Imagine opening a Govt. portal in your home at 8 AM, and applying for a loan. Then start for your office which is an hour’s drive away.
By the time you reach office, your loan is approved. That too Rs 1 crore, without any physical documentation.
Yes, it has become possible, and this is not fiction anymore.
Welcome to the new age of technology-powered loans for SMEs. This is a big Diwali bonanza for all entrepreneurs in India from PM Modi.
This Portal Will Gove You Instant Loan Upto Rs 1 Crore
Today, PM Modi unleashed a major initiative under The MSME Outreach Programme, which aims to help and encourage small entrepreneurs in India.
Under this initiative, a new portal has been launched: https://www.psbloansin59minutes.com/home
SMEs who are filing GST can apply for a loan via this portal, and there is no need to submit any physical document as well.
You need to enter:
- GST Number
- Income tax returns in XML formats
- Last 6 months bank statements
- Details of the Directors/owners
- Inprinciple loan is approved in 59 minutes
While launching this portal, PM Modi said, “In the time taken for you to reach your office, you can now get a loan. We had run a pilot and I had set a target of 72,000 MSMEs under this. As of today 72,680 have been on boarded,”
Since the testing of this new system started, 72,000 loans worth over Rs 23,852 crore has already been dispursed.
Who Will Sponsor The Loan?
This facility of instant loan approval has been arranged by SIDBI, and 5 public sector banks. A consortium has been incubated under the aegis of Department of Financial Services (DFS), Ministry of Finance, powered by SIDBI, and 5 public sector banks: SBI, Bank of Baroda, PNB, Vijaya and Indian Bank.
Earlier, SME loans took 25-30 days for approval, which has been now reduced to mere 59 minutes. Once approved, the loan will be dispursed in 7 days.
This is the only platform in the market, which includes GST, ITR, Bank Statement Analyzer, Fraud Check and Bureau Check under one umbrella, online and available 24 * 7.
MSME Outreach Program: Few Highlights
Along with the launch of this portal, several unique initiatives were also launched:
- While filing GST, the Income Tax portal will ask whether you need any loan. Those who are filiing GST can now get upto 2% rebate on interest of loans
- Exporters seeking loans on pre-export and post-export can now get rebate of 5% on loans, which was 3% earlier.
- Companies with more than Rs 500 crore have been mandated to join Trade Receivables e- Discounting System (TReDS), so that smaller SMEs don’t face cash crunch
- PSUs have been mandated to procure 3% of their services/goods from SMEs which are led by women
- SMEs will have to file only 1 annual return on 8 labour laws, and 10 Central laws
- Several penalties will be softened, and simplified, with due changes in the Companies Act
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