What Is A 59 Minutes MSME Loan?

Every company’s operations include multiple activities to manufacture products or render services. Over time, such businesses require continuous funds to invest in short-term or long-term activities. Short-term business activities can include paying the office rent, employee salaries or other day-to-day expenses. On the other hand, long-term business activities can be business expansion and marketing.

Like different types of businesses, the need for short-term or long-term capital is constant for Micro, Small and Medium Enterprises. They have fewer capital needs, their annual turnover is lower and requires lesser operations to achieve.

However, to fulfil the capital need, MSME business owners have two options: use their capital or opt for an ideal loan product. Within the two options, most MSME business owners choose the latter to raise funds through an MSME loan. One of the most beneficial products within the MSME Loan category is the 59 Minutes MSME Loan.

What Is 59 Minutes MSME Loan?

MSME business loans in 59 minutes is a government initiative targeted towards providing immediate capital to companies belonging to the Micro, Small and Medium Enterprises. The Indian government has introduced the MSME loan in the 59 minutes scheme to enhance the process through which the MSMEs get credit.

The MSME loans in 59 minutes scheme allow MSME business owners to avail of an instant business loan from a consortium of Public Sector Banks (PSBs). The 59 minutes loan ensures that MSME business owners get in-principle approval for a business loan of up to Rs 5 crore in 59 minutes from various public sector banks.

Here are the banks included in the consortium offering MSME loans in 59 minutes.

What Are the Reasons For The Indian Government To Launch 59 Minutes MSME Loan?

• Banking Service Aggregation:

The Indian government wanted to bring all the banking services offered by the consortium of banks under one umbrella for the MSMEs.

• Comprehensive Credit:

MSMEs had to scout different lenders for infrastructure and automobile loans. With the scheme, they can avail of infrastructure and automobile loans within the same scheme.

• Increased Credit Levels:

Having realised that the MSMEs are the backbone of the Indian economy, the Indian government wanted to increase the credit levels. Through the scheme, the MSMEs can get a business loan in a timely fashion with flexible repayment options.

• Positive Change:

The Indian government wanted to create positive change and simply present the Indian credit industry. With such innovative schemes, business owners would take more loans from Indian banks, creating financial and credit inclusion.

Benefits Of MSME Loan In 59 Minutes

Here are the benefits of loans sanctioned in 59 minutes for Micro, Small and Medium Enterprises.

1. Immediate Capital

The 59-minute loan for the MSMEs allows business owners to get instant business loans without waiting for days to get the loan approval. Lenders approve the loan within 59 minutes of submitting the loan application, ensuring that the business owners can run company operations smoothly.

2. Minimal Paperwork

The loan application process is highly simplified and requires minimal paperwork. Currently, public-sector banks offer loans for MSMEs sanctioned in 59 minutes with a loan application process that is entirely online. The process requires filling out your basic details and submitting a few documents for KYC.

3. Positive Contribution

MSMEs face challenges in availing of an ideal small business loan, considering the nature of business operations and the low annual turnover. However, with the introduction of the loan scheme, entrepreneurs can easily take a business loan and contribute positively to the Indian economy.

4. Loan Book

One of the most vital benefits of the 59 minutes business loan for MSMEs has been for the public sector banks as they have seen a significant increase in their loan book. With the new scheme that provides quick approval of loans, MSMEs prefer applying for such a loan and are availing of more loans from public sector banks under this scheme.

Eligibility Criteria

All the applicants seeking the 59 MSME loan have to be businesses that qualify as per the definition set forth by the MSMED Act, 2006, they should be:

• Existing businesses with GST Registration
• IT compliant 
• In possession of 6 months’ bank statement

If you are a non-registered or a registered GST business, then the eligibility criteria will based on 

• Your repayment capacity
• Your income or revenue-generating possibilities
• Your pre-existing loans or liabilities
• Other factors as per the lenders 

Loan Details

• Type of Loan: MSME Loan/Working Capital Loan
• Rate of Interest: From 8.50% p.a. and above
• Range of Loan Amount: Between Rs. 10 lakh and Rs. 5 crore
• Repayment Tenure: 1 year to 15 years
• Processing Charges: Anywhere in the range of 0.1% and 6% of the sanctioned loan amount
• MSME loan options from its 21+ partners
• In-principal approval in 59 minutes
• Minimal Documentation Required
• Advanced Technology Backed Loans: Rs. 1000 + GST for Digital approval

The 59 Minute MSME Loan or PSB Loans in 59 minutes is integrated with the latest facilities like Income Tax Returns, GST, and Bank statements in order to help the applicant in their decision-making

Documents Required

• Completed application form with passport-sized photos
• Business details: (if applicable) GSTIN, GST User Name, Proprietorship/ Partners/ Directors details
• Financial documents:
• Latest 3 years' Income Tax Returns (ITR) in XML format
• Last 6 months' Bank Statements (PDF format) for up to 3 accounts (preferably showing main activity)
• E-KYC Documents
• Additional documents that the lender may require

Steps to Register

Step 1:
Visit the official site @ https://www.psbloansin59minutes.com/home and click on the button: Apply now which will take you to the registration page.

Step 2:
Fill in your personal details and click on the ‘Send OTP’ button

Step 3:
Enter the OTP received on your registered mobile number

Step 4:
Check the box wherein it asks you to agree to the terms and conditions

Step 5:
Once you have entered all the details, click on ‘Proceed’

Step 6:
Generate a password for the account for future reference
 

Steps to Apply for 59 Minutes MSME Loan

Step 1:
Login to the official website using your credentials

Step 2:
Select ‘Business’ as your profile for business or MSME Loan and then click on Proceed

Step 3:
Create your profile by entering your PAN card details and then Proceed

Step 4:
Furnish details about your GST, Tax returns (XML format), and bank statements for the last 6 months in PDF format

Step 5:
Upload your ITR, bank details, business details and any other existing loan details as requested

Step 6:

Enter OTP to verify your email address

Step 7
Choose your preferred bank and branch from the list provided that you wish to take the PDB or 59 Minute MSME loan

Step 8:
You shall receive in-principle approval from the desired bank

Avail Of An Ideal MSME Loan From IIFL Finance

IIFL Finance is India’s leading financial services provider with loan products such as MSME business loans. Such loans are collateral-free with attractive interest rates and tailor-made for MSMEs with less financial needs. You can apply for the loan online by verifying your KYC details or visiting IIFL Finance nearest branch.

The loan application is paperless, with only minimal documents needed. IIFL Finance MSME loan scheme is at par with the MSME business loans in 59 minutes and offers instant approval and disbursal of the business loan amount. The IIFL Finance MSME loans do not require pledging an asset as collateral and offer the loan amount through a simplified loan application process.

FAQs:

Q.1: Can I take a 59 minutes MSME loan from IIFL Finance?

Ans: No, only Public Sector Banks that operate under the Indian government are allowed to offer a business loan to MSMEs under the 59 minutes approval scheme. However, you can always take an instant business loan for your MSME from IIFL Finance, where the approval time is equally quick.

Q.2: Does an MSME loan interest attract GST?

Ans: No, MSMEs do not need to pay GST since businesses with a yearly turnover of less than Rs 6 crore are exempt from this rule.

Q.3: Do I need to pledge collateral to take an MSME business loan from IIFL Finance?

Ans: No, this type of loan does not require collateral to sanction the loan.