Applying for a PSB Loan in 59 Minutes: Tips and Tricks
Micro, small, and medium businesses are the life-blood of the Indian economy contributing to its growth and stability. However, these small businesses have limited access to traditional lending options due to their restricted credit histories and limited cash flow. The Indian government launched the PSB credit scheme in 2018 to tackle this issue and make easy credit available to MSMEs. While it generally takes anywhere between a few days to a few weeks, MSMEs can secure in-principle approvals from preferred lenders within 59 minutes when they apply through the PSB loan portal.
Understanding the PSB Loan in 59 Minutes
The PSB Loans in 59 minutes portal (www.psbloansin59minutes.com) was launched on 28th September 2018, by the then Finance Minister, Mr. Arun Jaitley. Through the PSB Loan in 59 minutes portal, micro, small, and medium enterprises as well as retail borrowers can avail of digital loan approvals in 59 minutes. Essentially, the platform offered quick and timely business finance to small business owners in India. Small and medium business owners can opt for MSME loans through the portal that boasts a record turn-around time. Instead of taking 7-8 days for the loan application to be processed, the PSB loan platform ensures instant digital processing for MSMEs.
The PSB loan in 59 minutes scheme is regulated by SIDBI (Small Industries Development Bank of India). The scheme is designed to offer MSMEs numerous benefits to help avoid the hassles of availing regular business loans. The application process is quick and simple. MSMEs can apply online through the PSB loan portal and secure in-principle approvals within 59 minutes.
Handy Tips and Tricks to Remember When Applying for a PSB Loan in 59 minutes
Choose the Right Lender
When applying for a MSME loan scheme in 59 minutes, ensure that you are up-to-date with all the details of the scheme.The PSB loan in 59 minutes scheme is available through 21+ public and private sector banks as well select NBFCs. These MSME loans carry affordable interest rates starting from 8.50% p.a. to ensure pocket-friendly finance opportunities for small and medium businesses. You can compare loan terms, interest rates, tenures, and processing charges among different partner lenders to choose one that best matches your requirement.
Pick the Right Type of MSME Loan and Borrow within your Limit
There are various types of MSME loans available through the PSB portal. Depending on your requirements, you can choose from term loans, working capital loans, and Mudra loans. While you can borrow anywhere between Rs. 10 Lakhs and Rs. 5 Crores with a PSB loan in 59 minutes, it is important to avoid over quoting the loan amount. Consider your repayment capacity to borrow only the amount you need to prevent an overwhelming debt burden. Have a well-structured business proposal in place to boost your chances of securing the loan.
Always Maintain a Good Credit History
While PSB loans streamline the loan approval process, the creditworthiness of the borrower remains of paramount significance. The PSB loan portal utilises data from various sources like ITR, GST, MCA, and bank statements to analyse the applicant’s creditworthiness. To improve your chances of approval, you must ensure a good credit score of above 700 and solid credit history.
Keep Essential Documents Handy
One of the chief benefits of the PSB loan in 59 minutes is the minimal documentation required to apply for the loan. While documentation is minimal, it is still important for you to upload the essential ones to the PSB portal to secure the loan. You need to submit the following documents to apply for a PSB loan in 59 minutes:
- Duly filled PSB loan form
- GST details, including user name and GSTIN
- Income tax details (ITR from the last 3 years in XML format)
- Bank statements from the last 6 months
- Proof of business ownership such partnership deed, sole proprietary details, etc.
- Electronic KYC documents
Create a checklist of all the documents needed before you start applying to ensure all the required documents are in order to avoid chances of rejection.
Review the Eligibility Criteria Carefully
To successfully avail of a PSB loan in 59 minutes, you must ensure that you meet the eligibility criteria set by the government. Here’s the eligibility parameters used by lenders when sanctioning MSME loans through the PSB portal:
- Your business should be GST-registered to avail of a PSB loan in 59 minutes. As proof of registration, you must submit your GSTIN. One GSTIN is enough for single registrations.
- You must have your ITR statements from the last 1 year in XML format. All ITRs in relation to presumptive income schemes are eligible for the same.
Additionally, there will be revenue and total income requirements set by the preferred lender selected. Lenders often require minimum CIBIL scores, business vantage, and outstanding loan history as well. Therefore, reviewing the eligibility checklist for a PSB loan is essential before you submit your application.
Familiarise Yourself with How to Register for a PSB Loan
While availing a PSB loan in 59 minutes is quite simple, it’s still prudent to familiarise yourself with the steps in the loan application process. Here’s a step-by-step guide to help you remember the various stages involved:
Step 1: Visit the PSB loan portal and register online.
Step 2: Once registered, log into the portal using your user name and password.
Step 3: Select the ‘Business’ option for your profile.
Step 4: Create your profile and enter your business PAN.
Step 5: Enter your GST registration details and ITR details in the accepted format.
Step 6: Upload business ownership proofs, existing business incorporation papers, and bank statements from the last 3 months.
Step 7: Specify the purpose of the loan.
Step 8: Choose the right lender for the PSB loan.
Step 9: Pay the Rs. 1000 (+GST) service charge and download the acknowledgement.
Once the steps are completed, the lender will contact you with the loan details. Remember that the lender will need to verify your documents in person post the in-principle approval.
Conclusion
If you need access to immediate cash reserves to fund business activities, you can opt for a PSB loan in 59 minutes. These MSME loans are designed to offer instant access to credit to help small businesses meet their requirements without any hindrances. You can easily apply for the loan online through the PSB portal and secure finance of up to Rs. 5 Crores to fund business growth and expansion projects. While the procedure of applying for the loan is simple, a few quick tips like choosing the right lender, maintaining a good credit score, reviewing the eligibility criteria, and keeping the essential documents handy can help you secure a PSB loan approval at the earliest.
Frequently asked questions
What is the minimum and maximum PSB loan limit?
MSMEs can avail of loans from Rs. 10 Lakhs to Rs. 5 Crores through the PSB portable via digital approval.
Do I need to register before applying for a PSB loan in 59 minutes?
Yes. You need to register yourself on the PSB loan portal using your name, mobile number, and email ID before applying for a loan.
Are service charges applicable on PSB loans?
Yes. PSB loans have a service charge of Rs. 1,000+GST.
Does digital approval mean the loan will be sanctioned?
No. Under PSB, the applicant gets a digital approval, but the application and documents are required to be verified by the preferred lender (selected lender). Ultimately, loan eligibility depends on the lender’s eligibility checklist which generally includes revenue cut-offs, repayment capacity analysis, existing credit facilities, and credit score requirements.
