MSME 59 Minutes Loan: However, it is very important to clarify here that 59 Minutes Loan was launched by the current Prime Minister from 2 November 2018 with the aim of solving the money related problems of the MSME sector of the country and providing them with easy loans. What I mean is that this is not a new scheme or programme, but an ongoing scheme for the last two years.
Under which the needy entrepreneurs involved in Micro, Small and Medium Enterprises can avail loans from Public Sector Banks (PSBs) in a very short time to grow their business. But even today we see that most of the entrepreneurs involved in the MSME sector do not have much information about 59 Minute Loans. So whenever they come up with the idea of expanding their business, the lack or absence of money forces them to take the next step.
All this happens because they are not aware of many schemes run by the government for the MSME sector or even if they have the information it is half incomplete. Keeping that in mind, today we are trying to provide complete information about 59 minutes loan through this article of ours. So that more and more entrepreneurs of the country can take advantage of this portal to get loans at the earliest and help in strengthening the country’s economy by expanding their business and creating employment in the country.
What is MSME 59 Minutes Loan
It is probably not hidden from anyone that currently getting a loan from a bank or other financial institutions is not an easy task. This means that even if you qualify for a loan, banks or other financial institutions take months and days to approve the loan.
To reduce this time, a loan of 59 minutes has been introduced. As the name suggests, under this program there is a provision to approve the loan within one hour i.e. 59 minutes after applying. A point to be noted here is that not all applicants for this type of loan are necessarily accepted within 59 minutes, there may be some flaws in their documents etc., due to which the bank or lender i.e. the lender may take a little more time and may even reject the application. is
This means that efforts have been made by banks to reduce the time taken to process the loan application and the seven working days taken to disburse the loan even after approval under the 59 minute loan.
As far as the interest on the loan is concerned, the interest rate through this portal is also going to go above 9%. Because the interest rate has to be determined by the issuing bank or financial institution. But its main objective is to save entrepreneurs belonging to the MSME sector from standing in queues to take loans and to approve loans in 59 minutes. Such entrepreneurs can apply for home loans ranging from 1 lakh to 5 crores.
Eligibility Criteria For MSME 59 Minutes Loan
We all know very well that banks or other financial institutions are also interested in giving loans to the same person or company from whom they are more likely to get their money back. That is to say, no bank or financial institution wants its money stuck with any person or company that is unable to pay the loan installments.
Eligibility criteria for granting loans are set by each bank and financial institution to minimize the possibility of losing money. 59 minutes loan will also be given to those who are eligible for it, whether a person is eligible for this loan or not depends on the following points.
- Income and revenue of the entrepreneur’s enterprise.
- Borrower’s ability to repay the loan.
- Current credit facilities with the entrepreneur.
- Other factors determined by the issuing bank or financial institution.
- Features and Benefits of 59 Minutes Loan
- Following are some of the key features and benefits of 59 minute loans offered by public sector banks.
Under Business Loan, there is a provision to give loans ranging from one lakh to five crore rupees to entrepreneurs through the portal. That is, such entrepreneurs who need 1 lakh to 5 crore rupees to grow their business. They can apply for loans through this portal.
Although the interest rate on a given loan will be decided by the financial institution providing the finance, the interest rate here starts from 8.5%.
As we have already said that under this program there is a provision to approve or reject the loan within 59 minutes. Hence the entrepreneur does not have to wait for months for the loan.
Any entrepreneur can apply for a 59 minute loan from anywhere, as it can be easily applied online through the official portal.
An entrepreneur does not need to stand in line at the bank and also does not need a lot of documents.
Advanced technology has been used for these loans from the time of application to the loan approval, disbursement stage, wherein human intervention has been kept to a minimum.
A portal created to provide such loans gives applicants the freedom to apply for loans in a convenient process. Because an interested entrepreneur or applicant can apply for loans from multiple public sector banks through a single platform.
The official portal secures the information provided by the loan applicants by using the highest level of security tools for it. So applying for a loan through this portal is completely safe and secure.
59 Minutes Loan is integrated with latest features like various government services like Income Tax Return, GST, Bank Details.
Required Documents to Apply
For 59 Minutes Loan
However, the list of required documents may vary depending on the institution providing the money. But there are some major documents that are asked by banks or financial institutions while applying for loans for small scale businesses, some of them are listed below.
GST details such as GST Identification Number and GST Username.
Income Tax Details Three years income tax return in XML format.
Last six months bank statement in PDF format.
Necessary loan details.
Registration details of the entity like ownership/partnership etc.
E-KYC documents of the loan applicant.
PAN card of business or entrepreneur.
How to Apply for MSME 59 Minutes Loan
Applying for a 59 minute loan is now a very easy task, for this the entrepreneur first needs to register himself on its official portal. And then apply for the loan by logging into the portal using your user ID and password. The point to be noted here is that the application is accepted or rejected within 59 minutes after completion of the application. If the loan application is approved, the loan is disbursed within 7-8 days of its approval.
How to Register in the Portal
First of all go to its official portal and click on register given on the top right side.
On clicking register, a small form will open, fill your full name, email address, mobile number and click send OTP.
A 6 digit OTP will be sent to your mobile, enter that OTP there and click on I Agree box and click on Proceed.
And after that create a password to login to this portal in future. The sign up or registration process is completed here.
How to Apply for Loan
To apply a 59 minute loan, first of all the entrepreneur has to log in with his login id and password.
After that the entrepreneur has to select his profile as business and click on proceed to apply for business loan.
Create your profile and enter the PAN number of your business and click on proceed.
After that fill the details of GST details, tax return and bank statement etc.
After that upload the required documents and click on proceed.
This may require uploading bank statements and income tax return documents separately.
After that complete details of your business and if any loan pending are to be filled.
OTP verification may be required to verify your email id.
The entrepreneur then has to select the public sector bank from which he is willing to take the loan and its branch. After that the entrepreneur can get the principal approval from the bank.
After completing all these processes, the entrepreneur completes the application process for a 59-minute loan, after which the bank has to settle this application within 59 minutes. It is more likely to be completed on time as there is no human intervention. When the loan is approved within 59 minutes and the principal approval amount is paid by the applicant, the entrepreneur can get the loan after 7-8 days. But even after paying this principal amount, the loan will not be guaranteed as the final decision is left to the lender.