1. Introduction to PSB Loans in 59 Minutes
4. Loan Amount & Interest Rates
6. Step-by-Step Application Process
7. List of Participating Banks
8. Loan Repayment & Moratorium
9. Pros & Cons of PSB 59-Minute Loans
10. Common Reasons for Rejection & Solutions
11. Government’s Role & Policy Support
12. Success Stories
13. Comparison with Other Business Loans
14. Tips to Improve Approval Chances
15. Future of PSB 59-Minute Loans
16. Conclusion
17. FAQ
1. Introduction to PSB Loans in 59 Minutes
The PSB Loan in 59 Minutes is a revolutionary scheme launched by the Government of India in November 2018 to provide quick and hassle-free credit to Micro, Small, and Medium Enterprises (MSMEs).
Why Was This Scheme Introduced?
- To address the lack of working capital for small businesses.
- To reduce loan approval time from weeks to under an hour.
- To digitalize the lending process and minimize paperwork.
How Does It Work?
- Businesses apply online via the PSB Loans in 59 Minutes portal ([https://www.psbloansin59minutes.com](https://www.psbloansin59minutes.com)).
- An AI-based system evaluates or check eligibility instantly.
- Approved applicants receive an in-principle loan sanction letter within 59 minutes.
- Final disbursement happens after bank verification (usually within 7-10 days).
2. Key Features & Benefits
✅ Collateral-Free Loans: Up to ₹5 crore without security.
✅ Ultra-Fast Approval: Sanction letter in under an hour.
✅ Competitive Interest Rates: Starting at 8.5% per annum. (varies by bank).
✅ Minimal Documentation: GST, ITR, and bank statements are sufficient.
✅ No Processing Fee: Zero cost for application.
3. Eligibility Criteria
Who Can Apply?
- MSMEs registered under Udyam Registration.
- Startups recognized by DPIIT(Department for Promotion of Industry and Internal Trade).
- Self-employed professionals (CAs, doctors, etc.).
- Businesses with at least 3 years of operations (exceptions for startups).
Credit Score & Financial Health
- Minimum CIBIL score: 650+
- No defaults in past loan repayments.
- Profitable or stable revenue (for existing businesses).
4. Loan Amount & Interest Rates
| Loan Amount | Interest Rate | Repayment Tenure |
|---|---|---|
| Up to ₹10 lakh | 8.5% - 12% | 3-5 years |
| ₹10 lakh - ₹50 lakh | 9% - 13% | 5-7 years |
| Above ₹50 lakh - ₹5 crore | 10% - 15% | 7-10 years |
(Note: Women entrepreneurs & SC/ST borrowers get 0.25% lower interest rates.)
5. Documents Required
- Business Proof: Udyam Certificate, GST Registration.
- KYC Documents: Aadhaar, PAN, Address Proof.
- Financial Statements: 6-month bank statements, ITR (last 2 years).
- Project Report (for loans above ₹10 lakh).
6. Step-by-Step Application Process
1. Register on PSB 59-Minute Portal ([www.psbloansin59minutes.com](https://www.psbloansin59minutes.com)).
2. Fill in Business & Loan Details (amount, purpose).
3. Upload Documents (GST, bank statements).
4. Get In-Principle Approval in 59 minutes.
5. Visit Bank Branch for final verification.
6. Loan Disbursal within 7-10 days.
(Pro Tip: Apply between 10 AM - 2 PM for fastest processing.)
7. List of Participating Banks
- Public Sector Banks: SBI, PNB, Bank of Baroda, Canara Bank.
- Private Banks: HDFC, ICICI, Axis Bank.
- Regional Rural Banks (RRBs).
(Full list available on the official portal www.psbloansin59minutes.com and you can also search on google whether your bank is giving loans under this scheme and you can also reach another banks if your bank is not available.)
8. Loan Repayment & Moratorium
- EMI Options: Monthly, quarterly, or bullet payments.
- Moratorium Period: Up to 6 months (case-by-case basis).
- Prepayment Penalty: 0-2% (varies by bank).
(moratorium period is a temporary pause or suspension of loan repayments.
How it works
- Temporary pause:
You are not obligated to make monthly loan payments during the moratorium period.
- Interest continues to accrue:
Even though you aren't paying, interest is still charged on your principal loan amount.
- Increased loan cost:
Because interest accrues, the overall cost of your loan will increase. )
9. Pros & Cons
Advantages
✔ No collateral required.
✔ Faster than traditional loans.
✔ Low-interest rates for MSMEs.
Disadvantages
❌ Strict eligibility (CIBIL 650+ mandatory).
❌ Final approval depends on bank checks.
10. Common Reasons for Rejection & Solutions.
- Low CIBIL Score → Improve credit history.
- Incomplete Documents → Reapply with correct papers.
- Business Not Profitable → Show future revenue projections.
11. Government’s Role & Policy Support
- It is linked with CGTMSE for collateral-free guarantee.
- It is a part of Atmanirbhar Bharat Abhiyan.
12. Success Stories
- Case Study 1: A Mumbai-based textile SME got ₹50 lakh in 3 days.
- Case Study 2: A Delhi startup secured ₹20 lakh for machinery.
13. Comparison with Other Business Loans
| Parameter | PSB 59-Minute Loan | MUDRA Loan | Traditional Bank Loan |
|---|---|---|---|
| Max Amount | ₹5 crore | ₹10 lakh | ₹10 crore+ |
| Processing Time | 59 mins | 1-2 weeks | 4-6 weeks |
| Collateral | Not required | Not required | Required |
14. Tips to Improve Approval Chances
✅ Maintain a CIBIL score above 700.
✅ Keep GST filings updated.
✅ Apply via public sector banks (higher approval rates).
15. Future of PSB 59-Minute Loans
- AI-driven approvals for higher accuracy.
- Higher loan limits (up to ₹10 crore proposed).
16. FAQs
1. What is the maximum loan amount under PSB 59-minute scheme?
**Ans**: ₹5 crore.
### **2. Is collateral required?**
**Ans**: No, loans up to ₹5 crore are unsecured.
### **3. How long does final disbursement take?**
**Ans**: 7-10 days after in-principle approval.
17. Conclusion
The PSB Loan in 59 Minutes is a game-changer for Indian MSMEs, offering quick, collateral-free credit. Follow this guide to secure funding for your business!
🔗 Apply Now: [www.psbloansin59minutes.com](https://www.psbloansin59minutes.com)
16. FAQs
What is the maximum loan amount under PSB 59-minute scheme?
₹5 crore.
collateral required?
No, loans up to ₹5 crore are unsecured.
How long does final disbursement take?
7-10 days after in-principle approval.
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