59 Minute Loan Yojana: Eligibility Criteria, Application Process, Benefits

59 Minute Loan Yojana: Access to timely and effective financial solutions is essential for businesses in today’s fast-paced world, particularly Micro, Small, and Medium-Sized Enterprises (MSMEs). This same need is met by the 59 Minute Loan Yojana (Scheme) in India, which provides qualifying borrowers with accelerated loan approvals. This essay explores the features, eligibility requirements, application process, and advantages this scheme provides to MSMEs, delving into its complexities.

What is 59 Minute Loan Yojana

The 59 Minute Loan Yojana is not a single government scheme, but rather a collaborative effort between Public Sector Banks (PSBs), private banks, and Non-Banking Financial Companies (NBFCs) facilitated by a government portal – PSB Loans in 59 Minutes [1]. Launched in 2018, this initiative aims to streamline the loan application process for MSMEs, enabling them to secure loans of up to ₹5 crore (approximately $72,600 USD) within a promised timeframe of 59 minutes.

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Eligibility for the 59 Minute Loan Scheme

While the 59-minute approval sounds enticing, there are eligibility criteria that businesses must meet to qualify for this scheme. These criteria typically include:

  • Business Type: The scheme primarily targets existing MSMEs engaged in various sectors like manufacturing, services, and trading.
  • Turnover: The specific turnover limit may vary depending on the participating bank or NBFC, but it generally falls within the range of ₹1 lakh to ₹50 crore (approximately $1,450 USD to $7.26 million USD).
  • Financial Health: Businesses must demonstrate a good financial track record with minimal outstanding debts and a healthy credit score.
  • Documentation: Proper documentation, including business registration documents, financial statements, and Income Tax Returns (ITRs), is mandatory.

It’s important to note that these are general guidelines, and specific eligibility requirements may differ between participating lenders.

Simplified Application Process For 59 Minute Loan Yojana

The 59 Minute Loan Yojana emphasizes a swift and paperless application process. Here’s a breakdown of the typical steps involved:

  1. Online Application: Borrowers can visit the PSB Loans in 59 Minutes portal or the website of a participating bank/NBFC. The online application form captures essential business details and loan requirements.
  2. Document Upload: Necessary documents, such as mentioned earlier, are uploaded electronically through the chosen platform.
  3. Credit Assessment: An automated credit assessment system analyzes the submitted information and generates an initial loan eligibility report.
  4. Sanctioning Decision: Based on the credit assessment and internal verification, a loan sanctioning decision is conveyed within the promised timeframe.
  5. Disbursement: Upon successful completion of the process, the loan amount is electronically transferred to the borrower’s account.

Benefits for MSMEs

The 59 Minute Loan Yojana presents a bouquet of advantages for MSMEs:

  • Faster Access to Funds: Quick loan approvals are critical for businesses facing immediate financial needs like inventory purchase, working capital requirements, or expansion plans.
  • Reduced Paperwork: The online application process minimizes paperwork and streamlines the loan application journey.
  • Improved Cash Flow: Timely access to funds improves cash flow management and helps businesses meet their operational expenses.
  • Enhanced Competitiveness: By facilitating quicker funding, the scheme empowers MSMEs to seize time-sensitive business opportunities.
  • Transparency: The online platform promotes transparency by providing real-time application status updates to borrowers.
  • Apply Mode: Online Process
  • Rate of interest: Starting from 8.50% per annum

Limitations and Considerations

While the 59 Minute Loan Yojana holds immense potential, there are limitations to consider:

  • Loan Amount: The maximum loan amount offered under the scheme might not be sufficient for large-scale business expansion projects.
  • Eligibility Restrictions: Not all MSMEs may meet the eligibility criteria set forth by participating lenders.
  • Creditworthiness Dependence: The emphasis on credit score could disadvantage businesses with limited credit history.
  • Technical Challenges: Internet connectivity issues could pose a hurdle for businesses in remote locations.
  • Period: 1 to 5 Years

Exploring Alternatives

For those who don’t qualify for the 59 Minute Loan Yojana, alternative financing options exist:

  • Mudra Loans: This government scheme offers microloans to small businesses engaged in non-agricultural activities.
  • Government Subsidy Schemes: Various government initiatives provide financial assistance to MSMEs in specific sectors.
  • Venture Capital/Angel Investment: For high-growth potential businesses, seeking venture capital or angel investment could be an option.


The Loan in 59 Minutes Yojana is a big step in the direction of helping MSMEs in India become more financially inclusive. With its emphasis on quickness and convenience in obtaining loans, the program enables companies to get over financial obstacles and support the expansion of the national economy. Despite these drawbacks, ongoing system development and investigation of other funding sources.


Where can I apply for the loan?

You can visit the PSB Loans in 59 Minutes portal or the website of a participating bank/NBFC. For Loan Application.

What types of businesses are eligible for the scheme?

The scheme primarily targets existing MSMEs engaged in various sectors like manufacturing, services, and trading. However, specific eligibility criteria may vary depending on the participating lender.

How long does the entire process take?

According to the plan, loans will be approved in 59 minutes. Still, further time might be needed for the final check and money distribution.

What is the interest rate in the 59 minutes scheme?

Low interest rates Starting from 8.50% per annum.

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