Looking for a business loan but are frightened by the disconcerting process?
Here is an awesome solution for you, now forget making rounds of your bank for weeks, all that unmanageable paperwork, and dealing with staff that is less than cooperative. And forget the guarantee too!
Here’s a government website where you can get approval for your business loan within an hour. Or in 59 minutes, as Prime Minister Narendra Modi described when he announced several benefits yesterday for the medium, small and micro enterprises (MSME) sector. The offer of ‘Rs 1 crore loan in 59 minutes’ was part of PM Modi’s 12-point action plan for MSMEs announced yesterday.
The government’s website for MSME borrowers offers automated processing of loan that provides with an in-principal approval in less than an hour. The automated, contact-less business loan approvals are currently provided for loans worth Rs 10 lakh to Rs 1 crore. The rate of interest starts from 8% and collateral coverage is not mandatory because these loans are connected to the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme.
The website reduces the turnaround time from 20-25 days to 59 minutes. After approval, the loan will be disbursed in about a week.
- 1 Log in here and get a loan approval in these 10 quick and simple steps:
- 1.1 Remember, before you log in to the website, you need to have these details and soft copies of documents with you:
Log in here and get a loan approval in these 10 quick and simple steps:
Provide your name, email address and a mobile number on which you will receive an OTP.
2. Answer 4 questions
You need to answer four simple questions such as whether you are registered with GST and have been filing your GST returns regularly and have never defaulted on a loan.
Provide your GST details
Provide tax info
You can either upload your tax returns in XML format or login with your tax credentials — your PAN and date of incorporation.
Provide bank account info
You can either upload your bank statements or log in with your net banking credentials.
Provide details of company directors
Provide loan info
Now you have to provide details of your business, the purpose of the loan, any collateral security, and any previous loans.
Select the bank
Select the bank from where you want a loan. Currently, about a dozen banks are linked with this website.
You will have to pay a convenience fee of Rs 1,000 + GST.
Download approval letter
This is the last step. Your approval letter is ready to be downloaded.
Remember, before you log in to the website, you need to have these details and soft copies of documents with you:
1) GST Identification Number,
2) Income tax returns in XML format or your PAN and date of incorporation,
3) Bank statement for last six months in PDF format or your net banking credentials,
4) Details of director and owners and other basic ownership details.
However, one should remember that this is sanctioning of a loan and not disbursal. Banks may ask for further clarification, documents to process it further.
So, what are you waiting for?
Enroll in the process and claim your loan to get a kick start in your business.
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