The MSMEs (micro, small, and medium enterprises) sector is the backbone of the Indian economy. Yet, such businesses often face difficulty in getting affordable loans to keep the operations running smoothly.
Thus, to make business finance more accessible to MSMEs, the central government launched the Public sector bank loans(PSB) portal in 2018. It’s an initiative that provides borrowers with quick and timely loans from public and private lending institutions and NBFCs. To know more about these loans, read ahead.
What is a PSB loan?
The Government of India introduced the ‘PSB loan in 59 minutes initiative on 2 November 2018 to help MSMEs get funds easily.
Under the PSB credit initiative, the government launched an online portal where you can apply for business finance and get it sanctioned in under 59 minutes! Through the portal, you can get the required funds without documentation hassles or the long sanction process.
If you apply for a loan on the PSB portal, any lending intuition partnering with the platform can quickly approve your application and disburse the funds within 7 to 8 working days.
You can obtain funds ranging from Rs. 1 lakh to Rs. 5 crores with business loan interest rates starting at just 8.50%. As a result, you can enjoy speedy loan approvals, hassle-free loan processing, and reasonable repayment terms to meet your business needs in no time.
Additional Read: How to Get a Small Business Loan from the Government
What are the benefits of PSB loans?
The most prominent features of PSB loans are:
- The documentation is substantially reduced, which is advantageous for small business owners unfamiliar with the difficulties of loan approval.
- The loan application procedure is contactless, so the applicant doesn’t need to go to a bank branch to get approved.
- The platform uses information from various sources to assess a borrower’s creditworthiness, including bank statements, GST returns, IT reports, etc.
- While individuals can apply for a home, auto, or personal loan, businesses can take advantage of term loans, working capital loans, MSME loans, and MUDRA loans.
- The information shared on the website is highly secured.
What are the eligibility criteria for a PSB loan?
If you are self-employed and already own an existing business, you must be GST and IT-compliant and have six months’ bank statements.
The following factors would determine the eligibility of the applicants based on the following factors:
- Minimum turnover is required.
- The borrower should know their repaying capacity.
- The applicant must have a strong credit history.
- Various other factors required with financial lenders.
Since numerous partner banks are connected to the PSB loans platform, the borrower has the freedom to select any lender bank to receive in-principle loan approval.
How to apply?
The procedure to avail of PSB credit is quite simple. Here’s all you need to do:
- First, you must visit the online portal www.psbloansin59minutes.com and create your profile. Select your profile as ‘Business’ for business/MSME loans.
- Next, you must provide your business PAN details and hit ‘Proceed’.
- Provide all the required documentation, such as your GST identification number, ITRs (income tax returns) in XML formats, your bank statements for the previous six months in a PDF, etc.
- You must also fill in your contact, ownership, and personal information, as required.
- Finally, you can select a preferred financial institution to borrow the loan from.
- Once done, you’ll receive in-principle approval from your chosen lender in 59 minutes!
One of the best parts of getting a PSB business loan is the minimal documentation required.
When applying for a loan on the PSB portal, these are the necessary documents you must produce:
- GST details (GST username and GSTIN number)
- Latest 3 years’ income tax returns (XML format)
- Details of the loan you require
- Last 6 months’ banking statement in PDF format (You can upload the statements for a maximum of three accounts)
- Details of directors, partners, or proprietors (if any)
- Your E-KYC documents
Additional Read: How to Submit Your Business Loan Documents like a Pro and Get Them Approved?
Over to you
If you’re searching for the best way to get business loans hassle-free, turn to Tata Capital! Get collateral-free loans of up to Rs. 75 lakhs with minimal documentation and affordable EMI options. Enjoy attractive interest rates, convenient business loan eligibility terms, structured EMIs, and much more.
Get in touch now!