MSME Loan: Here’s How Small Industry Holder Can Apply loans from SBI, ICICI Bank and Others; Steps to Follow

Amid the Covid-19 crisis and nationwide lockdown, Finance Minister Nirmala Sitharaman has announced various measures for Micro, Small and Medium Enterprises (MSME) including collateral-free loans, additional debt and equity infusion. Moreover, the government has given special preferences and initiated different new schemes for MSMEs amid this pandemic. However, MSME’s are the most brutally affected sector amid this corona pandemic.

Keeping this scenario in mind, the government has come up with the different initiatives for Micro, small and medium industries and initiated MSME loan to all needy entrepreneurs. If you are a holder of small business and worried for money, then you can easily apply for this MSME loan and credited money from bank instantly.

What is MSME loan?

Micro, Small and Medium Enterprises (MSME) loans are generally offered to startups and small business entrepreneurs. The repayment tenure varies from lender to lender for the MSME loans. Based on the loan amount, the applicant’s profile and business history the interest rates are offered.

However, MSME loans can be availed by the applicant if they meet certain eligibility criteria.

Banks and NBFCs offer MSME loans which are also known as unsecured loans. The government of India and the Reserve Bank of India (RBI) defines MSME loans as the loans for business enterprises need support in terms of finance, infrastructure and other areas.

How to Apply for MSME Loan?

• First, you need to visit the official website of udyogaadhaar.gov.in  which is a national portal for registration of Micro, Small & Medium Enterprises.

• After that, you need to fill information like Aadhaar number, Name of the Entrepreneur and once you enter these details, click on validate and generate OTP.

• You will receive an OTP on your mobile number which is linked to your Aadhaar card. Fill the OTP on the window and click on "Validate" and an application form will appear.

• After filling every detail click on "Submit".

• After you click the "Submit" button, the page will ask if you have entered all the data correctly. Click "OK" to confirm.

• Now, you will again receive an OTP on your mobile number which is linked to your Aadhaar card. Fill the OTP and the code is given below on the window and click on " Final Submit" to submit the application form.

• Important Documents for MSME loan

• - You need to give Identity Proof:

• Passport, driving licence, PAN card, Voter’s identity card.

• - You need to provide your residence Proof:

• Passport, lease agreement, trade license, telephone and electricity bills, ration card and tax certificate.

• - You need to show Age Proof:

• Passport, Voter’s identity card, Photo PAN card.

Banks which offer MSME loans
State Bank of India

HDFC Bank

Allahabad Bank

Central Bank of India

ICICI Bank

Bajaj Finserv

Oriental Bank of Commerce

Union Bank of India

Indian Bank

Important Financial Documents for MSME Loan

- Bank statement of the last 12 months

- Business registration proof

- Proprietor(s) PAN Card Copy

- Partnership deed copy

- Company PAN card copy

- P&L and balance sheet copy of last 2 years

- Sales tax documents

- Municipal tax document