SIDBI loan-in-59-minute Scheme: Fueling Entrepreneurship or Just a Hype?
New Delhi, Nov 10 (KNN) – Among the 12 major announcements by Prime Minister Narendra Modi to help Micro, Small and Medium Enterprises (MSMEs), the most awaited announcement was the 59-minute financing for small industries.
After piloting the loan-in-59-minutes service, the prime minister publicly revealed the initiative on November 2 amid the launch of the MSME assistance and outreach program.
MSMEs can avail loans from SIDBI and five PSU banks, namely State Bank of India, Bank of Baroda, Punjab National Bank, Vijaya Bank, and Indian Bank.
Among all of this, recent news reports indicated that Capita World, an Ahmedabad-based private fintech company, is the greatest benefactor of the 59-minute loan scheme, which charges Rs 1000 for submitting an application. Although this company gathers all the essential data from MSMEs along with the loan application, according to the media report.
Small Industries Development Bank of India (SIDBI) clarified this by tweeting, "A consortium of six public sector banks led by SIDBI held 56% of the fin-tech company Capita World, giving it a public sector character."
Capita World is largely owned by public sector institutions, according to a tweet, and the choice of 'capita' word as a service provider for the 59-minute loan was determined through a bidding process.
SIDBI also noted in a tweet that a rigorous procedure was followed for shortlisting and selecting the platform and capita world, which included third-party validations and oversight.
According to SIDBI, psbloansin59minutes.com is a ground-breaking effort that provides simple access to SMEs registered on the GST platform and reporting income tax. It is covered by the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), thus no security is required.
SIDBI has clarified that the platform does not require passwords and that candidates simply need to download the required papers and upload them to the portal.
It is a strategic project sponsored by SIDBI and fostered under the auspices of the Ministry of Finance's Department of Financial Services (DFS).
The Small Industries and Development Bank of India-SIDBI, founded in 1990, strives to improve cash flow in the MSME sector in order to encourage and grow it, hence benefiting society and the nation's economy. This bank focuses on supporting, commercializing, and promoting new ideas, creative start-ups, and the development of small-scale businesses by giving funding and tailoring loan schemes to help MSMEs meet people's expectations by stimulating their own production and supply.
Purpose of Loan in 59 Minutes for MSMEs:
The primary aim of this program is to offer top-notch services to borrowers by uniting all banks on one platform. Surprisingly, this arrangement operated well and highlighted the challenges of operating in isolation in the financial ecosystem.
The key goal of this strategy is to assist MSMEs by boosting emergency credit loans at a speedier rate. lending Suisse, a well-known international lending institution, has recognized this strategy as one of the most significant efforts it has ever implemented. This strategy encourages small to medium-sized businesses, Mudra loan applicants, and corporations to obtain loans within an hour.
Eligibility Criteria:
Those interested in availing the 59-minute loan should familiarize themselves with the following eligibility criteria:
- This scheme is open to self-employed individuals, small and medium-sized organizations, and individuals having a definite GST complaint.
- Candidates must upload cash flow statements to the banks for verification.
Banks often qualify borrowers based on their source of income, individual ability to repay loan interest and principal, current bank credits, and other factors specified in the lending institutions' terms and conditions.
These are a few things you should be aware of before applying for scheme loans. In addition, the following documents are necessary to complete the application procedure.
Documents Required:
The following documents are necessary to obtain this loan in under 59 minutes:
- GST documentation
- Income tax returns
- Bank account statements for the last six months
- Company ownership documentation
- KYC information for the owner
- Documents relating to credit ratings/CIBIL
- Other pertinent papers
How to apply for the 59-minute loan?
To apply for the loan, you must first register at the PSB 59-minute loan official website. To access the website, click here. Follow the steps outlined below -
- Register on the website using your name, email address, and phone number. Then, confirm your registration by responding to an OTP message delivered to your mobile device.
- Enter the OTP and agree to the terms and conditions. Then proceed to the next step. Provide your GST information, including your password, GST number, and income tax information. Please submit your data in XML format. Alternatively, you can log in with your PAN or date of incorporation.
- After that, upload a six-month bank statement (in PDF format). You can view bank statements and other legitimate financial information by logging in with your net banking username and password.
- Next, furnish details about your directors, partnerships, sole proprietorships, and company entities. Select the main objective of the loan and provide precise information about prior or current loans taken for business foundation and maintenance.
- In this phase, you must choose the bank from which you want to process the loan. It should be noted that the scheme's interest rate changes from bank to bank. Finally, pay the Rs.1,000 application fee and tax before downloading the pending loan approval papers from the bank.
Conclusion:
This is all about the 59-minute loan scheme eligibility, the application process, the documents required, and the purpose of the loan for MSMEs. Make sure you understand each aspect of the scheme and its eligibility requirements before applying for it.
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