How to Apply for an MSME Loan?

If you are searching for ‘MSME apply online’ or ‘MSME loan scheme’, read ahead to know more. This article will give you all necessary information about MSME loans.

What is MSME Loan?

MSME stands for Micro, Small, and Medium Enterprises which require financial assistance from time to time in order to grow. There are various MSME loan schemes which provide unsecured loans to such businesses. 

Most of these MSME schemes are run by the Government of India, and are given through various banks and NBFCs to cover credit-related business expenses. It should be noted that MSME loans have clear eligibility requirements in place to reduce the lenders' risk ratio. 

These loans are described by the RBI and the Indian government as loans given to businesses for infrastructure, finance, and other purposes.

Documents Required for MSME Loan

The documentation requirement will vary based on the MSME scheme you opt for. Here is a list of the major documents required for MSME loan - 

• Application form
• Passport size photographs
• MSME Certificate
• Identity Proof
• Address Proof, both residential and of the business
• Age proof
• Income Proofs in the form of bank statements
• Business Plan or Project
• Trade Licence or any other proof of the business being registered

Who is Eligible for MSME Loan?

Before applying for any loan, checking the eligibility criteria is an important step. Someone who is eligible for MSME loan should be -

• Between the ages of 21 and 65
• An Indian citizen
• Sole proprietor or co-owner of a micro, small, or medium enterprise.

An enterprise needs to meet the specific MSME loan eligibility to be considered for a loan. The following table describes what is referred as a micro, small, or medium enterprise - 

Tips to Apply for MSME Loan Scheme

While applying for a loan is a fairly easy process, there are some steps that can help you to make the process even smoother. 

MSME Loan Application - DOs

1. Double check all the relevant documentation before submitting
2. Review your credit score beforehand
3. Be informed about the requirements of applying for an MSME loan scheme
4. Prepare a viable business plan, including detailed description of how you intend to use the funds

MSME Loan Application - DON’Ts

1. Never apply for MSME loans through a third party, always approach banks or block level officers
2. Don’t apply for multiple loan schemes at the same time
3. Avoid applying for an MSME loan if your business already has outstanding debts

MSME loans are boon to smaller enterprises which are also important for the country’s economy. As long as one meets the eligibility criteria, and documentation requirements, availing these loans are easy.

However, if you are looking for an additional loan or a short term instant loan, why not avail a personal loan? At Money View, one can avail an instant loan of upto Rs. 5 lakh with minimal documentation. The application process is hassle-free and the loan is credited to your account within 24 hours of approval.

Visit the Money View website or download the loan app to apply now.