The PSB Loans in 59 Minutes initiative was launched by the government back in November 2018 for in-principle bank approval to collateral-free term loans or working capital loans for MSMEs from Rs 10 lakh to Rs 5 crore within 59 minutes of submission of loan application. The platform also enables other loans including term loans and working capital loans, as well as Mudra loans, catering to the needs of MSMEs. These loans can be utilized for purposes such as acquiring new plant and machinery, upgrading technology, expanding products, purchasing raw materials, and developing infrastructure, among others.
While the loan offering is collateral-free, it is the bank’s discretion to ask for collateral from the borrower.
As of August 30, 2024, 2.49 lakh loans involving Rs 86,820 crore have been sanctioned via the platform, according to the official data from the MSME Ministry’s dashboard.
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To apply for collateral-free loan through the platform, MSMEs need to:
- Register and log in to http://www.psbloansin59minutes.com
- Click on ‘Loan’ option on the right sight of the page after login
- Click on ‘Create New’ to create a new loan proposal/application and select MSME loan ‘apply now’
- Enter your PAN and click on ‘Next’
- Confirm whether you have filed your Income Tax return, whether you have defaulted and whether your business is registered as an MSME
- Provide your consent and click on ‘Proceed’
- Upload details around GST, income tax return, bank statement, key person details
- Click on ‘One Form’ to provide loan requirement details and business details, and then click on ‘Proceed’
- Click on ‘Apply for loan’ after providing all the required details
- If your loan proposal matches with any of the loan products by banks on the website, then a pop-up window will appear for email address verification Read More: FD rates up to 7.9%: Bank of Baroda revises fixed deposit rates on select tenors
- Now you will able to see all the loan products that match your loan proposal
- Compare and select the lender you want to choose and click on proceed
- Select the lender’s branch where you want to send your loan proposal
- Based on your application, the lender may provide you with the in-principle approval letter for the loan
- In case your loan proposal doesn’t match the existing loan products then you can manually send the proposal by selecting the lender, its state, city and branch.
