Micro, Small and medium Enterprises or
the MSME is one department that is monitored by the central government. It offers
medium, small and micro ventures with financial assistance. There are several
loan packages, which are active. But the central government has launched a new
portal that makes it possible for interested candidates to apply for loan in
just 59 minutes.
Launch
details:
|
|
Portal
|
|
Scheme name
|
MSME Business Loans in 59 Minutes
|
Launched by
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Arun Jaitley, Finance Minister
|
Launch Date
|
September, 2018
|
Supervised by
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Micro, Small and Medium Enterprises Department
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Target beneficiaries
|
Small Enterpreneurs
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Other government loan scheme
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Pradhan Mantri Mudra Yojana
|
Key features, interest rates and subsidy
1. Financial assistance and
encouragement – the MSME has come up
with this new loan scheme for offering financial assistance and encouragement
to the interested entrepreneurs.
2. New and existing ventures – the scheme will help both new businesses as well as
established companies to attain financial assistance from the central
government.
3. Total amount attainable – as mentioned by the Finance Minister, candidates will be
able to attain any amount, as long as it does not cross the Rs. 1 crore mark.
4. Money in bank account – all monetary transfers will be made via the active bank
account of the applicants. After enrollment, the central authority will send the
money within 7 to 8 days.
5. Bank associated – the finance department has suggested that all loans will
be sanctioned through small industries development banks or SIDBs. The central government
has also picked 5 public sector banks for this task.
6. Interest rate and subsidy – interest rate would range from business to business and
your credit rating.
No information has been given on any
subsidy or interest subvention.
Eligibility criteria for 59 Minutes Loan
Though the central government has not
mentioned anything about the eligibility criteria, it is clear that only
companies, which fall under the micro, small, or medium scale will be allowed
to apply for this credit scheme.
Documents required for 59 minutes loan
1. GST verifications – the company owners must also keep their GST details handy
so that they can type in the necessary GST ID Codes.
2. Income Tax verifications – income tax codes and e-filing details are also necessary
for linking the application with tax system.
3. Bank account related
details – all applicants have to upload a PDF
version of their bank statement, spanning over six months.
4. Ownership details – as funds will be offered for business development,
applicants need to upload the ownership papers of the venture, along with
academic papers.
5. KYC – applicants will also have to upload a digitized version
of the KYC form.
How to get application form and apply through new portal?
1. MSME loans were offered earlier as well. But the process was
long and took considerable time. With this unique portal, applicants will be
able to complete the entire procedure in just 59 minutes.
2. The interested applicants will have to log on to the
official website to get their hands on the digitized enrollment document. This is
possible by clicking on the Portal.
3. The applicant will have to complete the sign up process. This
is the primary registration that will pave the path for actual registration.
4. He/she has to type in the name, personal email ID, and
active mobile number.
5. Then he/she needs to click on the green button that is
marked as “GET OTP”.
6. This will trigger the site to send a unique code to the
registered mobile number.
7. After typing in the OTP in the correct slot, the person has
to click on the blue button that is marked as “Proceed”.
8. The candidate may change the password for security purposes.
After this, he/she has to click in the link that is marked as “Need fund for
Existing / New Business”
9. This will bring up the actual MSME Portal-based enrollment form
on the monitor.
10. Applicant needs to read and fill in the form carefully. The next
step involves selection of the bank that will offer the loan.
11. Once this is done, the approval will come promptly.
12. After this, the applicants has to link this enrollment request
with his/her GST and IT Accounts. This helps the site to identify that the
candidate is already a part of the formal economy. The bank statement details
are also necessary for prompt transfer of funds.
13. Only new members need to gain access through this process. In
case registration has been done prior to this, applicants need to enter their mobile
number or email id to gain access to the site.
Financial Inclusion Index
The financial inclusion index or the
FII is a scale that will come in handy to measure the percentage of use of
authorized financial facilities. It will also measure the percentage of access
that people have to these facilities. The system will require three dimensions
to make a correct measurement They are “Access, Usage, and Quality of all
financial products and services.”
Jan Dhan Darshak Application
Apart from all the new initiatives, taken
by the central government, a new app has also come up. The name of this
application is Jan Dhan Darshak App, and it will come in handy to make banking
facilities easily accessible for all people. For this, the app will be linked
with 5 lakh bank touch points. Post offices, branches of several banks, ATM
booths, common service centers and correspondents from the banks will fall in
the list of bank touch points.
Many people don’t get the banking
facilities as they live in rural areas. Creating banking touch points will
bring these services within their reach. According to the attest announcement
the finance department wants to create a thick network of bank touch points so
that one touch point within the radius of 5 kilometers of any household in
India.
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