How to Apply for MSME Loans and Make the Most of the Union Budget 2025 Credit Boost?

The Union Budget 2025 has brought forward several transformative measures to boost the growth and access to credit for Micro, Small, and Medium Enterprises (MSMEs) in India.

One major initiative is the doubling of the credit guarantee limit for MSMEs from ₹5 crore to ₹10 crore. Additionally, the Finance Minister raised the turnover and investment thresholds for MSME classification by 2 and 2.5 times, expanding the reach of these benefits to a larger number of businesses.

With increased investment and turnover limits, along with enhanced credit guarantees, the budget aims to empower MSMEs, especially startups and first-time entrepreneurs, and support their expansion in the global market.

To make the most of these opportunities, it’s important to understand how to apply for MSME loans effectively and take full advantage of the enhanced credit facilities. Here’s how you can apply.

Easy Loan Access for MSMEs: Key Portals

• 59-minute loan portal Online PSB Loans Ltd

Launched by the government, this portal allows MSMEs to receive in-principle approval for loans within just 59 minutes. It is supported by a consortium of public sector banks and is powered by AI and machine learning technologies. The portal is managed by Online PSB Loans Ltd, which is backed by SIDBI and other public sector banks.

• Banks and Financial Institutions

Several banks and financial institutions offer MSME loans to support the growth and development of small businesses. Some of the prominent lenders include: the State Bank of India (SBI), HDFC Bank, ICICI Bank, and Axis Bank. One can apply for MSME loans through Net Banking.

Additionally, a variety of other financial entities such as Non-Banking Financial Companies (NBFCs), Small Finance Banks (SFBs), and Regional Rural Banks (RRBs) also play a significant role in providing financing solutions for MSMEs. These institutions offer tailored loan products and services designed to address the specific needs of small and medium-sized enterprises.

Moreover, Microfinance Institutions (MFIs) offer specialised loans to help the smallest businesses and entrepreneurs access capital to kick-start or expand their operations.

Essential Documents Needed for MSME Loan Application

To apply for an MSME loan through the platform, you will need to have the following documents ready:

1. PAN Card: Required for verification.
2. Income Tax Return (ITR): To confirm your tax filing history.
3. GST Details: Information about your Goods and Services Tax registration.
4. Bank Statement: To verify your financial health.
5. Key Person Details: Information about the key individuals in your business.
6. Business Registration Proof: To confirm your MSME registration.

Ensure these documents are available and uploaded as per the platform’s instructions to streamline the loan application process.

How to Apply for an MSME Loan: Simple Steps to Follow

1. First, visitwww.psbloansin59minutes.com and create an account or log in.
2. Once logged in, locate and click on the ‘Loan’ option on the right side of the page.
3. Select ‘Create New’ to start a fresh loan application, then choose the MSME loan option and click ‘Apply Now.’
4. Enter your PAN number and proceed by clicking ‘Next.’
5. Confirm your eligibility by answering questions about your Income Tax return filings, defaults, and whether your business is registered as an MSME.
6. Give your consent and proceed by clicking ‘Proceed.’
7. Upload the necessary documents, including your GST details, Income Tax returns, bank statements, and information about key individuals in your business.
8. Click ‘One Form’ to fill out the loan requirements and business details, then click ‘Proceed.’
9. After submitting all the required information, click on ‘Apply for Loan.’
10. If your loan request matches any existing products, a pop-up window will appear asking you to verify your email address.
11. You’ll then see a list of loan products that match your application.
12. Review the available options, choose your preferred lender, and click ‘Proceed.’
13. Select the lender branch where you’d like to send your loan application.
14. Based on your details, the lender may issue an in-principle approval letter for your loan.
15. If no loan products match your request, you can manually submit your application by selecting the lender, state, city, and branch.

Conclusion

The Union Budget 2025 has introduced key measures to boost MSME growth and credit access, with doubled credit guarantees and higher investment thresholds. By understanding how to apply for MSME loans and leveraging platforms like the 59-minute loan portal, small businesses, startups, and entrepreneurs can take full advantage of these opportunities. With the right documents and a streamlined application process, securing funding for your business growth has never been easier.

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