Disclaimer….before you read ahead!
The information contained herein is of a general nature and for information purposes only, with the intent of raising awareness around various resources, schemes etc. available for women entrepreneurs in India. It is not intended to address the circumstances of any particular individual or entity. It does not purport to be all-inclusive or necessarily contain all the information that may be relevant for the reader, and may be subject to updation, revision or amendment. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to remain accurate in the future. The reader, therefore, is required to exercise their discretion; and not act on such information without appropriate professional advice after a thorough examination of the particular situation.
Furthermore, we are not a lender and are not authorized by the Reserve Bank of India to act as one. By disseminating the information contained herein, we are not soliciting any borrower or customers for the company or organization mentioned herein nor do we intend to syndicate any capital for the reader of this email.
About the scheme…
psbloansin59minutes.com, an online credit facilitation platform, was launched by Prime Minister Narendra Modi on November 2, 2018 with an aim to make credit access and banking for Micro, Small & Medium Enterprises (MSMEs) transparent and hassle-free.
psbloansin59minutes.com is an initiative by Online PSB Loans Ltd., a FinTech company, majority shareholding of which is owned by SIDBI and its affiliate, State Bank of India, Bank of Baroda, Punjab National Bank, Indian Bank, Vijaya Bank, SBI Cards and Payment Services Pvt. Ltd and BoB Capital Markets Ltd.
Since launch, psbloansin59minutes.com has also introduced retail loans such as home loans, personal loans and auto loans. However, for the purpose of this article, we will only be focusing on Business Loans.
How is it being implemented?
psbloansin59minutes.com aims to automate and digitize various processes of Business Loans in such a way that the MSME borrower gets an in-principle approval letter from his/her preferred lender(s) online in less than 59 minutes. Post the receipt of in-principle approval, the MSME borrower needs to contact the said lender(s) with the copy of in-principle approval letter for further processing that comprises of a thorough due diligence and final decision on sanction/disbursement.
Scroll towards the end of this webpage to know the 21 Banks and Financial Institutions that Online PSB Loans Ltd. has tied up with.
What’s on offer?
I. Product:
- Term loans ranging from ₹10 Lakh to ₹5 Crores
- Working capital facilities such as overdraft, cash credit etc. ranging from ₹10 Lakh to ₹5 Crores
- Mudra loans up to ₹10 Lakhs
II. Purpose:
- Acquisition of fixed assets
- Working capital requirements
III. Borrower Type
- Individuals, Sole Proprietorship, Partnership, Private Limited Company, Public Limited Company
IV. Security or Collateral or Guarantee or Insurance
- Per the Lender’s norms
- For borrowers who have no collateral security to offer, psbloansin59minutes.com provides for availing collateral free loans by providing Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) coverage to the eligible borrower. Eligibility of CGTMSE coverage is checked real time. However, this would be subject to Lender’s discretion
V. Interest Rate
- Per the Lender’s norms
- Typically ranges from 6.8% to 21% depending on borrower’s credit & risk profile
VI. Processing fee
- Per the Lender’s norms
- Typically ranges from 0.1% to 6% depending on borrower’s credit & risk profile
- Additionally, while there is no registration fee on psbloansin59minutes.com, borrower whose proposal matches with products of Lenders’ and wants to receive an in-principle approval, would be required to make a nominal payment of ₹1,000 + GST to Online PSB Loans Ltd.
VII. Margin money requirement
- Per the Lender’s norms
- Typically ranges between 8 – 30%
VIII. Tenure, Repayments & Pre-Closures
- Tenure: 1 – 15 years
- Repayments, pre-closure terms as per Lender’s norms
IX. Turnaround Time
- In-principle approval: 59 minutes
- Post in-principle approval, it typically takes 7-8 working days for the loan to get sanctioned and/or disbursed provided the data provided by borrower on the portal is accurate
Interested? Read ahead to check your eligibility….
I. Is yours an existing business?
II. Does your business have at least six months’ bank statement facility?
III. Can you provide at least one year’s and at least three year’s income tax returns for your business for availing working capital facility and term loan facility, respectively?
If your answers to the questions above are an emphatic YES, you are all set to avail loans on psbloansin59minutes.com!
So…how big is this scheme and what has been done so far?
I. Since its launch in November 2018 through November 1, 2022, 243,140 loans worth ₹82,962 Crores facilitated by psbloansin59minutes.com have been sanctioned to MSMEs
II. Of these, 225,236 loans (93%) worth ₹67,007 Crores (81%) have been disbursed
So, now, how should you go about it?
I. For submitting application, register and apply here
II. For information on,
- Frequently asked questions w.r.t application, documentation, process etc., please check here
- Journey of MSME Loan borrower, please click here
- Journey of Mudra Loan borrower, please click here
III. For any queries,
- Please contact Online PSB Loans Limited on 079 4105599
OR
Go on then…and do spread the word!
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