The Indian government announced a new plan, MSME Business Loans for Startups in 59 Minutes. This scheme isregarded as a 'Diwali Gift' for startups to enjoy financial support for their growing business venture.
The government has launched this scheme with the collaboration of the Small Industries Development Bank of India and allows 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 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 eligibility criteria. All the companies that fall under the micro, small, or medium scale are eligibleto apply for this scheme.
Bank statement in PDF format for all business-related accounts (Last 6-month)
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
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 in 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 log in with your tax credentials at your convenient
Step- 6: Submit your bank details, you can upload your bank statements for the last six months in PDF Format or log in with net banking credentials
Step-7: Fill in complete details about the director or owners (basic, personal, educational & ownership details)
Step- 8: Give your business details, the purpose of taking the 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 of 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 hurdles in a very short period.