MSME full form stands for micro, small and medium enterprises. India’s government also aims to improve the manufacturing sector of the Indian economy, which mainly constitutes MSMEs, has laid out various policies and benefits for the growth and upliftment of MSMEs in India. A microenterprise is an enterprise where the investment doesn’t exceed 25 lacs. Whereas in a micro-enterprise, the investment should not exceed five crores but is greater than 25 lacs. The investment in a medium-scale enterprise is more than five crores but less than ten crores.
How to Get Business Loan in 59 Minutes?
Recently, the government has announced a new type of loan for small and medium businesses, promising approval within 59 minutes of application. The business world, after this announcement, went haywire as no one had heard of such a proposal from the government itself. The government didn’t make it crystal clear for businesses to understand the process of application and other terms and conditions. We would carefully analyze every possible hurdle one might face during application, look forward to methods to solve each of these, and then get on with the steps to apply for this MSME loan.
This scheme’s loan is a working capital loan of 10 lacs to an upper limit of 1 crore. The maximum business interest rate under this loan is 8% per annum but may differ based on the credit score, business activities in the past, loan repayment records, etc. This is an unsecured business loan as there are no collaterals involved as such. There exist processing fees and other charges, but you need not be concerned about them.
In the MSME loan in 59 minutes, the banks or the lending institutions would first analyze your application and profile, would look to match your proposal with the product and approve or reject your loan proposal. Although the approval takes 59 minutes, actual loan disbursement may take up to 7-8 days.
Documents Required for The 59 Minutes Loan Scheme
- Bank statements from the last six months in the form of a PDF document from all your business accounts.
- e-KYC document, in paper or a digital version of the same.
- Your income tax returns from the last three years, including income tax codes and e-filing details, in XML format.
- GST certificate, including your GST ID and its password.
- Ownership certificate of all your current ventures.
- Educational and personal details.
Steps for The MSME Registration Process
- Visit the website from where you want to take MSME loan and complete the MSME registration process. Verify yourself by entering the OTP sent to your mobile number and email. After you verify yourself, click on proceed.
- The next page will ask you a few yes and no type questions. Answer each one of these and click on Proceed.
- Now, you will need to input your GST details and password and then income tax information. You can upload the income tax data in XML format.
- Now, you would need to upload the bank statements from the last six months of all your business accounts in PDF format.
- After you are done with the previous step, you will need to fill in some details about your organization, company, or business. Then, select your loan’s purpose and provide some details of your previous or existing loans when asked.
- Choose the bank through which you would want to apply for the business loan. The interest rates vary from one bank to the other. Pay the fees charged. The process of application is now over.
You will need to wait for 6-7 days after approval for the loan to get disbursed.
NBFCs like Ziplan are offering a wide range of loan options and services like auto-renewals and zero penalties on pre-closures, which cannot be ignored. Moreover, the possibility of getting a business loan in just 3* days is something from where borrowers can’t take their eyes off. So, NBFCs like Ziploan are still offering better value as compared to banks or their competitors to their customers.
While, unfortunately, the answer is whether MSME/PSB loans within 59 minutes- is it really possible? Is No. Business loan approval in 59 minutes is possible, but the actual loan will only be processed, in the upcoming working days. You can still get a business loan from Ziploan within 3* working days from its website or from its instant mobile loan app.