MSME Loan: Apply Online, Meaning, Definition, Documents Req

Here has explained detailed information on MSME loan, MSME scheme, the document required for msme loan, and frequently asked questions on MSME bank loan.

MSME Loan meaning
New Definition of MSME
Highlights of the new MSME definition
MSME Loans from Banks and NBFC
MSME Loan Schemes
Documents Required for MSME Loan
How to Apply for MSME Loan from Bank
Frequently Asked Question and Answer on MSMEs

MSME Loan meaning

The MSME loan is the central government financial help for the small business owner and startup business. So that they can upgrade their business, and be financially able to process their business. These loans are declared by the Government of India and the RBI by various schemes. These loans are given by banks and NBFCs, to the applicant if he/she fulfills all the eligibility criteria.

New Definition of MSME

The new definition of the MSME sector is that there will be no difference between manufacturing and service enterprises. Micro small and medium enterprise MSMEs will be defined both on the basis of investments and the turnover of the company.

MSME Investment and Annual Turnover
Enterprise Type Micro / Very Small Enterprise Small Enterprise Medium Enterprise
Both manufacturing and service sector Investments below Rs 1 crore Turnover below Rs 5 crores Investments below Rs 10 crores Turnover up to Rs 50 crores Investments below Rs 50 crores Turnover up to Rs 250 crores
Introduced by the Government of India - Self-reliant India Campaign Scheme 2020

Highlights of the new MSME definition

  1. Moratorium period of 12 months
  2. Manufacturing and service sector will now be considered equal
  3. 3 lakh crores MSME Loan
  4. Loan repayment period of 48 months
  5. 100% Credit Guarantee
  6. Loans to MSMEs without security/ security
  7. Nearly 4.5 million enterprises will benefit

MSME Loans from Banks and NBFC

There are many government schemes for Micro, Small Medium Enterprises loans, and there are several private sector banks that offer the same. Below are some of the major banks and NBFCs that offer MSME bank loans for small business owners:

MSME Loan Schemes

According to the Micro, Small and Medium Enterprises (MSME) Development Act 2006, the central government declares various schemes and norms for the service enterprise and the manufacturing enterprise. Some of the schemes are Mudra loan, CGTMSE, PMEGP, etc. These schemes are meant to support small scale medium enterprises and startups through financial support and funds for their businesses.

Mudra loan - (Micro Units Development and Refinance Agency Bank)

Mudra Loans are the collateral loans to support small business trading companies. These loans are given at low-interest rates to micro and very small enterprises, which then provide credit to MSMEs.

CGTMSE (Credit Guarantee Funds for Micro and Small Enterprises)

The Ministry of MSME, Government of India, and the Small Industries Development Bank of India (SIDBI) jointly launched a trust which is known as Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE). This scheme’s objective is to provide credits to financial institutions that provide loans to SMEs, SSI, and MSMEs.

PMEGP (Prime Minister Employment Generation Program)

This scheme provides financial assistance to set up new enterprises under PMEGP. Under this scheme, the applicant can get up to Rs 25 lakhs loan and subsidy ranging from 15-35% of the project cost from the KVIC - Khadi and Village Industries Commission government. For startups, these PMEGP schemes help in providing financial assistance required to set up a new project.

Documents Required for MSME Loan

Important documents required for MSME loan are as follows:

  1. Perfectly filled MSME loan application form of the bank
  2. Self Identity proof: Aadhaar Card, Passport, Driving license, PAN card, voter ID card
  3. Residence proof: Aadhaar Card, Passport, lease agreement, trade license, telephone, and electricity bill, ration card and sales tax certificate
  4. Age certificate: Aadhaar Card, Passport, Voter ID card, Pan card
  5. Detailed business project report for a bank loan
  6. Udyog Aadhaar/ Udyam/ MSME registration certificate of your business

Avail Bank Loan Project Report in PDF/ Word/ Excel format click here to download

How to Apply Online for MSME Loan from Bank

In accordance with the provision of Micro, Small & Medium Enterprises MSME, we provide guidance and support to startups and small scale in order to get loans from financial institutes.

Apply for an MSME loan Now. Quick, Hassle Free Simple Process.

Step 1: Visit the MSME/Udyog Aadhaar/Udyam registration portal or click this link to apply for MSME loan

Step 2: Select the Package of your choice, and fill the details on the registration form

Step 3: Next make 100% payment and get detailed 25+ project report and 1000+ legal formats which are useful for getting a loan approval

Step 4: We will send 25 types of different project reports, you can choose the project you like & apply for the loan, and dedicated email support for any queries

Step 5: With the help of project reports & detailed guidance notes, and with our support, you can get a loan from the bank.

Apply Online for Project Report for Bank Loan for New Business

We are a team of MSME registration experts helping startups, entrepreneurs and existing businesses. And providing services related to MSME registrations, MSME loan process, and getting detailed bank loan project reports at low price.

Indian Government initializing various schemes for the betterment of the small scale business sector. Avail these benefits and boost your business.

.We just focus to provide one-click access to individuals and businesses for all their legal and professional needs. Feel free to contact us just by filling the application form, and one the executive will reach you through MSME helpline number.

Frequently Asked Question and Answer on MSME Loan

Is Udyam registration mandatory for getting an MSME loan from Bank?

Yes, it is mandatory. Small scale business owners should be registered under the Ministry of MSME, Udyam registration certificate holder, to achieve MSME loan eligibility.

Is credit score important for MSME in getting an MSME loan?

Yes, it is important to have a good credit score for getting an MSME loan.

Is new business eligible for MSME loan?

Yes, new businesses are eligible for MSME loans. MSME loan's interest rates offered are based on various factors, terms and conditions. And varies from bank to bank.

Can I apply for an MSME loan online?

Yes, you can apply for an MSME loan online, few of the banks have this credibility.

Which bank is best for the MSME loan?

Based on the health of your business, revenues, and the annual turnover, there are many financial institutes that provide MSME loans.

  1. State Bank of India
  2. HDFC Bank
  3. Allahabad Bank
  4. Central Bank of India
  5. ICICI Bank
  6. Bajaj Finserv
  7. Oriental Bank of Commerce
  8. Union Bank of India
  9. Indian Bank

How can I get a project report for bank loans for a new business?

You can easily get project report for a bank loan online here, click the link:

Can I get the project report in PDF and Word format for the MSME bank loan?

Yes, we provide 1000+ project reports in PDF, Word, Google Docs format.

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