MSMEs to get easier credit, loan approval in 59 minutes: Here's how you can avail it

Prime Minister Narendra Modi on Thursday launched a programme to approve loan requests of up to Rs 1 crore for small- and medium-sized businesses within 59 minutes, as he tries to woo a large voting block ahead of a series of elections.

The Modi government also announced to spend Rs 6,000 crores in order to set up 20 hubs with around 100 tool rooms which will aid in upgrading the existing technologies of the MSME sector.

Only GST registered MSMEs will get 2 percent interest subsidy on fresh loans, while a website psbloansin59minutes.com will sanction loans up to Rs 1 crore within 59 minutes.

Through data analysis of GST returns, tax returns and bank account statements, the portal will assess the creditworthiness of the applicant.

For exporters receiving loans in the pre-shipment and post-shipment period, there is an increase in interest rebate from 3 percent to 5 percent.

Modi also announced measures to simplify rules, regulations and procedures for the MSMEs. Besides the filing of single common form for eight labour laws and a single approval for environmental clearance, the package included plans for the creation of special clusters for MSMEs in the pharma sector for which the government will bear 70 percent of the total cost.