Startup City Magazine
A monthly magazine for business startups and young entrepreneurs.

MSME Business Loans for Startups in 59 Minutes: streamlining the loan taking process 


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.

Eligibility Criteria

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.

Important Documents

  • 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.

You might also like