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“Leading the change to digital lending,” reads the homepage of psbloansin59minutes.com. The PSB59 platform was initiated by the Government of India to simplify MSME lending by providing easy access to business loans for MSMEs via a unified digital platform. Applications and approvals for Public Sector Bank loans or PSB loans are completely digital and can be applied for on psbloansin59minutes.com.
This digital platform was recognised as ‘India’s largest lending platform’ by Credit Suisse in March 2019. The key selling point of this platform is digital approval for business loans within 59 minutes.
What are the loan products under PSB59 loans?
The PSB59 platform has two main types of loan products:
- Business loan
- MSME loan
- MUDRA loan
- Retail loan
- Home loan
- Personal loan
- Auto loan
If you want a loan for your small business, you can choose between MSME loan and MUDRA loan. The objective of the PSB loans in 59 minutes scheme is to handle loan applications with speed and provide access to personal and business borrowers with access to timely finance.
Benefits of PSB59 business loans
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 7-10 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
Business loans on the PSB loan platform
Business loans on the platform are tailored to cater to the needs of MSMEs and are divided into two categories called MSME loans and MUDRA loans. Under MSME loan you can apply either for a:
- Working capital loan
- Term loan
Who is eligible for PSB loan scheme?
Loans taken for the following purposes will be sanctioned under this scheme:
- 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.
Your loan eligibility is determined by your business’s:
- Income/ revenue
- Repayment capacity
- Existing credit facilities
- Other factors as set by lenders
Documents required for PSB loan scheme
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
- 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.
- 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
- 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
- Processing fee ranges from 0.1% to 6 % depending on customer’s credit and risk profile
How to apply for PSB 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.
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.
