Government of India, through Small Industries Development Bank of India (Sidbi), has launched an online marketplace which will enable In-Principle approval for MSME loans up to INR 1 Crore in 59 minutes from Public Sector Banks.
The online marketplace — PSBLoansIn59Minutes.com, is essentially a quick loan disbursal portal for the MSME sector where GST-registered micro, small and medium enterprises (MSMEs) can avail business loan from Rs 1 Lakh to Rs 1 Crore of in just 59 minutes.
This Platform has reduced the loan processing turnaround time from 20-25 days to 59 minutes. Post receiving of In-Principle approval letter, the loan is expected to be disbursed in 7-8 working days.
The Rate of Interest starts from 8% onwards. Collateral Coverage is not Mandatory as the Platform is directly connected to CGTMSE scheme. Borrower should be GST, Income Tax compliant and must have Net Banking Facility
The loans are processed without human intervention till sanction and/or disbursement stage. On this platform, MSME borrower is not required to submit any physical document for In-Principle approval. The solution uses advanced algorithms to analyze data points from various sources such as IT returns, GST data, Bank Statements etc.
You need to enter:
- GST Number
- Income tax returns in XML formats
- Last 6 months bank statements
- Details of the Directors/owners
- Inprinciple loan is approved in 59 minutes
Who Will Sponsor The Loan?
This facility of instant loan approval has been arranged by SIDBI, and 5 public sector banks. A consortium has been incubated under the aegis of Department of Financial Services (DFS), Ministry of Finance, powered by SIDBI, and 5 public sector banks: SBI, Bank of Baroda, PNB, Vijaya and Indian Bank.
Earlier, SME loans took 25-30 days for approval, which has been now reduced to mere 59 minutes. Once approved, the loan will be dispursed in 7 days.
This is the only platform in the market, which includes GST, ITR, Bank Statement Analyzer, Fraud Check and Bureau Check under one umbrella, online and available 24 * 7.
MSME Outreach Program: Few Highlights
Along with the launch of this portal, several unique initiatives were also launched:
- While filing GST, the Income Tax portal will ask whether you need any loan. Those who are filiing GST can now get upto 2% rebate on interest of loans
- Exporters seeking loans on pre-export and post-export can now get rebate of 5% on loans, which was 3% earlier.
- Companies with more than Rs 500 crore have been mandated to join Trade Receivables e- Discounting System (TReDS), so that smaller SMEs don’t face cash crunch
- PSUs have been mandated to procure 3% of their services/goods from SMEs which are led by women
- SMEs will have to file only 1 annual return on 8 labour laws, and 10 Central laws
- Several penalties will be softened, and simplified, with due changes in the Companies Act
We will keep you updated as more details come in.