Bonanza for MSME - 1 Crore Loan in 59 minutes: Step by Step guide
MSME i.e. - Micro, Small & Medium
enterprises are the pillar of economic growth in India. They are called as “the
engine of growth” for India as, MSME has played a prominent role in the
development of the country in terms of creating employment opportunities-MSME
has employed more than 50 million people in India and contributing to the MSME sector forms 8% of GDP.
Share of MSME in Manufacturing, Exports and Employment sectors in India
are 45, 60 and 69% respectively highlighting importance of MSME. (Source: FICCI)
However when it comes to financing MSME, the picture is starkly
different. The Banking sector in India is going thru its most tumultuous phase
and NPAs are at all time high. This has made Banks overly cautious and therefore
restricted flow of credit to even genuine industries including MSME. This would
have sounded like final blow to many small industries leading to large scale
loss of jobs.
In this context, Prime Minister Shri Narendra Modi has given a Diwali
gift to MSME industry. He has unveiled a total of 12 initiatives for this
sector but one initiative certainly stand out and that initiative is announcement
of portal to enable, “Loan up to 1 Crore in 59 minutes” This
dedicated digital platform seeks to cut the lengthy and cumbersome loan
approval process which is one of the biggest challenges which MSMEs are facing.
This scheme is aimed to make cumbersome loan application process
hassle free and to ensure creditworthy MSME gets loan without any collateral
and even without visiting branch
Details of the Loan:
Amount: The loan amount
will be between Rs 10 Lakh and 1 Crore.
Rate of Interest: The rate
of interest starts from 8%.
Actual Disbursement: After
7-8 working days from in principle approval
Processing Charges: Registration
is free. A fee of Rs 1000+ taxes would be required when borrower get in
principle approval for loan
No mandatory requirement for collateral as the online portal is
directly connected to the Credit Guarantee Fund Trust for Micro and Small
Enterprises scheme.
Documents required
a. GST Details: GST Identification Number (GSTIN), GST User Name and
OTP
b. Income Tax Details: Upload latest 3 years ITR in XML format
c. Bank Statement: Upload Bank Statements for last 6 months in PDF
format
d. Other details required are Details of Directors/Partners/Proprietor
and Details related to Loan Required
Now lets see step by step guide :
Go to visit https://www.psbloansin59minutes.com
Click on Register link which is on right side top
Type your name, email ID and Mobile Number and get on Get OTP button. After
OTP is received key in OTP , mark the tick box and submit the “Proceed” button
You will be redirected to page below. Please note that password should be at least 8 characters long with combination of alphanumeric and special characters like #, @ etc.
Next page would be “Select your Requirement” page. On this there is
only one tab currently, which is ‘need for existing business’ on Selecting this
tab popup will appear either to ‘proceed’ or ‘cancel’.
Select proceed to go further.
On next screen checklist is there which more of a selection criterion
for loan is. Any “No” would disqualify the select MSME for this process. Note
the MSME can still opt to visit branch for loan approval though. Select correct
option, check the tick-box to proceed further
Next enter your 15 digit GST
number (GSTN) and GST username and click generate OTP. Post this enter your GST
password to proceed to next screen in which either upload your tax returns in
XML format or login with your tax site credentials — your PAN and date of
incorporation.
Next upload 6 months bank
statement in PDF format. You can also login using your next banking
credentials. But if you aren’t comfortable with this then PDF is much simpler
and safer option.
Next screen would be providing
details of directors / proprietor / partners details of the company along with
address. In this screen one need to enter personal, education and ownership
details. Borrower can provide an approximate figure for net-worth, the exact
figure will be verified on due diligence. The details are required to check the Bureau Score of all the
Directors/Partners/Proprietor, to check for credit history of the organization
as well as its managers.
This would lead to screen in
which loan requirement details along with existing loan need to be entered. Submitting
these details would lead to list of banks from which you need loans. The borrower will be displayed all the
products that has matched with his proposal and its borrowers up to discretion.
The user can compare the Amount, Rate of Interest and Processing Fees (%)
offered by various lenders and select any One Lender. Post selection of lender
select appropriate branch.
Next step is to pay convenience
fees. This is last step. Post Payment approval letter is generated by system if the eligibility is there.
Please note that the above exercise
may lead to sanction of loan as per eligibility. The bank may ask for additional
document while disbursing the loan.
About Us:
We are a neo advisory firm that believes in Goal based investment. We offer investment services in Mutual Funds and also retirement/ Life insurance solutions. We have over a decade experience in finance sector. For any clarification / investment needs call us on 9325295502. We provide services across India. Also visit us on www.growwealthadvisors.com
We are a neo advisory firm that believes in Goal based investment. We offer investment services in Mutual Funds and also retirement/ Life insurance solutions. We have over a decade experience in finance sector. For any clarification / investment needs call us on 9325295502. We provide services across India. Also visit us on www.growwealthadvisors.com
We are now on instagram. Visit
us on https://www.instagram.com/growwealthadvisors/
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