How to Apply for MSME Loan in 59 Minutes

MSME Loan

Image source: https://consumercomplaintscourt.com/

Need a loan without having to run around for banks? The new policy for MSMEs from the Prime Minister enables you to apply for a loan through your computer, it’s just a tap away.

Click here to apply: https://www.psbloansin59minutes.com/home

The website is self explanatory and helps MSMEs secure loans in 4-5 easy steps. Here is a break down of the entire process. There can be misuse of funds hence to verify and maintain no leakages, the  basic step directs you to generating an OTP from your mobile. After which the procedure requires you to have a GST number. The industries must use them as their identification and get the number approved with or verified by the system. This step is necessary as the loans are to be issued only to MSMEs.

The systems demand at the next step for the basic and personal details of the owners along with a few basic questions asking the user to prompt for certain answers starting from GST details to tax returns and acceptance for the repayment of loan.

After which in order for the government to verify you are compliant with the government’s rules and regulations, to verify that you are not an insolvent and eligible financially to pay back the loan, income tax return must be uploaded in a special “xml” format.

After verification of the compliancy and credit eligibility with the government, the same procedure has to be followed with the bank. The borrower has to prove their compliant status by providing bank statement in PDF format of the previous six months which not only shows the relationship holding with the bank but also brings into to notice of the government any late payments or insolvency which helps in assigning a basic credit score for the customer. The system also requests the customers to give details about their previous loans and the purpose for their current loan. After which a range of banks that are partnered with are shown up with their rate of interest and the tenure and the customer can opt for the bank based on the suitability.

The convenience fee of Rs.1,000 must be paid by every user that wishes to apply for the loan and the approval letter will then be generated with the Loan amount, rate of interest, chosen bank and tenure along with the EMI which can be downloaded by the user. However, this would just be the approval letter. As per the government instructions the loan might take up to 7-8 business days to get disbursed.

So, overall a user would need:

  • GST number, must be a GST user
  • Income tax return in XML format
  • Six months bank statement in PDF format
  • Convenience fee of Rupees 1,000/-

As per the user feedback about the loan system which has included both positive and negative review; even a one-year old industry can apply for the loan provided to give more information on the capability of the industry and good credit score. But the drawback of the scheme is that the government holds power only to approve the principal, further procedures are in the discretion with the bank who many charges more interest, changes in tenure, further compliance and collateral documentation. The users show grievances as the government is vague about the disbursement which gives the bank the power to demand further requirements and documentation before the actual disbursement of the loan.

SolutionBuggy is an exclusive and dedicated platform for the Manufacturing Sector in India. It seamlessly bridges the gap between the industrial sector and professionals for on-demand consultation and services including projects. It connects SMEs and Large Scaled Industries with Industrial Consultants / Experts and Industrial Product Suppliers over the internet for collaboration and success.

It is an integrated platform wherein industries can share their issues/ problems and post requirements; consultants/ experts can showcase their capabilities and offer services and solutions and suppliers can list their products to match the industry requirements.

SolutionBuggy
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About the Author: Arjun N

Founder of SolutionBuggy who has about 15 years of experience in manufacturing industries. An entrepreneur with astute sales and marketing skills.
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