MSMEs can avail 100%* collateral free guarantee loans. Yes, that’s true. When our Union Cabinet held a meeting on 1st June, they had a long discussion. In this meeting, they have approved changes that define micro, small and medium Enterprises (MSMEs) in India.
To make the loan approval process easy and promote businesses to take a loan, the Union cabinet has decided to raise the turnover limit for medium enterprises to Rs 250 crore. Through this decision, the government aims to broaden the scope of MSMEs in India.
In the meeting, Union Minister Prakash Javadekar mentioned that there’s a new definition for MSMEs.
- ● Enterprises in India who have a Rs 1 crore investment and Rs 5 crore turnover can now qualify as micro enterprises and avail this MSME loan in India.
- ● Any Business in India that has an investment of less than Rs 10 crore and their turnover is less than Rs. 50 crore will now be classified as small enterprises in India.
- ● For all of you who wish to know, the definition for a medium enterprise has been revised. Yes, now if a business has an investment of Rs 50 crore and a turnover of Rs 250 crore, they will be considered as a medium enterprise.
Documents required for an MSME loan:
Here are the documents needed for an MSME loan:
- ● You must complete and submit a duly filled loan application form.
- ● Identity Proof: You will need to furnish a few of these documents i.e. either Passport, Driving license, PAN card, Voter’s identity card etc.
- ● Residence Proof: You will need to furnish a few of these documents i.e. either Passport, lease agreement, trade license, ration card and sales tax certificate, telephone and electricity bills, etc.
- ● Age Proof: You will need to furnish a few of these documents i.e. either Passport, Voter’s identity card, PAN card, etc.
- ● Bank statement that spans for last 12 months.
- ● Business registration proof is mandatory.
- ● Proprietor(s) PAN Card Copy is required for submission.
- ● Partnership deed & Company PAN card copies are required.
- ● P&L and balance sheet copy of the last 2 financial years.
- ● Sales tax & Municipal tax documents too must be submitted.
Banks offering MSME loans in India:
To make matters easy for you, here’s a list of Banks in India that will offer MSME loans:
- ● HDFC Bank
- ● ICICI Bank
- ● Indian Bank
- ● State Bank of India
- ● Allahabad Bank
- ● Central Bank of India
- ● Bajaj Finserv
- ● Oriental Bank of Commerce
- ● Union Bank of India
If you’re looking for the best deals on MSME loans in India, visit our website and Apply for the best MSME Loan here.