The PSBLoanin59 Minutes is an initiative of the Government of India to facilitate credit for the micro, small and medium enterprises. The borrowers can access the web portal and avail a principal approval for MSME loans up to an amount of one crore within 59 minutes from five public sector banks and SIDBI.
It is a comprehensive initiative of PSB consortium led by SIDBI under the guidance of the department of Financial Services in the ministry of Finance. The portal has set a yardstick in loan processing and reduces the previous turnaround time from twenty or twenty five days to 59 minutes. Following the approval for the principle amount, the loan is disbursed within a period of seven to eight days.
How to apply for PSBLoanin59 Minutes?
The following are the steps to keep in mind when you need PSBLoanin59 Minutes.
- The first step is to visit the online portal and sign up on this link.
- You have to fill the loan application form with the required details.
- Enter your ID and mobile number to get an OTP on your name and enter the OTP when asked.
- You have to enter the required details such as GST return filing, income tax and the rest.
- Submit the application for the loan amount.
- You may require certain documents such as verification of GST, IT, Bank documents and the other documents.
Key aspects of the loan
The borrowers must note these key features of the loan.
- The loan includes a majority stake of SIDBI and the five big public sector banks including the Bank of Baroda, PNB, Indian and Vijaya Bank.
- The MSME’s have an advantage of connecting with the multiple banks without visiting their branches.
- The MSME’s provide an advanced digital platform when it comes to financing with Services Driven Architecture and the highest level of information security in this loan facility.
- It is a standalone platform in the market with a Banker Interface covering the Branch Level integrations that align with the current system of the PSB’s.
- The platform allows the bankers to prepare loan products in line with the methods of assessment and the Scoring models within their credit policy that have been approved.
- This loan platform is synonymous with CGTMSE for checking the eligibility of the borrowers and they can get a loan amount of up to two crores without providing any collateral, and this aspect provides a lot of flexibility for the borrowers in the micro, small, and medium enterprises.
- The platform also includes an integrated ITR, GST, fraud checker, Bureau check, and tool for analyzing the bank statement along with scores of other features that no other player in the market provides to the clients.
- With the help of this loan initiative by the Indian government, the MSME’s can get the best financial support as it tends to lessen the time taken to apply for the loan, and the disbursal also comes easily.
- The money transfer takes place within a period of seven to eight days and the money comes into the bank account directly.
The initiative to provide loans to the MSME’s are entirely automated in such a manner that the borrower gets the eligibility letter along with the approval of the principal amount of the loan within 59 minutes. Basically, it is a business loan for which the borrower does not require any contact and the interest rate starts from 8%.
Summing it up The PSBLoanin59 Minutes is a unique platform in the segment of MSME and incorporates advanced technology to ensure that the process of loan approval and disbursement is streamlined. While the loans do not require any kind of human intervention until the amount is disbursed to the borrower, the process of applying for the loan amount is user friendly.
On the other hand, it ease the process of decision making of the loan officer as the final outcome includes the credit summary along with valuation and verification on a dashboard which is user-friendly.