MSMEs or Micro, Small and Medium enterprises are the cornerstones – the evidence of growth – for any country’s economy. Thankfully, after the start of Start-up India initiative, many such enterprises have arrived and are doing good business.
These business units are comprised of some of the most innovative and hardworking individuals I have ever seen. It’s therefore, so disheartening to see they struggle to make ends meet. That struggle has only increased due the COVID -19 – which has made many pristine and successful MSMEs fall to their knees. Thus, there is an immense need to fund these businesses through MSME loans. Thankfully, it’s not difficult to get MSME loan anymore.
What are MSME loans?
MSME loans are specific type of loans doesn’t required security, and are given to specific type of businesses or MSMEs. Run under a government scheme, the MSME loan is provided to a business entity under specific criteria to give it support in finance, infrastructure and other regions.
Steps to apply for MSME loan
The steps to acquire loan under the MSME format are as follows:
- Go the Udyog Aadhar portal.
- Enter your name and your Aadhar number.
- You will then receive an OTP to the contact number linked to your Aadhar card.
- Validate the information you’ve entered in step 2 using the OTP.
- You’ll now see a form in which you have to enter all the specifics about your business entity.
- Click submit button.
- You will now land on a page where you’ll have to confirm that all the details you’ve entered are correct.
- You’ll receive a second OTP and will have to validate your submission using that.
- Click on Final Submit
- Now, you will get an Udyog Aadhar Registration Number. This number has made you recognized as an MSME.
Documents required for MSME loan
Following are the documents required to acquire MSME loan:
- Application form of the same
- ID proof
- Residence Proof
- Age Proof
- Financial statement documents uch as:
- Bank statements of the last 12 months
- Business registration proof
- PAN card copy
- Copy of partnership deed
- Certificate of incorporation
- Municipal tax document
- Sales tax document
Banks that provide good rates on MSME loan
MSME loans are regulated by the Reserve Bank of India. Thus, banks and NBFCs only have a certain degree of control over them. But, if you are to get these loans easily, you need the right banks who doesn’t bombard you with dead ends and defaults Thus, following are the banks you should look into”
- HDFC Bank
- ICICI bank
- Bajaj Finserv
- State Bank of India
- Allahabad bank
- Union Bank of India
- Oriental Bank of Commerce
- Indian Bank
Government has recently announced a big stimulus package out of which INR 3 Lakh Crore are reserved for MSME loans. Considering the amount of MSMEs that are struggling in India, there is a chance that this amount will finish quote soon. Thus, if you are a struggling MSME, get your MSME loans as soon as possible.