MSME Business Loans for Startups in 59 Minutes: streamlining the loan taking process
The Indian government announced a new plan, MSME Business Loans for Startups in 59 Minutes. This scheme is regarded as a ‘Diwali Gift’ for startups to enjoy financial support for their growing business venture. Government has launched this scheme with the collaboration of Small Industries Development Bank of India and allow budding startups to apply for a business loan online with just a few clicks and get it easily.
Under the scheme, startups will be granted loans of up to ₹ 1 crore in less than 1 hour. The minimum amount that entrepreneurs can borrow is ₹ 10 lakh and the maximum is ₹ 1 crore. The rate of interest begins from 8%. The loan amount is disbursed in 7-8 working days after the approval in principle of the application.
The government did not specify anything about the eligibility criteria. All the companies fall under the micro, small or medium scale are eligible to apply for this scheme.
- Bank statement in PDF format for all business-related accounts (Last 6-month)
- e-KYC paper
- Income tax returns for the last 3 years including income tax codes and e-filing details
- GST certification ( GST ID and password)
- Ownership certificates and complete details of current ventures of the applicant
- Personal and educational details of the applicant
How to Apply
Step – 1:Go through the link
Step- 2: Register yourself by providing your name, email address and a mobile number on which you will receive OTP
Step- 3: After registration, you will get a few questions, fill the answer and proceed
Step- 4: Provide your GST details
Ste-5: Provide information related to tax, here you can upload your tax returns in XML format or login with your tax credentials as per your convenient
Step- 6: Submit your bank details, you can upload bank statement for last Six months in PDF Format or log in with net banking credentials
Step-7: Fill complete details about the director or owners (basic, personal, educational & ownership details)
Step- 8: Give your business details, the purpose of taking loan and information, and mention details if you have taken any collateral security or previous load earlier
Step- 9: There are numerous banks listed under the scheme, select any bank as per your wish
Step- 10: To avail this loan there is a confidence fee of 1000+ GST, pay it and proceed
Step- 11: In the last step download your approval letter
Even in this modern day, a lot of people are away from banking facilities. This scheme aims to empower raising entrepreneurs to get funding from banks and financial institutions without any hurdle in a very short period.