Business Loans: How to Get Up to Rs 1 crore in 59 minutes!

(Last Updated On: June 6, 2021)

This Diwali, MSME business loans just got easier!

As a business, getting loans to fast-track your venture can be a challenging task. Truckloads of paperwork, multiple visits to banks, and long queues are common and also tedious. But now the government is working towards helping you get business loans in just 59 minutes! It is a 12-point action plan to help you get a business loan of up to Rs. 1 Crore.

These automated, contact-less business loans range between Rs. 10 lakhs to Rs. 1 Crore. The rate of interest starts at 8% and collateral coverage is not mandatory. These loans are a part of the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme.

Additionally, the website has a turnaround time of 59 minutes to 20-25 days. Once the business loan has been approved, it will be disbursed in about a week.

Some features of the “Rs. 1 crore loan in 59 minutes” plan:

1. Compatible with existing banking processes.
2. MSME’s can apply with multiple banks at once.
3. Ensure complete information security.
4. Customize your loans as per the credit policy.
5. With the CGTMSE integration, the MSME borrower can get a collateral free loan.

Soft copies of documents required:

According to the Economic Times, here are the documents you will need to avail your business loan:

1. GST Identification Number
2. Income tax returns (XML format) or your PAN details.
3. Date of incorporation.
4. Bank statement for last six months in PDF format or your net banking credentials.
5. Details of director and owners and other basic ownership details.

Here’s how you can get a business loan approval in 10 steps:

• Sign up and register on the website.

Here, you can provide your personal details such as your name, email address and a mobile number. The phone number needs to be verified via an OTP.

Source: Economic Times

• Answer 4 business related questions:

These questions will help the government get a better understanding of your business:

1. Whether you are GST registered or not.
2. Have you been filing your GST returns?
3. Have you ever defaulted on the payment of your loans?

Source: Economic Times

• Provide your GST details:

As a process of getting your business loan approved, you would also need to fill in these additional details:

Source: Economic Times

• Provide tax-related information:

Your tax-related information will help the government get insight into your creditworthiness. You can upload your tax-related information in XML format or login directly with your ITR credentials.

Source: Economic Times

• Provide your bank account information:

Here, you can either upload your bank statements for 6 months or log in with your net banking credentials.

Source: Economic Times

• Provide  details of the company directors:

This will help the government get better insights into the founding members of your business. This will also help in getting a detailed understanding of your business, to help approve your business loan.

Source: Economic Times

• Provide loan information:

Once you are done with providing your personal details, you can fill in your loan details. Here, you can add information regarding the purpose of your loan, collateral securities (if you are proving any), and other information about your previous loans.

 

Source: Economic Times

• Select the bank:

Here, you can go through the list of various banks which are offering you loans. Here, you can also access information such as the loan types, the rate of interest, time period and other such details.

Source: Economic Times

• Convenience fee:

As part of processing the loan, you will have to pay a convenience fee of Rs 1,000 + GST.

Source: Economic Times

• Download your approval letter:

Congratulations!

You have reached the last step of your loan process. Now, you can download your approval letter.

Source: Economic Times

What’s more?

Looking for additional financial aid? Here are some other easy business loans your business can use.

Get started with your business in under two minutes with Instamojo! No set-up fee, no hidden charges.

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