How soon can small business loans be approved/disbursed? In most cases, banks and NBFCs will take 24 – 72 hours to approve and sanction a SME loan application. But what if a loan can be approved and sanctioned within less than an hour – to be specific in 59 minutes only?

The PSB Loans in 59 minutes is one such initiative by the government that aims to simplify MSME lending by providing easy access to business loans for MSMEs within 59 minutes. The process for PSB loan application and approval is entirely online through a unified platform, ensuring agility, efficiency and transparency.

In 2019, Credit Suisse recognised the Public Sector Bank or PSB loan digital platform as ‘India’s largest lending platform’ its USP being that it provided digital approval on business loans within 59 minutes. As of January 2024, loan value amounting to ₹85,980 crores were sanctioned, of which ₹69,240 crore has been disbursed under the PSB 59 minute loan scheme (Source: Financial Express, 9 January 2024).

What is the full form of a PSB loan?

The full form of PSB loan stands for Public Sector Bank loan. It refers to specific online loans for the MSME sector and entrepreneurs.

Different public sector banks have formed a consortium and offer this type of loan. For more information, visit the official website, PSB Loans in 59 minutes (by SIDBI): //www.psbloansin59minutes.com/home

PSB loan meaning

PSB loan in 59 minutes is a scheme by the government that offers in-principal bank approval on collateral-free loans or working capital loans to MSMEs under the CGTMSE programme. Loan amount can range between ₹10 lakhs to ₹5 crores and can be applied for from specific private and public sector banks.

A swift lending solution for small companies in India, it allows eligible businesses to get loan approvals online within 59 minutes. Interest rates are competitive (usually around 8.5% p.a. onwards) and based on the loan amount, credit worthiness and viability of the MSME.

What is the 59 minute loan scheme?

The PSB loan in 59 minutes is a means for digital lending revolutionising financing for Indian MSMEs. To apply for the 59 minute loan, a business must demonstrate strong financial health and growth potential.

Loan amount offered: ₹10 lakhs to ₹5 crores

Interest rates: 8.5% onwards (check with lending bank)

Loan tenure: 1 year to 15 years

Application process: Online

Where to apply: Selected public and private sector banks (e.g., State Bank of India, Punjab National Bank, Bank of India, Bank of Baroda, Indian Bank, SIDBI, UCO Bank etc.)

Loan products: Business Loans and Retain Loans (available from 21+ lending partners)

Business loans: MSME loan and MUDRA loan

Retail loans: Home loan, personal loan, auto loan

Other charges: Processing fees from 0.1% to 6% as the case might be

What is the interest rate of 59 minutes loan?

PSB loan interest rate varies by banks but are competitive as they are designed to support small businesses with affordable financing. Interest rates generally start at 8.5% p.a. onwards.

It varies (higher or lower) based on the applicant’s creditworthiness, loan repayment capabilities, income of the business and other factors as the lender might apply. (Note: The economic environment and general interest rates on term loans and working capital loans set by the apex body also impacts PSB loan interest rate).

Also read: Business loans vs Working capital loans – How are they different?

Benefits and Features of PSB loans in 59 minutes

Applying for loans from the PSB platform has the following benefits:

• MSME loans can range between ₹10 lakh to ₹5 crores
• MUDRA loans range between ₹10,000 to ₹10 lakh
• Fill in the digital application loan form on your phone or computer at any time
• A single form for all the lenders on the platform
• Only minimal documentation required
• Real time tracking of loan applications online
• Fast digital approval in 59 minutes
• Loan sanction and disbursement within 7-8 working days
• Lenders might receive multiple loan offers to a single application from which they can choose one
• Sanctioned with or without collateral depending on the loan

Who is eligible for a PSB loan scheme?

So, Who is eligible for instant loan? PSB 59 minutes loan scheme, due to its quick approval process is also often known as instant loans for small businesses. PSB loan eligibility is determined by the financial health of the business and the nature of business activity.

Listed below are some of the business activities for which you can apply for a PSB loan in 59 minutes:

• Business expansion
• Purchase of plant & machinery
• Technology upgrade
• Infrastructure development
• Scaling operations
• Product/services expansion
• Business diversification
• Purchase of raw materials
• Daily cash flow requirements

PSB 59 minutes loan eligibility requirements for MSMEs who wish to apply for the loans state that all borrowers must have six months bank statement facility. The platform caters to financial requirements of GST registered as well as non-GST-registered businesses.

PSB loan eligibility is determined by your business’s:

• Income/ revenue
• Repayment capacity
• Existing credit facilities
• Other factors as set by lenders

What are the documents required for PSB loan in 59 minutes?

Here are the documents required to apply for PSB business loans:

• Income tax return proof for at least a year in XML format
• GST registration (Also read: GST registration process)
• For single GST registrants: GST identification number (GSTIN) and GST username
• For multiple GST registrants: GST identification number (GSTIN) and GST username for each registration. Borrowers should assign one registration as primary.
• For businesses not registered with GST: The borrower can provide his/her business and sales details manually by self-declaring the same (Also read: GST registration limit)
• Bank statement of the last six months in PDF files

Conditions for availing MSME loan under PSB

There are certain conditions attached to MSME loan under the PSB scheme:

• Minimum repayment tenure: 1 year
• Maximum repayment tenure: 15 years
• Interest rates range from 6.8 % to 21% depending on customer’s credit and risk profile (this keeps varying and should be checked with the lender at the time of application)
• Loan processing fee range from 0.1% to 6 % depending on customer’s credit and risk profile

Conditions for availing MUDRA loan under PSB

These are conditions for MUDRA loan borrowers:

• Minimum repayment tenure: 1 year
• Maximum repayment tenure: 15 years
• Interest rate ranges from 6.8 % to 21% depending on customer’s credit and risk profile (this keeps varying and should be checked with the lender at the time of application)
• Processing fee ranges from 0.1% to 6 % depending on customer’s credit and risk profile

What is the maximum limit of PSB59?

The 59 minutes loan limit stands at a maximum of ₹5 crores.

This cap allows SME businesses borrow as per their requirements supporting their growth and operational needs. The amount sanctioned and approved depends on the credit worthiness of the borrower, the purpose of the loan and the lender’s terms.

For businesses looking at higher loan amounts, the lender might ask for collateral security for reducing risks. This allows them to accommodate various business scales and needs ensuring that more MSMEs can benefit from the PSB 59 loan scheme initiative.

What is the limit of SIDBI loan in 59 minutes?

SIDBI loans under the 59 minute loan scheme limits the maximum loan amount to ₹5 crores.

How to apply for PSB 59 minutes loans?

You will need to first register on the PSB loans portal to apply for a business loan. The registration to the platform is free of any costs. Follow this process for registration on the PSB loans portal.

Step 1: Visit www.psbloansin59minutes.com

Step 2: Click on the login button on the homepage

Step 3: Fill in your name, email address and mobile number on the registration form. Post registration, the applicant will be directly taken to ‘Profile’ page

Step 4: The next screen will ask you if you want a ‘Business loan’ or a ‘Personal loan’. Click on ‘Business loan’

Step 5: Fill in your GST details, including GST number and password and other income tax information on the page that appears. You can upload Income Tax statements in XML format on this page.

Step 6: Upload the bank statements from the past six months in PDF format.

Step 7: Input details of directors, proprietor and company address on the business details page that appears.

Step 8: Select the purpose of the loan and provide the details of any previous/existing loans taken by your business.

Step 9: Select the bank of your choice that will process your application.

Step 10: Pay the ₹1000 convenience fee, plus taxes for approval.

You can also apply to any of the PSB loans without creating your profile. This would mean that you will have to upload all documents during the application process.

What is the duration in which PSB loans in 59 minutes can be dispersed?

With integration with CGTMSE scheme, the PSB loans in 59 minutes scheme allows applicants to apply to 21+ lending partners through a single online application form. The application process takes less than an hour though the actual disbursement might take up to 7 to 8 working days.

After the application has been submitted, the verification process commences, followed by loan sanctioning and disbursal. Based on the documents submitted, applicant profile, and risks associated with lending, the PSB loans in 59 minutes disbursal time can take 7 to 8 working days.

How to check PSB loan status?

To check PSB loan status, keep your loan application number handy. Visit the bank’s website and enter your PSB loan application number to check the status of your loan application.

Alternatively, you can login to the PSB 59 minutes loan portal to check your loan application status:

• Visit PSB loan in 50 minutes official portal
• Use credentials to login to the portal: //www.psbloansin59minutes.com/login
• View the dashboard and click ‘My Applications’ tab
• Check the status of your application

There are various MSME government loan schemes that Udyam registered MSMEs can participate in. These loan schemes provide easy access to finance at discounted interest rates coupled with an easy loan application process.  Government funding for MSMEs seeks to boost the growth of MSME sector and increase MSME contribution to Indian economy.