In a bid to boost credit availability to Micro, Small and Medium Enterprises (MSMEs), Finance Minister Arun Jaitley has launched a web portal through which one can avail loans up to Rs 1 crore in just 59 minutes. The portal will enable principal approval of loans up to Rs 1 crore for MSMEs from Small Industries Development Bank of India (SIDBI) and 5 Public Sector Banks (PSBs).

The web portal is www.psbloansin59minutes.com. “The portal sets a new benchmark in loan processing and reduces the turnaround time from 20-25 days to 59 minutes,” the finance ministry said in a statement. Upon approval, the loan will be disbursed in 7-8 working days. On this website, in-principle approval of loans will not require any physical documents.

Here are key features of the MSME loan in 59 minutes plan:

1. 1. MSMEs will be able to apply for loans from SIDBI and 5 PSU Banks — State Bank of India, Bank of Baroda, Punjab National Bank, Vijaya Bank and Indian Bank.
   2. MSMEs will be able to connect with banks without visiting the branch. There will be no human intervention until the sanction and or disbursement stage.
   3. The portal will be using “sophisticated algorithms” to read and analyse data points from sources such as IT returns, GST data, bank statement etc.
   4. MSMEs can also get loans up to Rs 2 crore without any collateral using this portal.

While applying for the loans, one will require: 

1. 1. GST Identification Number (GSTIN), GST User-ID & Password
   2. Income Tax E Filing password & Date of Incorporation/ Birth OR ITR for latest 3 years in XML format
   3. Current A/c – Net Banking: Username & Password or Bank Statement for last 6 months in PDF format
   4. Director/Partner/Proprietor details: Basic, Personal, KYC, Educational details & ownership in the firm
   5. Convenience fee Rs 1000 + GST on in-principle approval.