Government and its various agencies have undertaken several programmes and initiatives to promote the Medium, Small and Micro Enterprises and boost the sector. One such step is the 59-Minute Loan Approval Scheme for the MSME sector by the Public Sector Banks (PSBs). As per the recent data issued by the Ministry of Micro, Small and Medium Enterprises over 2 lakh loans were approved by the public sector banks till February 1, 2021 under this scheme. 2,23,501 loans worth Rs 72,502 Crore have been sanctioned by various public sector banks since the launch of the scheme in November 2018. From the total approved amount, around Rs 59,548 Crore have also been disbursed to the MSMEs as well. SMBs in India To Benefit As Google Announces Rs 109 Crore for Small and Micro Enterprises in the Country.

The  59-Minute loan approval scheme primarily focuses on individuals and the MSMEs with the aim to ensure easy credit to both of them. It undertakes the automation and the digitisation of the the various steps involved with the loan sanction activity to speed up the entire process and the credit gets approved by the public sector bank in less than 59 minutes. Terms and conditions are flexible and the borrower has the option to choose from various public sector banks. It provides various types of loans including working capital loan, mudra loan, term loan among others are offered to MSMEs under this scheme.

Business loan with the principal amount ranging between from Rs 1 Lakh to Rs 5 Crore are offered under the scheme. The borrower may or may not be asked to provide for collateral depending upon the loan amount. A minimum interest rate starting from 8.5 per cent is charged on the principal amount. Mudra loan are currently being provided for Rs 10,000 to Rs 10 Lakh. It is integrated with the government’s Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) to check borrower’s eligibility. Startups and MSMEs in India Get Major Boost As Indian Bank Signs MoU With SID of IISc for Extending Exclusive Credit Facility to Businesses.

In order to avail the loans under this scheme, an MSME is required to provide its GST Identification Number, Income Tax Returns, six-month bank statements, and owner’s details including personal, educational information and the ownership details of the enterprise. If an MSME is able to furnish all the required documents, it can easily apply for credit through the 59 Minute Loan Approval Scheme.