Life hasn’t been easy for businesses post-lockdown. While certain micro, small, and medium-sized businesses are slowly resuming their operations in certain states, fulfilling presence still seems distant. However, the Indian Government is trying harder than ever to ensure that MSMEs can last longer and even consider growing in this rugged landscape. With an eye on purported development, the government is making procurement of Business Loans easier for MSMEs as a part of the 59-minute approval scheme.
Are Business Loans beneficial to the MSMEs?
Most certainly, access to a business-specific credit line empowers entrepreneurial setups and ensures autonomy. Micro and Small enterprises, followed by mid-sized arrangements, need emergency funds in 2021, more than ever, as they would be making all the efforts to get back on their feet and even start making profits post lockdown.
Business loans can help these firms ease into the process of growth by offering access to:
- Flexible Loan Amount
The new breed of MSME loans varies in size and spread. Regardless of the startup’s size, you can get a loan amount of choice, albeit depending on your repayment capacity.
- No Collateral
MSME loan, offered as a part of the new empowering vigil, is completely collateral-free.
- Flexible Repayment Tenure
What comforts most MSMEs is to know that the loan amount can be repaid in easy installments, segregated as per your tenure of choice.
What is the 59-Minute Scheme all about?
The Indian Government ensures that MSME loans are now easy to hold as per the latest development. PSB loans, or as we call it, is an initiative led by SIDBI, i.e., the Small Industries Development Bank of India, a banking consortium comprising Indian Bank, PNB, Bank of Baroda, State Bank of India, and Vijaya Bank.
However, any loan obtained per the PSB route should be honored and released within an hour, i.e., 59 minutes to be precise, provided the documentation is on point.
Here are the aspects you need to take care of to be considered eligible for the 59-minute MSME Business Loan:
- Credentials need to be declared at the given portal for proper authentication.
- It is necessary to answer the questions listed on the screen correctly
- Keep the GST number handy
- Upload business tax returns in XML or log in using the PAN details
- Upload bank statements in PDF format, going back six months
- Once the documents are furnished, enter the business details, address, details of the proprietor, and more
- Declare the purpose of getting the loan
- Select the bank of preference by choosing one of the 5, as mentioned before
- A convenience fee of 1000 rupees needs to be paid.
- Once these details are provided, and credentials are furnished, the approval is almost instant, and you can expect to get the approval letter within 59 minutes.
Final Words
The government’s initiative to make any MSME loan available to enterprises within 59 minutes is expected to give businesses the necessary boost. However, suppose you are not getting through to the portal. In that case, you can always reach out to Finserv MARKETS to open up new MSME Business Loan possibilities with minimal hassle, lesser clutter, and instantaneous approval to show for.
