India has multiple MSMEs. These MSMEs are present in both the goods and services sector. Furthermore, the MSMEs play an essential role in running the Indian economy by helping in exports. However, businesses at MSME from time to time need funding to expand and operate their business. In this article, you will understand the complete process to apply for MSME Loan for new business.
As a result, the Indian Government provides several beneficial schemes to MSMEs. One such scheme that you can avail of after having MSME Registration or Udyam Registration is MSME Business Loan. It is also known as MSME Loan. This guide is also helpful for businesses already having MSME Registration or Udyam Registration.
What is an MSME Loan?
MSME Loan is simply a credit facility available to businesses having MSME Registration or Udyam Registration.
In other words, MSME Loan is a kind of business loan that you can use for your business. However, it is different from other business loans.
MSME Loans have several unique features including:
- MSME Loans are available from banking as well as non-banking institutions.
- These loans provide taxation relief.
- You can apply for an MSME business loan through online mode.
- Small MSMEs can check their CIBIL Score and other loan-related information online.
- In special scenarios, MSMEs can avail of a business loan without collateral.
- MSME Loans have flexibility or repayment tenure.
Why is MSME Loan for new business important?
MSME loan for new business is important for several reasons. For example,
- It can help you build credibility as credit rating agencies will highlight your growth.
- MSME Loan for new business in some cases is collateral-free or unsecured. In other words, your business assets are safe in case of loan default. For example, there are several MSME loan for Construction business and other businesses that are collateral-free.
- New businesses can avail of MSME loans or Business loans as small as Rs. Fifty Thousand and as large as Rs. Two Crore.
- There are Multiple Ways to Apply for MSME Loan.
What is MSME Registration or Udyam Registration?
MSME Registration or Udyam Registration is mandatory registration that you need to avail of MSME Loan or any other benefit. The Government and the banks offer special offers to businesses having MSME Registration.
The MSME Registration and Udyam Registration are the names for the same scheme. The Ministry of Micro, Small, and Medium Enterprises regulates MSME registration or Udyam Registration.
In simple words, MSME Registration or Udyam Registration is the government scheme for businesses in India. The scheme provides several benefits that help you as a msme to run a safe and successful business.
The classification of MSME is as follows:
- Micro MSME Enterprises: Business whose investment is < INR 1 crore and annual turnover is < INR 5 crores.
- Small MSME Enterprises: Businesses whose investment is < INR 10 crore and annual turnover is < INR 50 crores.
- Medium MSME Enterprises: Business whose investment < INR 20 crore and annual turnover is < INR 200 crores.
Hence, multiple businesses fall under MSME Category and must have Udyam Registration.
Document Required for MSME Registration
To register under MSME, you need to upload the following documents on our web portal:
- Aadhar Card
- PAN Card
- Bank Account Details
- Type of business entity
- Previous Udyam Registration Details if any
- Number of persons employed in the business
- Business Type or Company Formation Details
- Investment in Machinery or Equipment
How to apply for MSME Loan for new Business?
To apply for an MSME Loan for a new business is very simple. You need to follow the steps that are mentioned below.
- Get MSME Registration or Udyam Registration
- Prepare a Business Plan and Project Report
- Consult our business advisors for your eligibility criteria at – 8881-069-069 or Write to us at [email protected]
- Our experts will assist you in document requirements and preparation.
- Get the loan amount and other relevant documentation delivered to you online without visiting any physical bank branch.
Benefits of MSME Registration for New Business
- The Document Requirement of MSME Loan for New Business is minimal.
- Our experts can assist you in receiving a business loan in a short duration.
- No need to visit any physical branch and stand in long queues.
- You can apply and get subsidies on Government fees of Trademark Registration and Patent Registration after MSME Registration and MSME Loan.
- The Government also provides reimbursement on the charges you pay for achieving ISO Certification. Thus, you can use an MSME Loan for New Business and achieve ISO Certification in India.
- You can get collateral-free loans at minimum interest rates.
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