MSMEBusiness Loans for Startups in 59 Minutes: streamlining the loan taking process
The Indian government announced anew plan, MSME Business Loans for Startups in 59 Minutes. This scheme isregarded as a 'Diwali Gift' for startups to enjoy financial support for theirgrowing business venture. Government has launched this scheme with thecollaboration of Small Industries Development Bank of India and allow buddingstartups to apply for a business loan online with just a few clicks and get iteasily.
Under the scheme, startups will begranted loans of up to ₹ 1 crore in less than 1 hour. The minimum amount thatentrepreneurs can borrow is ₹ 10 lakh and the maximum is ₹ 1 crore. The rate ofinterest begins from 8%. The loan amount is disbursed in 7-8 working days afterthe approval in principle of the application.
The government did not specify anything about the eligibilitycriteria. All the companies fall under the micro, small or medium scale are eligibleto apply for this scheme.
Step – 1:Go through the link
Step- 2: Register yourself by providing your name, email address anda mobile number on which you will receive OTP
Step- 3: After registration, you will get a few questions, fill theanswer and proceed
Step- 4: Provide your GST details
Ste-5: Provide informationrelated to tax, here you can upload your tax returns in XML format or loginwith your tax credentials as per your convenient
Step- 6: Submit your bankdetails, you can upload bank statement for last Six months in PDF Format or login with net banking credentials
Step-7: Fill complete detailsabout the director or owners (basic, personal, educational & ownershipdetails)
Step- 8: Give your business details, the purpose of taking loan andinformation, and mention details if you have taken any collateral security orprevious load earlier
Step- 9: There are numerous banks listed under the scheme, select anybank 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 ofpeople are away from banking facilities. This scheme aims to empower raisingentrepreneurs to get funding from banks and financial institutions without anyhurdle in a very short period.