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How to Apply for MSME Loan in 59 Minutes

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.

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India’s largest manufacturing platform for Best small manufacturing business ideas in India helping industries to start manufacturing business and any new plant setup

India’s largest manufacturing platform for Best small manufacturing business ideas in India helping industries to start manufacturing business and any new plant setup

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PM Modi Announces MSME’s Loan up to 1 Crore In 59 Minutes

How the plan will help MSME sector. Who are the beneficiaries? How it will impact the manufacturing sector growth and GDP. Is the effect immediate? Will there be any misuse of funds and leakages etc….

On November 2nd Prime Minister Narendra Modi announced a loan sanction of up to a crore for MSMEs. This has definitely been received as a progressive move toward the betterment of MSME sector. The scheme also includes or mandates the companies to use up to 25% of total purchase instead of 20% with 3% reserved for women entrepreneurs, the interest rate that is being charged is 8%. The loan can be applied on the online portal and would be approved within 59 minutes after which the process takes up to 7-8 working days to get disbursed.

By providing GST details, Income Tax details, Bank account details an entrepreneur can avail the loan. The GST registered firms shall also get a rebate of 2% on the interest paid on the loan. Based on the eligibility, there has been no specific information provided however it would limit to MSMEs. 6,000 crore has been set aside toward the enhancement of technology which would ease and enhance the manufacturing sector. The main criteria however is to boost the growth of manufacturing sector and to increase GDP as MSME play a major role in the contribution towards GDP by contributing up to 30%, there have been five aspects that is focused on. “Access to credit, access to market, technology up-gradation, ease of doing business, and a sense of security for employees”.

Regarding the effect being immediate, which can be learnt through the user feedback. The feedback however has not been very positive as the users have started to complain about the delay in receiving OTPs, or about the catch of just “sanction” of the loan. This does not talk about the disbursement which would leave the banks to decide to gather additional processes of documentation hence the loan as per the scheme is either being approved or sanctioned but not disbursed. Because the banks do have the authority to seek for further documentation again, there could be delay in the disbursement of funds. However, the effect can only be learnt by the more usage of this scheme, which the government might seek to better it. The process is said to be user – friendly which would enable most of the MSMEs to get their hands on it.

As the disbursement has not been successful yet, news about the misuse and leakages has not yet been brought to light. However, as the government has not been specific about the failure in recovery of the loan, the chance of the banks being at a loss is highly likely. The scheme is receiving criticism for being unclear or the information being vague regarding the disbursement, recovery or even the eligibility of the loans. Also, the fact that applicant is expected to pay a convenience fee has been also thrown under the negative shadow. Regardless of the criticism, the fee being a small amount of Rs. 1,000 does enable almost all of the MSME to be able to bear the cost. As the scheme is still new, it would be difficult to judge its effectiveness yet, but it has at least opened doors for widening their business and enhancing technology for MSMEs and Women Entrepreneurs.

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.

[ourgurup-blog]

PM Modi Announces MSME’s Loan up to 1 Crore In 59 Minutes

How the plan will help MSME sector. Who are the beneficiaries? How it will impact the manufacturing sector growth and GDP. Is the effect immediate? Will there be any misuse of funds and leakages etc….

On November 2nd Prime Minister Narendra Modi announced a loan sanction of up to a crore for MSMEs. This has definitely been received as a progressive move toward the betterment of MSME sector. The scheme also includes or mandates the companies to use up to 25% of total purchase instead of 20% with 3% reserved for women entrepreneurs, the interest rate that is being charged is 8%. The loan can be applied on the online portal and would be approved within 59 minutes after which the process takes up to 7-8 working days to get disbursed.

By providing GST details, Income Tax details, Bank account details an entrepreneur can avail the loan. The GST registered firms shall also get a rebate of 2% on the interest paid on the loan. Based on the eligibility, there has been no specific information provided however it would limit to MSMEs. 6,000 crore has been set aside toward the enhancement of technology which would ease and enhance the manufacturing sector. The main criteria however is to boost the growth of manufacturing sector and to increase GDP as MSME play a major role in the contribution towards GDP by contributing up to 30%, there have been five aspects that is focused on. “Access to credit, access to market, technology up-gradation, ease of doing business, and a sense of security for employees”.

Regarding the effect being immediate, which can be learnt through the user feedback. The feedback however has not been very positive as the users have started to complain about the delay in receiving OTPs, or about the catch of just “sanction” of the loan. This does not talk about the disbursement which would leave the banks to decide to gather additional processes of documentation hence the loan as per the scheme is either being approved or sanctioned but not disbursed. Because the banks do have the authority to seek for further documentation again, there could be delay in the disbursement of funds. However, the effect can only be learnt by the more usage of this scheme, which the government might seek to better it. The process is said to be user – friendly which would enable most of the MSMEs to get their hands on it.

As the disbursement has not been successful yet, news about the misuse and leakages has not yet been brought to light. However, as the government has not been specific about the failure in recovery of the loan, the chance of the banks being at a loss is highly likely. The scheme is receiving criticism for being unclear or the information being vague regarding the disbursement, recovery or even the eligibility of the loans. Also, the fact that applicant is expected to pay a convenience fee has been also thrown under the negative shadow. Regardless of the criticism, the fee being a small amount of Rs. 1,000 does enable almost all of the MSME to be able to bear the cost. As the scheme is still new, it would be difficult to judge its effectiveness yet, but it has at least opened doors for widening their business and enhancing technology for MSMEs and Women Entrepreneurs.

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.