How to get MSME Business Loans in 59 Minutes?

If you too are confused about the documentation and process for getting MSME Loan in 59 minutes, here is a detailed guide.

Offered under government schemes, the 59 minutes MSME loan is a business capital loan for an amount between 10 lakhs to 1 crore. While the interest rates can go as low as 8 per cent, it can vary depending on the credit profile of the individual.Moreover, the loan is unsecured in nature and involves a processing fee of ₹1000 plus taxes for borrowers who are eligible for approval. While the MSME loan in 59 minutes gives approval in the said timeline, the actual disbursal generally takes 7-8 working days.

The documents required from prospects applying for the loan are:

1. Bank statement of business-related accounts for the last 6 months
2. e-KYC paper
3. Last 3 years’ income tax return in XML format including tax codes and e-filing details
4. GST certification along with GST ID and password
5. Documents/Details pertaining to current business
6. Personal and educational documents

The following are the steps involved to apply for the loan: Step-1: Visit the official website and register yourself under the ‘new user’ tab. Complete the sign-up process by entering the name, email, and mobile number. Step-2: In order to verify the credentials, an OTP is sent on the phone. Enter the OTP along with accepting the terms & conditions specified. Click on the ‘Proceed’ button. Step-3: Complete the questionnaire and select ‘Proceed’ tab again. Step-4: Enter your GST details - the GST number and password, along with income tax information. Enter the tax details in XML format or log in with ITR details including PAN and date of incorporation. Step-5 : Upload the 6-months bank statements or provide the net banking credentials for the bank to access the financial statements. Step-6 : Provide all the details pertaining to your business. Step-7: Select the purpose of the loan and provide details of existing loans, if any. Step-8: Basis the interest rate provided by different banks, select the bank you prefer to apply for. Step-9: Pay a convenience fee od ₹1000 plus taxes to proceed. Step-10: Download the approval letter.While the government is trying hard to make the country business-friendly and offer easy access to credit, a detailed analysis is required of MSME loan in 59 minutes to identify the bottlenecks and drawbacks of the scheme. Only time will tell the efficacy of the move!

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.