Apply For MSME Loan : MSMES are the heart and soul of India’s economy. MSMEs are the second largest employer, second only to agriculture, contributing around 24.6 percent of the country’s service sector GDP. MSMEs contribution to our economy is significant. MSMEs can help people upgrade, take advantage of opportunities and even in today’s competitive business scenarios by providing credit in the form of loans.
MSME Loan Scheme Online
India is an agricultural country. But along with agriculture, small industries and businesses are equally important. Just as agriculture plays a part in the economy. Similarly, businesses also boost the economy of our country. How can we apply MSME Loan Online through this article today? We will get its complete information today.
Highlight Of Apply For MSME Loan
|Name of Article||How to Apply Online in MSME|
|Loan interest rate||Interest rate of 17 to 21 percent|
|Where to apply?||In a company registered on Udyyan Portal|
|How long can the loan be repaid?||Within 12 to 60 months|
Highlight Of Apply For MSME Loan
What Are MSMEs ‘ And What Are MSME Loans?
The Micro, Small and Medium Enterprises Development Act 2006 has been enacted. Accordingly, MSMEs are micro, small and medium enterprises involved in the production and processing of commodities. MSME classification is done on the basis of investment and turnover.
|Micro Enterprises||Less than 1 crore||up to 5 crores|
|Small Enterprises||Less than 10 crores||up to 50 crores|
|Medium Enterprises||Less than 50 crores||up to 250 crores|
What are MSMEs
MSME loans are those that can be availed by companies registered under MSME scheme in Udyyan Portal to improve their operations and meet their needs.
What Are The Advantages Of Opting For An MSME Loan?
There are many benefits of MSME Loan. The information of which is as follows.
- Loan providers understand your need for immediate credit and try to ensure quick and hassle-free processing and disbursement of loans under 50 lakhs.
- Most loan providers allow the option of applying online to reduce the hassle of excessive documentation. Log in to the provider’s website, enter the required details, upload the required documents and avail the loan based on your requirements.
- Avail attractive repayment terms of 12 to 60 months for convenient repayment.
- MSMEs can get business loans at an interest rate of 17 to 21 percent.
- You can use tools like business loan eligibility calculator to calculate your eligibility and also check required documents etc.
Many schemes have been introduced by the Government of India through various banks and NBFCs to help India’s indigenous industry and MSMEs. For example, the Pradhan Mantri Mudra Yojana scheme in which loans up to 10 lakhs are given. Apart from this, banks also provide currency loans. In which SBI e-Mudra Loan is very popular.
Eligibility Criteria To Apply For An SME / MSME Loan
Eligibility to apply for SME/MSME loan is as follows.
- The age of the person applying for the loan should be minimum 22 years and maximum 65 years.
- Private companies, private companies involved in trade, manufacturing or service sector can apply for SME loans.
- Applicant should have minimum 3 years experience in relevant profession and minimum 5 years experience in profession.
- Basic annual income of 2 lakhs and turnover of 10 lakhs per annum for at least two years in business.
- Business should be registered as MSME in Udyyan Portal and should have registration certificate of MSME.
How To Apply For An MSME Loan?
- Log on to your loan provider’s website and fill the application form by filling the required details.
- A designated representative of the loan provider will soon contact you with options that may best suit your needs.
- After your eligibility is determined, you need to submit documents for verification.
- The required documents can then be scanned and submitted online.
- If you want to take an offline loan, you can collect the copies and request the loan provider.
- Once all the relevant documents are collected, they are sent to the respective team for verification.
- After verification of documents and approval of your loan, the loan provider creates a loan agreement.
- Finally, after signing the contract, the applicant’s account is credited within 48 hours.
Documents Require For MSME Loan
- PAN card of the applicant
- Copy of Aadhaar Card
- Proof of business and address of the applicant
- Form 16 plus bank and income statement
- Income tax returns of the company for the last two years and audited financial statement of the company showing the profit for at least two years.
1. What is the full name of MSME?
● Full name of MSME is Micro, Small and Medium Enterprises.
2. Where to apply for MSME?
● Applying on company official website registered under MSME scheme in Udyyan Portal .
3. What is the interest rate of loan received by MSME and in what time can it be repaid?
● Loans availed by MSMEs have an interest rate of 17 to 21 percent and can be repaid within 12 to 60 months.
4. What documents are required for MSME loans?
● Applicant’s PAN card, Aadhaar card, business and address proof of the applicant, form 16 plus bank and income statement and income tax returns of the company for the last two years are required for the loan.