What is PSB Loans in 59 Minutes?
PSB Loans in 59 Minutes is a transformative digital initiative launched by the Government of India to simplify and expedite the MSME loan approval process. The platform was inaugurated by the Hon'ble Prime Minister on November 2, 2018, as part of the government's efforts to improve ease of doing business for MSMEs.
The portal leverages advanced technologies including data analytics, artificial intelligence, and machine learning to provide in-principle loan approvals to MSMEs within 59 minutes of submitting the online application. This revolutionary platform connects borrowers with Public Sector Banks (PSBs) through a seamless digital interface.
How the Platform Works
- • MSME registers on the portal and provides basic information
- • System automatically fetches data from GSTN, IT, and bank databases
- • Advanced analytics assess creditworthiness in real-time
- • Multiple banks review and provide in-principle approval
- • Borrower selects preferred bank and completes physical documentation
- • Final loan sanction and disbursement by selected bank
Key Objectives
Speed and Efficiency
Reduce loan processing time from weeks to just 59 minutes for in-principle approval
Digital Integration
Seamless integration with GSTN, Income Tax, and banking systems for data verification
Transparency
Objective assessment based on data rather than subjective judgment
Financial Inclusion
Enable MSMEs across India to access formal credit easily
Eligibility Criteria
To apply for a loan through the PSB Loans in 59 Minutes portal, applicants must meet the following eligibility criteria:
Borrower Requirements
MSME Status
The applicant must be a registered MSME (Micro, Small, or Medium Enterprise) under the Udyam Registration scheme.
GST Registration
Must have a valid GSTIN (GST Registration Number). The portal fetches GST data automatically for assessment.
ITR Filing
Should have filed Income Tax Returns for at least one year (preferably two years) for proper assessment.
Bank Account
Active business bank account with regular transactions for at least 6 months.
Loan Amount Eligibility
| Loan Type | Minimum Amount | Maximum Amount |
|---|---|---|
| Term Loan | ₹10 lakh | ₹5 crore |
| Working Capital | ₹10 lakh | ₹5 crore |
| Composite Loan | ₹10 lakh | ₹5 crore |
Eligible Entities
Eligible
- • Private Limited Companies
- • Limited Liability Partnerships (LLPs)
- • Partnership Firms
- • Sole Proprietorships
Not Eligible
- • Non-MSME entities
- • Entities without GST registration
- • Defaulters to banks/FIs
- • Entities with poor credit history
Features and Benefits
The PSB Loans in 59 Minutes portal offers several unique features that make it a game-changer for MSME financing:
Key Features
59-Minute Approval
Get in-principle loan approval from multiple banks within 59 minutes of completing the online application. This is a significant improvement over traditional loan processing that takes weeks.
Zero Physical Documentation Initially
No need to submit physical documents for in-principle approval. The system fetches data directly from GSTN, Income Tax, and bank databases.
Multiple Bank Options
Connects with 20+ Public Sector Banks. Receive offers from multiple banks and choose the one with the best terms.
Transparent Assessment
Loan assessment is based on objective data analytics rather than subjective judgment. Reduces human bias in lending decisions.
CA Connection
Option to connect with empanelled Chartered Accountants who can help with application preparation and documentation.
Benefits for MSMEs
Time Savings
Save weeks of running around banks. Complete process from one digital platform.
Cost Savings
No need for multiple bank visits, document photocopies, and consultant fees initially.
Better Terms
Compare offers from multiple banks and choose the best interest rate and terms.
Anywhere Access
Apply from anywhere in India. No geographical restrictions.
Portal Registration
Follow these steps to register on the PSB Loans in 59 Minutes portal:
Step 1: Visit the Portal
Step 2: Click on "Apply Now"
Select "New User" to create an account on the portal.
Step 3: Enter Basic Details
Provide name, email ID, mobile number, and create a password.
Step 4: Verify OTP
Enter OTP received on mobile and email to verify your identity.
Step 5: Complete Registration
Your account is now created. You can start the loan application process.
Login Process
- • Visit the portal and click "Login"
- • Enter your registered email ID or mobile number
- • Enter password
- • Complete CAPTCHA verification
- • Click "Login" to access your dashboard
Application Process
Once registered, follow this process to apply for a loan:
Step 1: Start New Application
Click on "New Loan Application" from your dashboard. Select the type of loan you need.
Step 2: Provide GST Details
Enter your 15-digit GSTIN. The system will automatically fetch your GST returns and compliance data from the GSTN portal.
Step 3: Enter ITR Details
Provide your PAN and income tax return details for the last 2 years. The system verifies this with the Income Tax database.
Step 4: Bank Account Information
Enter your business bank account details. The system analyzes your bank statements to assess cash flows.
Step 5: Loan Requirements
Specify the loan amount required, purpose (working capital, machinery, etc.), and preferred repayment tenure.
Step 6: Submit Application
Review all details and submit the application. The system starts the assessment process immediately.
Step 7: Receive In-Principle Approval
Within 59 minutes, receive in-principle loan offers from multiple banks with loan amount, interest rate, and terms.
Important Note
The 59-minute timeline is for in-principle approval based on the data provided. Final loan sanction requires physical document verification by the selected bank, which may take 7-14 days.
After In-Principle Approval
Once you receive in-principle approval, follow these steps to complete the loan process:
Steps After Approval
Step 1: Review Bank Offers
Compare the loan offers from different banks based on interest rate, processing fee, tenure, and other terms.
Step 2: Select Bank
Choose the bank that offers the best terms for your requirements. Click "Accept" on the chosen offer.
Step 3: Upload Documents
Upload scanned copies of required documents including KYC, financial statements, and project details.
Step 4: Visit Bank Branch
Visit the selected bank branch with original documents for physical verification.
Step 5: Credit Appraisal
The bank conducts its internal credit appraisal and due diligence based on the in-principle approval.
Step 6: Loan Sanction
Upon successful verification, the bank issues the final loan sanction letter.
Step 7: Disbursement
Execute loan agreement and receive loan disbursement in your bank account.
Timeline After Approval
| Stage | Timeline |
|---|---|
| Document Upload | 1-2 days |
| Branch Visit | 3-5 days |
| Credit Appraisal | 5-7 days |
| Final Sanction | 2-3 days |
| Disbursement | 1-2 days |