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Last updated: 13 Nov, 2018  

Rupee.9.Thmb.jpg Rs 1 crore loan just in 59 minutes!

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Bikky Khosla | 13 Nov, 2018

The government recently launched a 'Support and Outreach Initiative' for micro, small and medium enterprises. As part of this programme, 12 key initiatives have been launched. Among them, what stands out, without an iota of doubt, is the launch of a 59-minute loan portal for MSMEs. This dedicated digital platform seeks to cut the lengthy and cumbersome loan approval process -- one of the biggest challenges facing our MSMEs.

So, how to get loans under this facility? First, an applicant will be required to visit the official website, and there complete the sign up process. The next levels will include some simple steps like answering some basic questions and giving GST details; uploading bank statements (or log in with your net-banking credentials) and mentioning directors' details; citing the purpose of loan; and finally selecting a bank and paying a convenience fee.

The registration does not involve any payment, but if an applicant's proposal matches the products of banks and the applicant wants to receive an approval in principle, he will be required to make a nominal payment of Rs 1,000 plus applicable taxes. The loan amount will be between Rs 10 lakh and Rs 1 crore and the rate of interest (RoI) starts from 8%. After the approval in principle of the application, the loan amount will be disbursed in 7-8 working days. For further details, you may check the FAQ section of the official website.

Needless to say, the 'loans in 59 minutes' promise sounds great. The MSME sector, which contributes 30% to India's GDP, were hit hard by the twin shocks of demonetisation and implementation of the Goods and Services Tax. Additionally, MSMEs have to bear the brunt of the ongoing bank NPA crisis. More recently, fall in amount of lending by non-banking financial companies in the aftermath of the IL&FS crisis has also affected them negatively. In this background, it seems need of the hour to pump extra credit into the sector.

I invite your opinions.

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Site Not working
Anand Vihari | Wed Dec 19 11:50:00 2018
 Iam trying to open the main webs portal of PSB Loans in 59 Minutes but it is not working in my laptop. Please provide the another website i want to apply for business loan. Please give me the reply as quick as possible.

Loan approval in 59 Minutes
Deepak Prasoon | Wed Dec 12 12:45:14 2018
Sir , I think this portal is only useful for existing Businesses & not for a New Start Up. It also violates the Govt Guidelines of Collateral Free Loan upto 1 Crore to be covered by CGTMSE. It is clearly stated that Lenders may ask for Collateral Security. Also, if an Unit has satisfactory operation in its Account for last six months & also has some collateral to offer, then the Bank itself would provide Loan & there will not be any need to register / apply on this portal. I feel that MSMEs with Credit needs upto 25 lacs must be compulsorily made Collateral free. I have my doubts that this portal will be of much use for the Entrepreneurs. This has provided one more gateway to the Bankers who have started directing the Prospective Borrowers to Register on the Website instead of visiting Bank's Branches

It's a great initiative by our PM
Bhagawath Prasad | Sun Nov 18 13:38:31 2018
Sir,When Prime Minister speaks in public on stress of MSME sector,it indicates that government has noticed the issue,59 mt loan approval scheme is something to wake up respective bank officers for working for MSME sector,As you mentioned in your article,our PM must not stop here,I request him to relax NPA norms for loans taken before note ban and GST,RBI must remove PAC norms mechanism for MSME, If relaxed frame work is not given to banks,why would they still fund stressed out MSMEs While,nationalised banks,private banks comes under strict regulation framed by RBI,cash starved MSMEs went to NBFCs,now NBFC s also have to report stressed a/c s,thereby knocked doors,Now RBI stepped in there and said,they must not declare dividends to investors if incase the have 10% of NPAs of tootal loan portfolio,CEOs president's get bombarded in investors meet for this and started pressurising MSMEs to pay immediately, if not torturous methods are used for collections.I don't blame the bankers,it's a handwork of RBI and government,until unless government relaxes norms,bankers continue to act as per their rule book ,MSMEs connected to real-estate, Retail,health ,Education and Telecom are the one worst hit ,If government quickly don't do something for them, they would perish and increase NPA and bankruptcy book.Before note ban,MSMEs used to get bridge loans from private lenders,Now they have vanished for various known reasons,no banks funds under RBI strict rules,What's left now?

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