Micro, Small and Medium Enterprise, or commonly known as MSME is nowadays contributing extensively in economic development in our country.
The government of India are equally supporting the MSMEs announcing different loan schemes frequently. And, to take advantage of it, MSME registration is extremely important. The registration is essential to avail the benefits announced by the government for MSMEs, especially for the loans.
Now, let’s just understand more about MSME loans and how to register for it.
What are MSME Loans?
MSME loans are offered by the financial institutions and some government banks as an unsecured loan to meet all the business requirements and expenditures. With some strict guidelines and eligibility criteria, these unsecured loans are provided to the small business owners. Basically, MSME loans are offered to the small enterprises with a purpose to support them financially, building infrastructure and for other areas to grow their organization.
Besides MSME loans, there are some other schemes for loans that different financial institutions provide to the enterprise owners. Have a look at them.
- Micro Unit Development and Refinance Agency (MUDRA Loan)
- Credit Guarantee Funds Trust for Micro and Small Enterprises (CGTMSE)
- Prime Minister’s Employment Generation Programme (PMEGP)
To take advantage of the benefits offered by the government for the MSME loans, registration and fulfilling the eligibility criteria is essential. Consult Avenue is a leading and best financial advisor in Delhi, NCR that you must get in touch with to get all your queries resolved related to MSME.
For MSMEs, the government has laid down some clarifications and certain criteria that you must know. Recently, due to coronavirus outbreak, the criteria have been changed. Let’s take a look now.
- Unit with up to ₹1 crore investment and ₹5 crore turnover will qualify as a micro-unit.
- Investment up to ₹10 crore and turnover up to ₹50 crore will qualify as a small unit.
- Investment up to ₹20 crore and turnover up to ₹100 crore will qualify as a medium enterprise.
So, before you apply for MSME loan, you must be aware of the criteria and what all is required to become eligible for it.
How to Register for MSME Loans?
To apply for MSME loan, first, you have to ensure that your enterprise is registered. Even if your enterprise isn’t registered, simply visit https://msme.gov.in/online-application and fill the application form to register your MSME. You can get MSME certificate within the time period of 2 to 5 working days, which is for both the sectors, manufacturing as well as service. If you have all the required documents and meet the eligibility criteria, then you can easily apply for the MSME loans.
Furthermore, let’s check what documents are required for MSME loan to proceed with the application quickly.
- Duly filled Application form
- Age Proof documents – Passport, PAN card, Voter ID Card
- Identity Proof documents – PAN Card, driving licence, Aadhar card
- Residence Proof documents – Electricity bills, ration bill, passport or lease agreement (if you are living at a rental place).
- Last twelve months bank statement copy
- Business registration proof
- Partnership deed copy
- Proprietor(s) PAN card copy
- Municipal tax document
- Sales tax documents
- Company PAN card copy
- Balance sheet and P&L copy of last two years
If you have all these documents, then you can easily apply for the MSME loans. Eligibility criteria are already mentioned above that what is required to be a Micro, Small or Medium enterprise. Once, you have gathered all the documents, and you just have to apply for the MSME loan. To apply for the MSME loan, below listed are the steps that you need to follow if you are willing to do it on your own.
How to apply for an MSME Loan Online?
To apply for MSME loan, follow the below-mentioned steps.
Step 1 – First of all, you have to visit Udyog Aadhar website, which is a national portal of Micro, Small and Medium Enterprises.
Step 2 – Then, scroll down and fill all the details as required like Aadhar number and name of the entrepreneur.
Step 3 – Once you have entered all the details, then click on the option, “Validate and Generate OTP”.
Step 4 – Now, you will receive OTP on your registered mobile number, or which is linked with your Aadhar card. Fill the OTP number, and click on the ‘validate’ option. A form will appear for you to fill.
Step 5 – Fill the form.
Step 6 – After that, click on the ‘Submit’ button. Then, enter all the data that has been asked. Click on the ‘OK’ button to confirm.
Step 7 – Again, you will receive an OTP on your mobile number linked to your Aadhar card. Fill the OTP number and then, click on the ‘Final Submit’ button to submit your application form.
Step 8 – Finally, you will see the registration number.
MSME loan schemes are provided to meet all the business requirements. For any professional help or financial consultancy from the experts, get in touch with the experienced and knowledgeable experts of Consult Avenue.