10 easy steps on this website, Auto News, ET Auto


Need a business loan but are deterred by the daunting process? Forget making rounds of your bank branch for weeks, dealing with staff that is less than cooperative, and all that cumbersome paperwork. And forget the collateral too!

Here’s a government website where you can get approval for your business loan within an hour. Or in 59 minutes, as Prime Minister Narendra Modi described when he announced several benefits yesterday for the medium, small and micro enterprises (MSME) sector. The offer of ‘Rs 1 crore loan in 59 minutes’ was part of PM Modi’s 12-point action plan for MSMEs announced yesterday.

The government’s website for MSME borrowers offers automated processing of loan that provides with a in-principal approval in less than an hour. The automated, contact-less business loan approvals are currently provided for loans worth Rs 10 lakh to Rs 1 crore. The rate of interest starts from 8% and collateral coverage is not mandatory because these loans are connected to Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme.

The website reduces the turnaround time from 20-25 days to 59 minutes. After approval, the loan will be disbursed in about a week.

Log in here and get a loan approval in these 10 quick and simple steps:

1. Register
Provide your name, email address and a mobile number on which you will receive and OTP.
Rs 1 crore loan in 59 minutes for MSMEs: 10 easy steps on this website
2. Answer 4 questions
You need to answer four simple questions such as whether you are registered with GST and have been filing your GST returns regularly and have never defaulted on a loan.
Rs 1 crore loan in 59 minutes for MSMEs: 10 easy steps on this website
3. Provide your GST details
Rs 1 crore loan in 59 minutes for MSMEs: 10 easy steps on this website

4. Provide tax info
You can either upload your tax returns in XML format or login with your tax credentials — your PAN and date of incorporation.
Rs 1 crore loan in 59 minutes for MSMEs: 10 easy steps on this website
5.Provide bank account info
You can either upload your bank statements or log in with your netbanking credentials.
Rs 1 crore loan in 59 minutes for MSMEs: 10 easy steps on this website
6. Provide details of company directors
Rs 1 crore loan in 59 minutes for MSMEs: 10 easy steps on this website

7. Provide loan info
Now you have to provide details of your business, the purpose of loan, any collateral security and any previous loans.
Rs 1 crore loan in 59 minutes for MSMEs: 10 easy steps on this website
8. Select the bank
Select the bank from where you want a loan. Currently, about a dozen banks are linked with this website.
Rs 1 crore loan in 59 minutes for MSMEs: 10 easy steps on this website
9. Pay fee
You will have to pay a convenience fee of Rs 1,000 + GST.
Rs 1 crore loan in 59 minutes for MSMEs: 10 easy steps on this website
10. Download approval letter
This is the last step. Your approval letter is ready to be downloaded.
Rs 1 crore loan in 59 minutes for MSMEs: 10 easy steps on this website
Remember, before you log in to the website, you need to have these details and soft copies of documents with you —

1) GST Identification Number,
2) Income tax returns in XML format or your PAN and date of incorporation,
3) Bank statement for last six months in PDF format or your netbanking credentials,
4) Details of director and owners and other basic ownership details.

However, one should remember that this is sanctioning of a loan and not disbursal. Banks may ask for further clarification, documents to process it further.



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