MSME loan is a type of loan that financial institutions in India offer to micro, small, and medium enterprises, registered with the MSME Ministry. It allows borrowers to cater to their small business day-to-day requirements, such as buying new stock, managing inventory, purchasing equipment, etc. The best thing about an MSME loan is that it is collateral-free, and you will not be charged a penalty if you prepay the loan. If you want an MSME loan, apply online and get the sanctioned amount within hours.
Here are the requirements to apply for an MSME loan:
- You must be a self-employed professional - Allopathic doctor, company secretary, chartered accountant, and practicing architect, or;
- You must be a self-employed non-professional - Traders, retailers, manufacturers, proprietor, service providers, etc, or;
- You must be an entity - partnership, sole proprietorship, or private limited company.
- You must be at least 21 years old at the time of applying for an MSME loan or 65 years during the loan maturity.
- You must be in the current business for at least three years.
After meeting the eligibility criteria to avail of an MSME loan, it is imperative to submit all the relevant documents required by the lender. Although the documents required vary across lenders, here are the ones that are common across all platforms:
- KYD Documents: Aadhaar Card, PAN Card, Driving License, other documents approved by the government.
- Address proof: Utility bill, Passport, Rent Agreement, etc.
- Financial documents: GST Returns, copy of ITR, Bank Account Statement, and Profit & Loss Statement.
- Business Ownership: Business registration documents.
Speak to your lender or visit their website to avail easy MSME loans today.
