You need to keep in mind the following aspects before applying for a MSME loan:
1. To ensure that the loan amount is sanctioned quickly and without any hassles, you need to provide the necessary details asked for by the lenders.
If filling online, ensure that you upload all the required documents with self- attestation and submit after rechecking every detail.Information normally asked are KYC details, GST number, ITRs and bank statements.
2. MSME Loan Interest Rate –
The interest rate charged on MSME loans Is nominal and depends on the category your requirement belongs to:
3. Eligibility criteria for MSME Loan:
• You should be 18 years or older
• You should have passed 8th standard
• You can apply for MSME Loan if you are in any Self-help Group and have not availed any benefits from the government.
Also trusts which are doing charity and fall under different charitable societies and trusts, institutions under Societies Registration Act 1860, Production Co-operative Societies are all eligible for MSME Loan.
You would need a guarantor for sanctioning of MSME Loan.
You would need to register before applying for the MSME loan ;online.
In conclusion, MSME loans are attractive borrowing options to boost your business, as they provide key benefits such as:
• Immediate processing and disbursal of loan.
• Investing in plant and machinery.
• Acquiring land or a factory for further development.
• Meeting working capital requirements and expenses.
• Procurement of raw materials required.
• Additional monitory support for expansion of business.
There are different Government schemes that facilitate MSME loans. Depending on what the scheme offers are, you can apply for an MSME loan that suits your business requirements.