get it approved.

This guide will tell you everything you need to know about this program, including eligibility requirements, application procedures, loan benefits, and more.

About the Initiative

The Government of India in 2018 launched an online portal called Psbloansin59minutes.com. It was created through an act of Parliament under the Department of Financial Services. MSMEs and individuals can use this platform to get fast and easy loans through 20+ public sector banks, private investors, and NBFCs.

Also Read: Top Facts About PMRY Loan

Advantages of PSB Loans in 59 Minutes

  • The loan is processed in under 59 minutes. From submission to receipt of the approval letter, the entire loan process takes just minutes instead of days or weeks.
  • Loan funds are disbursed within 7-8 days of loan approval.
  • Personal loans and home loans are now available under PSB Loans in 59 minutes, in addition to business loans. Those interested in applying for the loan should go to the portal and fill out the digitised application form.
  • According to the finance department, all loans will be sanctioned by the Small Industries Development Bank of India (SIDBI). Also, 19 PSUs have been enlisted to support.
  • Interest rates differ from one company to the other and are based on credit ratings.
  • With minimal documentation, the whole procedure is simple and hassle-free.
  • The maximum amount of loan that can be taken is Rs 5 crore.
  • Several technological integrations make credit decision-making simpler.
  • It is a one-of-a-kind network that works in tandem with the lenders’ processes.
  • The information posted on the website is held in a safe and secure environment.

Also Read: Everything You Wanted To know About PMEGP Loan

To fulfil the demands of various types of clients, the portal provides the following loan categories:

Loan TypeWho is it For?Minimum Loan AmountMaximum Loan Amount
Business LoanMicro, small and medium enterprisesRs. 1 LakhRs. 5 crores
Home LoansIndividualsNot ApplicableRs. 10 crores
Personal LoanIndividualsNot ApplicableRs. 15 lakhs
Auto LoansIndividualsNot ApplicableRs. 1 crore

Let’s take a deeper look at each of the loan categories provided by PSB in 59 minutes.

Business Loans

The platform provides transparent and quick business loans to assist companies in expanding and meeting immediate financial needs. You may get a business loan for a variety of purposes, including:

  • New outlet or shop opening
  • Plant, machinery and equipment
  • Working capital requirements
  • Technology upgradation
  • Renovation & infrastructure
  • Raw materials or inventory purchase
  • Operational improvements
  • Expansion of business resources
  • And so forth

Also Read: Mudra Loan – Everything You Must Know About

Application process 

The application process is straightforward, and 100% online. The following are the steps to be taken:

  • Visit psbloansin59minutes.com.
  • Choose “apply for business loans” under the drop-down menu.
  • Enter your company’s GST identification number.
  • Upload the most recent tax returns.
  • In PDF format, submit your bank statement for the previous six months.
  • Enter information about your company, such as the owner’s name, educational credentials, and company type (sole proprietorship, partnership, LLC, etc.).
  • Within 59 minutes, you’ll have in-principle loan approval, subject to eligibility.

Eligibility

If you’re self-employed and also have a business, you’ll need to have GST and IT compliance, as well as bank account statements for the previous six months.

The following criteria will be used to assess the applicants’ eligibility.

  • Revenue/Income
  • The ability to repay
  • Credit lines 
  • The lender’s other terms and conditions

Documentation

  • GST registration is required for the company.
  • If you’re registering for the first time, you’ll need to have your GSTIN (GST Identification Number).
  • If you have several registrations, you must have the GSTIN for each one.
  • The company’s most recent ITR returns.
  • Last six months’ bank statements for a company.
  • If the lender requests it, you may be asked to provide additional business documents.

Home Loans

Individuals may use the platform to get fast home loans to cover the costs of buying a new home or renovating an existing one. Home loans may be used for a variety of purposes, including:

  • To buy a house, whether new or old;
  • To buy a house in the process of being built;
  • To extend or renovate a home that already exists.

Application Process

The application process is straightforward, and 100% online. The following are the steps to be taken:

  • Visit psbloansin59minutes.com.
  • Choose “apply for home loans” from the drop-down menu.
  • Upload the most recent tax returns.
  • In PDF format, submit your bank statement for the previous six months.
  • Enter personal information such as the borrower’s name, job information, salary, age, and so on.
  • Indicate the loan sum as well as the reason for the loan.
  • Within 59 minutes, you’ll have in-principle loan approval.

Also Read: Why Choose NBFCs Over Banks For A Business Loan In India

Eligibility for Salaried People

Any salaried Indian citizen between the ages of 20 to 70 may apply for a personal loan via the portal and receive an in-principle approval. In particular, the loan approval and interest rates offered are determined by the borrower’s monthly salary, repayment history, and other considerations. 

Documentation for Salaried People

  • E-statements of the borrower’s income bank account must be issued.
  • The borrower must submit ITR 1 or 2 returns.
  • Borrower personal details.
  • Details about the loan required.

For self-employed people, professionals, and entrepreneurs

  • The creditor must submit electronic statements from their savings account.
  • The creditor must file ITR 3 or 4 returns, depending on the situation.

Auto Loans

Individuals may use the platform to get fast auto loans to cover the costs of buying a new bike or car. Under the heading of auto loans, you have the following options:

  • Loan for a new four-wheeler
  • Loan for a new two-wheeler
  • Pre-owned 4-wheelers and used 2-wheelers are eligible for a loan.
  • Loans for electric bikes and vehicles

Application Process

The application procedure is close to that of a home loan. Be sure to read the previous section for thorough application instructions.

Auto Loans Include Approval and Documentation

Refer to the section on home loans for more detail on qualifications and documentation.

Personal Loans

Personal loans will help you meet unforeseen financial needs. You can use a personal loan for any of the following anticipated or unexpected financial needs:

  • Renovating your home
  • Medical emergencies
  • Vacation
  • Marriage
  • Purchase of jewellery
  • Consolidation of debt
  • Education for infants, and so on

Application Process

The application process is straightforward and entirely online. The following are the steps to be taken:

  • Visit psbloansin59minutes.com
  • Select “apply for personal loans” from the drop-down menu.
  • Upload the most recent tax returns.
  • In PDF format, submit your bank statement for the previous six months.
  • Enter personal information such as the borrower’s name, job information, salary, age, and so on.
  • Indicate the loan sum as well as the reason for the loan.
  • Within 59 minutes, you’ll have in-principle loan approval.

Personal Loan Eligibility

  • Individuals between the ages of 20 and 70 who are salaried
  • You must be an Indian national.
  • The creditor must send the most recent ITR 1 or 2 returns, depending on the situation.
  • For the previous six months, the creditor must have e-statements from their savings bank account.
  • Documents proving the borrower’s identity
  • Information on the loan amount and how it will be used

Aspects of the Loan Application Process and Interest Rates

The following factors influence loan availability and interest rates:

  • The sum of money or income generated by a corporation or a person.
  • The borrower’s repayment potential or credit ratings. This is calculated using various financial records, such as bank accounts, GST returns, and prior borrowing history, among other things.
  • Credit facilities already in operation. If the borrower has a large amount of unpaid debt, the loan application will likely be denied.
  • Each lender decides other considerations.

Things to Remember While Applying for Loans

  • For all four types of loans, borrowers are not required to provide any collateral.
  • After you’ve entered all of your information—borrower name, personal information, loan number, and loan type—the portal will show you a list of lenders who are willing to lend you money. 
  • This list differs from borrower to borrower.
  • Several Fintech software and data mining algorithms are used to align you with the right lender on the portal.
  • The borrower may pick his or her preferred lender and request an application for a loan.
  • The loan sum is disbursed within 7–8 working days after the lender approves.

List of banks and lenders that offer 59-minute PSB loans

Bank of BarodaIDBI BankPunjab National Bank
Bank of IndiaIDFC First BankSaraswat Bank
Bank of MaharashtraIndian BankSBI
Canara BankIndian Overseas BankSIDBI
Central Bank of IndiaIndusind BankUCO Bank
Federal BankKotak BankUnion Bank
ICICI BankPunjab & Sind BankYes Bank

Conclusion

PSB Loans in 59 Minutes are MSME Loans that concentrate on automating the loan process so that applicants can receive an application letter and approval in less than 60 minutes and choose a bank from a list of options for a smoother MSME Loan process.

  • PSB Loans are available in amounts ranging from Rs 1 lakh to Rs 5 crore and can be obtained in as little as 59 minutes. Interest rates begin at 8.50 per cent and go up from there.
  • The loan processing time has been reduced from 20 to 25 days to 59 minutes.
  • The Loan Amount is disbursed 7-8 working days after the loan is approved.
  • Once the loan is approved and/or sanctioned, it is disbursed without human intervention.

PSBloansin59Minutes.com is an excellent alternative if you’re looking for a hassle-free loan facility. If you fulfil the eligibility requirements and have the appropriate paperwork, you can quickly get the loan.

In case if you are looking for a collateral-free business loan, Indifi is an online NBFC platform that offers loans without security with minimum documentation.

Frequently Asked Questions (FAQs)

  1. What are PSB Loans in 59 Minutes?

It is an online platform launched by the Indian government to provide business loans to SMEs in a process that can accept loan applications in as little as 59 minutes. As a result, business owners may apply for a small business loan via PSB Loan to meet their needs.

  1. Will I get a home loan or a personal loan in 59 minutes from PSB Loans?

Yes, you could get a home loan and a personal loan in 59 minutes from PSB Loan. The interest rate and the loan amount will be determined by the applicant’s monthly income, repayment history, and other factors.

  1. What is the interest rate on SBI’s PSB Loans in 59 Minutes?

Interest rates on PSB loans start at 8.50 per cent and go up from there.

  1. What are MSME enterprise loans?

MSME stands for micro, small and medium enterprises, which are owned and managed by individuals. MSME loan is a type of loan available to entrepreneurs and business owners who want to grow or develop their current business.

  1. Is it necessary for the borrower to have collateral for PSB loans?

Borrowers for PSB Loans in 59 Minutes are not required to have security or collateral.

  1. What is a collateral-free loan? And how does it work?

An unsecured loan, a collateral-free loan, is one in which the borrower is not expected to give any collateral or protection to the bank or lender to receive a loan.

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