SIDBI 59 minute Loan Scheme: 2.19 lakh loans, 81 percent of sanctioned amount disbursed

The 59 minute in-principal scheme for loan approval by SIDBI which focuses on providing quick credit to MSMEs has sanctioned 2,35,511 numbers of loans, involving ₹78,738 crores  as per an announcement by the Ministry of Micro, Small and Medium Enterprises. Till Nov 1, 2021 the total number of loans that were disbursed was 2,19,526, involving ₹64,326 crores according to official data from the Ministry which is about 81 percent of the sanctioned amount.

The 59 Minute Loan Scheme which was announced by Prime Minister Narendra Modi on 2nd November, 2018 helps in providing loans to small businesses without any collateral. The loan is approved from the portal within 59 minutes and is usually disbursed within 8 to 10 working days.

What is the PSB 59 minute Loan Scheme?

The 59 minute Loan Approval Scheme by SIDBI (Small Industries Development Bank of India) is a loan scheme for Micro, Small and Medium Enterprises in India. Under this scheme, the government launched an online portal where small and medium businesses can avail loan in under an hour.

MSMEs under this scheme can get loan amount approval from ₹1 lakh to ₹5 crores from Public and Private Sector Banks (PSBs) and Non-Banking Financial Companies (NBFCs). The loan is provided at the rate of 8.50% onwards and is approved in 59 minutes. The loan is sanctioned or disbursed in 8 to 10 working days, thus greatly reducing the turnaround time for processing of the loans and saving precious time.

The scheme offers business loans including working capital loans and term loans to MSMEs for buying fixed assets like plant and machinery and raw material, upgrading technology, product development and expansion, and so on.

The PSB 59 minute loan scheme is beneficial for entrepreneurs who wish to expand their business or start a new one and need credit urgently. This initiative was taken by the Modi Government to promote self-employment under “Stand-up India Start-up India Scheme”. Loan approval in 59 minutes means that one can get a loan without even visiting the bank and standing in long queues to get approval.

Many public sector banks formed a consortium and have developed a web based fintech platform called psbloansin59minutes.com. There are more than 21 banks which provide the 59 minute loan under SIDBI. The list of banks participating under this scheme is as follows

Features of the Scheme

• Quick Approval 
• Less Documentation
• Automatic Approval System
• Apply at Multiple Banks
• Completely Secure
• Integrated with other Government Portals
• No collateral necessary
• No registration needed

Eligibility

• If you have a business or are self-employed the following documents are required - 

• Bank Statement for last 6 months
• GST registration and compliance
• Income tax returns
• Cash flow Statement for last 6 months

• The following factors are considered to determine eligibility for the loan - 

• Revenue generation of the borrower
• Ability of individual/business to repay the loan
• Presence of any existing credit facilities
• Discretionary terms and conditions as set by the lender

What are the documents required for loan application?

• GST details including GST Identification Number and GST username
• Details of Income Tax Returns
• Last 6 months bank statements in PDF
• Details of the loan
• Details of Partners/Proprietor/Directors
• E-KYC documents of the applicant

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