PM announces loans to MSMEs in 59 min - Fusion - WeRIndia

PM announces loans to MSMEs in 59 minutes

PM announces loans to MSMEs in 59 minutes

Yesterday, Narendra Modi, Prime Minister of India launched a program for Micro, Small and Medium Enterprises (MSMEs).

The program, Micro, Small and Medium Enterprises (MSME) Support and Outreach Programme is intended to improve the credit access to MSMEs.

The program was launched by the PM at Vigyan Bhawan in New Delhi.

While launching the program, PM said that it is an online platform to enhance the credit facilities for their businesses.

Using this online facility, they can get loans up to ₹1 crore within just 59 minutes. That means the turnaround time for processing loan is just 59 minutes.

After the approval of loan, the amount will be disbursed in 7 or 8 working days.

The program covers 100 districts of the country for 100 days.

The MSME sector comprises a huge network of more than 63 million units and contributes around 30 percent to the GDP. It employs 111 million people.

The features and requirements of the MSME loan are follows:

  • The MSMEs can apply for loans from SIDBI and also from banks like State Bank of India, Bank of Baroda, Indian Bank, Punjab National Bank and Vijaya Bank.
  • There is no need to visit the banks for the loan process. They can connect with them online. At any stage of loan sanction or disbursement, there is no human intervention.
  • The online portal uses “sophisticated algorithms” to analyze the data from the given bank statement, IT returns, GST data etc.
  • The best point is that the MSMEs can get loan up to ₹1 crore without any collateral.
  • Those who want to apply for the loan should have their GSTIN, GST User-ID and password, and income tax returns for the latest 3 years in XML format. Or they can have IT E Filing password and Date of Incorporation/ Birth details with them in addition to GST particulars.
  • They also should have username and password for the net banking of current A/c or bank statement for the last 6 months in PDF format.
  • Details of director, proprietor or partner including basic, educational, personal, KYC etc. and their ownership in the firm are essential.
  • One need to pay convenience fee of ₹1000 plus GST on in-principle approval.

Image credit: Image by mohamed Hassan from Pixabay (Free for commercial use)

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