The Modi government has been very optimistic on the  Micro, Small and Medium Enterprises (MSMEs) sector since the announcement of Union Budget 2018, and hence it has introduced various measures. Now, guess what! The government has taken an even more exciting step and made it a lot easier for MSMEs to opt for a loan. Easy means it will take less than an hour! In a latest development, the Finance minister Arun Jaitley has launched a new online portal, through which loans up to Rs 1 crore will be dispensed in a span of just 59 minutes. MSMEs will be able to take loan from Small Industries Development Bank of India (SIDBI) and a few Public Sector Banks (PSBs) as well. 

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The portal is psbloansin59minutes.com and it mentions this scheme on its website. It says "PSB Loans in 59 minutes is an online marketplace, which will enable In-

Principle approval for MSME loans up to Rs 1 Crore in 59 minutes from Public Sector Banks."

Post receiving of In-Principle approval letter, the loan is expected to be disbursed in 7-8 working days.

The website added, "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."

With this platform, the loan processing turnaround time has been reduced from 20-25 days to 59 minutes. 

A MSME can take loan starting from Rs 10 lakhs to Rs 1 crore, and their rate of Interest starts from 8% onwards. Also the collateral coverage is not mandatory as the platform is directly connected to CGTMSE scheme. 

How does this loan approval happens in 59 minutes - check process:

 It needs to be noted that, an MSME must have few documents if they want to avail the Rs 1 crore loan. Informations are given below. 

1 - GST Identification Number
2 - Income tax returns in XML format
3 - Bank statement for last six months in pdf format
4 - Director/Owners details: basic, personal, educational & ownership details
5 - Inprinciple Approval in 59 minutes

PSBs like SBI, Bank of Baroda, Punjab National Bank, Indian Bank, Vijaya Bank, Allahabad Bank, Andhra Bank, Bank of India, Bank of Maharashtra, Canara Bank, Central Bank of India, Corporation Bank, IDBI Bank, Indian Overseas Bank, Oriental Bank of Commerce, Punjab & Sind Bank, Syndicate Bank, UCO Bank, Union Bank and United Bank of India. 

Features of this Rs 1 crore loan in 59 minutes are: 

1 The platform is fully compatible with existing banking processes.

2 The MSME can apply for a business loan with multiple banks at one go.

3 It is equipped with the highest level of Information Security.

4 The user banks can create customized loan products as per their credit policy.

5 With GST, ITR, Bank Statement, Fraud Check, Bureau Check etc to ease credit decision making. 

6 With CGTMSE integration, the MSME borrower can get a collateral free loan.

Therefore, ache din has arrived for MSMEs!