What is an MSME Loan in 59 Minutes?
MSME or the Micro, Small, and Medium Enterprises is the department which is controlled by the central government. Arun Jaitley, Finance Minister, launched a portal psbloansin59minutes.com which enables the MSMEs to avail an MSME loan in 59 minutes. This portal was launched in September 2018 and is supervised by the Micro, Small, and Medium Enterprises Department.
The MSME loan in 59 minutes scheme offers business loans ranging from INR 10 lakhs to 1 crore. Notably, the MSME loan would be approved or disapproved in 59 minutes under this scheme. However, the loan amount would be disbursed in 7-8 days. The MSME loan interest rate under the MSME loan in 59 minutes scheme would be 8%. Nonetheless, it would vary on the loan applicant’s CIBIL score, business activities, proprietorship, and other business-related financial factors. The processing fees for MSME loan in 59 minutes is INR 1,000 plus the applicable taxes.
The documents required for MSME loan in 59 minutes:
- Bank statement of the last 6 months in PDF format
- Digital version of Know Your Customer.
- Income Tax Returns (ITR) for the last 3 years (in XML format) and e-filing details.
- GST certification and details along with the GST ID and password.
- Ownership details/certificates of the current ventures.
- Personal details of the applicant along with educational details.
- Personal details of all the partners or directors.
MSME Loan in 59 Minutes vs NBFC Business Loans
The concept of fast MSME loan is not new. Many NBFCs like ZipLoan have already been offering fast MSME loans for a long time now. The following are the differences between MSME loan in 59 minutes and NBFC business loan.
1. MSME loan in 59 minutes can be availed by filling an online application on the portal. On the other hand, NBFC loans are also offered online and can be availed easily by filling the online business loan application form from home anytime.
2. The documents required for MSME loan in 50 minutes scheme include bank statement (6 months), digital version of KYC, ITR (3 years), e-filing details, GST certification & ID & password, ownership details of the current ventures, and personal details of the applicant (& partners if any) along with the educational details. Whereas the documents required for NBFC business loan include PAN card, ITR (last 1 year), bank statement (last 1 year), residence address proof, and business place proof.
3. The maximum and minimum loan amount one can avail under MSME loan in 59 minutes is INR 10 lakhs and 1 crore. And in NBFC business loan, it is as less as just INR 1 lakh to 1 crore.
4. Although you will get loan approval in 59 minutes, the loan would be disbursed in 7-8 days in the 59-minute loan. The NBFC business loans are disbursed in less than a week.
The loans offered under both categories are collateral-free business loans. However, NBFCs offer other features, such as a top-up loan, no foreclosure charges after the payment of 3 EMIs, etc. They also have a social media presence and offer mobile App and customer support to assist customers for a happy business loan availing experience.