Business

Follow these Easy Steps to Get A MSME Loan

October 22, 2020
G5im Author

All micro, small and medium enterprises require loans for the growth of their business. The lender provides the loan to those businessmen who meet the eligibility criteria. They are unsecured loans. There are a large numbers of firms of sme/msme which needs loan for the improvement

When you apply for an MSME Loan, you continue to remain in control of your business. You can use the loans to expand your operations, to open new locations, and develop your business.

Micro Enterprises: Those enterprises that have an investment amount of Rs. 1 crore and a turnover amount of Rs. 10 crores come under micro-enterprises.

Small Enterprises: Those enterprises that have an investment amount of Rs. 10 crores and a turnover amount of less than Rs. 50 crore come under small enterprises.

Medium Enterprises: Those enterprises that have an investment of Rs. 50 crore and a turnover amount of Rs. 250 crore come under medium enterprises.

Easy Steps to Get Loans

  1. Registration: First register your Micro, Small or Medium Enterprise on the udyogaadhaar.gov.in website. You have to provide your Aadhaar number and your name (if you are the entrepreneur). Click to validate it. It will generate OTP on your mobile phone. Ensure that you give the mobile phone number that is linked to your Aadhaar number.

  2. Fill the application form: An application form will appear. Fill up the application form by providing the required details. Click “Submit”. You will get a question, asking if the data entered is correct. You will be asked to confirm it. Click “OK”.

  3. Submission: Again, you will receive an OTP on your mobile phone. Fill the OTP again. Click on “Final Submit”. Your application form is now submitted. It is an online submission. There is no waiting period to send and receive documents.

  4. Documents Required:

Have the following documents ready to get the loan.

  • Application Form: You should have your application form.
  • Age Proof: To prove your age, you should have documents like a passport, Voters ID, and PAN card copy.
  • Identity Proof: You need your driving license, passport, Voter’s ID, or PAN card.
  • Residential Proof: For residential proof, you should produce your trade license, electricity bill or telephone bill, ration card, passport, lease agreement, and/or sales tax certificate.
  • Enterprise Related Document: Documents related to your enterprise or business are needed to get the loan. When every document is ready, your loan gets approved easily. It will speed up your production, marketing, and profits.

    Enterprise Registration: You have to prove that your enterprise is registered.

Keep the following documents complete and ready, to get your loan approved on the same day. You do not have to worry about delays.

  • Copy of Partnership Deed
  • Copy of Company’s PAN card
  • Copy of Proprietor’s PAN card
  • Financial Documents: Documents regarding the financial aspects of your business are required.
  • Bank Statement to show proof of banking transactions within one year
  • Sales Tax documents
  • Profit and Loss and Balance Sheet copy of your enterprise for the last two years of operation
  • Municipal tax document
  • Additional Information

Many people prefer online loans to get financial help to do business. There is no need for collateral. There is no need to provide asset security to avail of the loan. An upfront processing fee is charged, which depends on the loan amount. There are no hidden costs, as the application form is transparent, and only a few details have to be filled in. The interest rates are nominal. There is no human intervention, and hence the rates are not very high. With an online business loan calculator, you can choose the best interest rate, suitable for your business. The duration of the loan can be for a month or 36 months. Make the best use of your loan and enjoy a profitable business.