MSME sector is a vital pillar and it has a significant contribution to the Indian economy. The government offers the MSME sector with financial help to keep the business running smooth. There are several MSME business loan schemes provided by the government.
MSME industry employs more people with less space, more production in resources, and cost. The government has launched its new scheme, which is – MSME loan in 59 minutes.
Because the businessmen involved in the MSME industry are ordinary businessmen and there is often news of small industries getting submerged in debt.
Taking care of these facts, the central government is working to provide MSME business loans to these business owners of this industry by running special schemes. Ziploan, a country’s leading NBFC is working very hard to provide a business loan to MSME businessmen.
A business loan of up to Rs 7.5 lakh is provided to MSME businessmen in just a matter of 3 days* without anything security. Government of india has also launched CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises), and under this scheme the money lender, which can also be an NBFC can provide financial assistance to MSMEs.
CGTMSE Loan can be availed by simply preparing a strong business plan report, and you can apply for the sanction of the business loan. Once you’ve done this, you get the coverage under the CGTMSE scheme.
Let us understand in detail how to apply for an MSME loan.
Documents Required for MSME Business Loan
To apply for an MSME loan, the applicant will need the following documents:
- GST Details: the applicant has to provide GSTIN (GST Identification Number), GST user name, and OTP.
- Income Tax Details: the applicant has to provide the latest three-year ITR in the XML format.
- Bank Statement: bank statement of the previous six months in the PDF format. The applicant can upload the bank statements of his three bank accounts. It is recommended that he upload the statement of the major bank activities.
- Details of the business loan required
- Proprietorship/Partners/Directors details
- E-KYC documents of the applicant
How to Register for an MSME Loan?
The applicant is bound to follow the following steps to apply for an MSME loan in India:
- Go to the MSME Loan in 59 minutes website.
- Next, register yourself by filling name, email address, and mobile number — then click on GET OTP.
- Enter the OTP received on the mobile number.
- Agree to the Terms and Conditions in the checkbox. Then click on proceed.
- Don’t forget to create a password for the account for future reference.
Important Things to Keep in Mind
- The amount of business loan is available within 3 days* of applying. (Subject to availability of paper documents)
- The loan can be applied online from home through the website or from the mobile loan app
- The amount of business loan is prepayment free after 6 months
- You can repay the loan amount between 12 to 36 months
Eligibility Criteria of MSME Loan
MSME loan eligibility criteria are simple to let more and more business individuals make the most out of their businesses and take it to the next level.
- An established MSME with more than 2 years in business
- Minimum annual turnover of Rs. 10 lakhs in the last year.
- The business must not have any default history and the income tax filed during the last year should be more than Rs. 1.5 lakhs.
- The borrower should own either house or business place.
Frequently Asked Questions:
MSME stands for Micro, Small, and Medium enterprises. MSME loans are unsecured loans offered by several NBFCs to cater to varied business related expenses on credit.
The loan amount starts from Rs.1 lakh and goes up to Rs.5 crores.
Under the CGTMSE scheme, the member lending institution or NBFC, who lends money to the MSME industry are eligible for a maximum credit limit of Rs. 2 crores.
The loan application is processed in 59 minutes. The applicant is informed about his eligibility in the said duration. Howsoever, it takes 7-8 days for the disbursement of the loan amount.
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