How to Apply for MSME Loan to Start an Own Business, Step by Step

How to Apply for MSME Loan to Start an Own Business, Step by Step: The loan from the Ministry of Small and Medium Enterprise Loan is generally given for startup and small business. The repayment period of the MSME loan varies from lender to lender. Interest rates are offered based on the profile of the applicant for lending and how the business has been in the past, how the repayment has been.

Banks and NBFCs have certain eligibility criteria for MSME loans. By the way, the MSME loan is also called Unsecured Loan. Recently, the government has changed the definition of MSME. If you also want to apply for an MSME loan then follow the below step.

Documents Required for MSME Loan

• Application Form
• Identity Proof will be required like Passport, Voter ID Card, PAN Card Driving Licence, etc.
• Residence Proof like Passport, Lease Agreement, Trade Licence, Telephone Bill, Electricity Bill, Ration Card, and Sales Tax Certificate.
• Age Proof like Passport, Voter ID Card, PAN Card

Financial Document Required Loan

• Last 12 months bank statement
• Business registration certificate
• Proprietor (s) pan card copy
• Company pan card copy
• Balance sheet copy of last 2 years profit and loss
• Sale tax document
• City tax document

Bank Who Offers MSME Loan

• State Bank of India
• HDFC bank
• Allahabad Bank
• Central Bank of India
• ICICI Bank
• Bajaj Finserv
• Oriental Bank of Commerce
• Union Bank of India
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Follow these Step to Apply For MSME Loan

• Visit the Udyogaadhaar.gov.in website. It is the national portal for registration of MSME.
• Enter the Aadhaar number, entrepreneur’s name and details, then click Generate OTP.
• An OTP will go to your mobile number, it is linked to your Aadhar card. Fill your OTP and click on “Validate”, after which you will see an application form.
• Enter all the details required.
• After filling all the required details in the application form, click “Submit”.
• After clicking the “Submit” button, the page will ask if you entered all the data correctly. Click “OK” to confirm.
• Now, you will again get an OTP on your mobile number which is linked to your Aadhaar card.
• Fill out the OTP and click “Final Submit” to submit the application form.
• Now you will see the registration number, note it for further work.

Explain that in its meeting on 1 June, the Union Cabinet has approved the change in the definition of Micro, Small and Medium Enterprises (MSMEs). The turnover limit for medium enterprises has been increased to Rs 250 crore.

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