The central government launched the ‘PSB loans in 59 minutes’ portal in 2018 to provide quick and timely business finance to small business owners in India. Put simply – the PSB business loansunder the credit scheme are explicitly built for MSMEs (micro, small, and medium enterprises).
Usually, small businesses or startups have little to no credit history and limited cash flow. As a result, it becomes challenging for them to access the required funds through traditional lending options.
However, the PSB credit scheme eliminates the problem by providing business owners with a loan in just 59 minutes! Getting a loan under PSB only requires minimal paperwork and takes 7-8 working days instead of the conventional 30-day waiting period.
Why opt for the PSB credit scheme?
The PSB portal offers numerous benefits to help MSMEs avoid the usual hassles of availing business loan.
For starters, the application process is straightforward and quick. Once you complete and submit the application online, you can receive the in-principle approval from your chosen lender within 59 minutes. You can also borrow a loan amount of anywhere between Rs. 1 lakh and 5 crores without difficulty!
Moreover, the PSB business loan interest ratesare incredibly affordable.
You must upload the following documents on the PSB online portal to get a loan:
- Your income tax returns for the previous 3 years (in XML format only)
- Your banking statements for the last 6 months (in PDF format only) – you can provide statements for up to three lender accounts.
- Your GST details – GST username and GSTIN (GST identification number)
- Your E-KYC documents
- Details of your loan requirements
- Details of your company’s proprietors, directors, or partners
There are a few eligibility criteria set by the government for PSB loans. Lenders to determine your eligibility for PSB loan. They are as follows:
- Firstly, you must be a GST-registered business to avail of a loan through the PSB portal. As proof, you must provide your GSTIN number. For single registrations, only one GSTIN is sufficient. For multiple registrations, you must provide GSTIN for all the businesses you want to register.
- Secondly, you must provide your ITR statements of at least 1 year in XML format. All the ITRs related to presumptive income schemes and businesses are eligible for this.
- You must also produce your bank statements for the past 6 months in PDF format.
- Your revenue and total income
- Any existing credit facilities
- If you have a non-GST business, you must manually provide a few specific information to meet the loan requirements.
Besides the conditions mentioned above, you’ll also need to meet the specific business loan eligibilitycriteria set by your chosen lender.
Whether you’re looking for a PSB loan or business finance in general, Tata Capital should be your first choice! Apart from our attractive interest rates, we also offer flexible eligibility terms, structured EMI plans, hassle-free paperwork, and collateral-free financing for maximum convenience.
What’s more, you can calculate your projected EMIs beforehand with our business loan EMI calculator. To know more about our financing options, click here.