Low interest MSME Loans
MSME loans are business loans offered to SMEs or to micro, small and medium-sized enterprises or to SMEs or small and medium-sized enterprises in the form of SME loans. These loans are offered for the advancement of business and other activities such as the purchase of machinery and raw materials, to meet the need for working capital and to invest in fixed assets. Banks and financial institutions are usually like NBFCs offering MSME business loans. However, the interest rates and the loan amount vary between banks and NBFCs. These loans are generally offered to small business owners, entrepreneurs, and startups. The enterprises eligible for this scheme are sole proprietorships, partnership companies, manufacturing or service-based micro-enterprises, and enterprises excluding retail traders, educational establishments, training establishments, agriculture, and self-help groups.
Documents required for MSME loan
- Application Form: MSME Loan application form duly filled and signed by all the applicant(s). Completely filled personal loan application with photograph
- Photographs: passport size photographs of all the applicant(s)
Identity Proof: Identity proof of all the applicant(s) applying for the MSME Loan. This point of MSME Loans documentation can include:
- Pan Card
- Aadhar Card
- Voters Id Card
- Driving License
Residence Address Proof: the residential address proof would be for all the applicant(s) applying for the MSME Loan. The acceptable address proof is:
- Utility Bill – Telephone or Electricity bill not more than 3 months old
- Ration Card
- Aadhar Car
- Driving License
Business Address Proof :
- Trade License
- Lease Agreement
- Sales Tax Certificate
- Utility Bill under the name of the business – Telephone or Electricity bill, not more than 3 months old
- Proof of Age of the Applicant(s): even though it may be a business, the partners, individuals or directors involved in the business need to submit their proof of age as one of the documents required for MSME Loans.
- Business Plan; this would be necessary to ascertain your business, the industry and the long term growth prospects before the loan is sanctioned.
- Bank Statement: Bank account statement under the name of the company of the last 6 months.
- Income Proof: this is the income proof of the business that could be the Income Tax Returns with the profit and loss account and balance sheet.
Registration Proof: A vital documentation required for MSME Loans is proof of registration that could be:
- Partnership deed
- Memorandum of Associations (MoA), Article of Associations (AoA)
- Sales Deed
- Copy of Licenses & Certificates
- Rent agreement
- MSME Certificate also known as Udyam Registration Certificate