Micro, small and medium scale industries (MSMEs) play an important role in boosting the economy of the country in every countries of the world. With the help of which a large number of jobs are created within the country which help to increase the economy of the country. And promotes economic development in the country and searches for new innovations. This segment is very large in India, it consists of more than 6.30 crore units. These units employ about 11.10 crore people. Therefore, MSMEs contribute a lot to the GDP of the country. The segment’s share in this is around 30%.
Overall, MSME is one of the most powerful engines in the country’s economy. With the help of which the economy of the country gets a boost, India’s economic development can be increased further by supporting this sector through the government.
There are still many challenges before MSMEs. To increase the business even more, they have the problem of money, lack of money is holding the legs of entrepreneurs in chains.
Many times business people do not even know about the methods of taking loans, due to which their loan applications are not approved. The pace of loan disbursement of financial institutions slows down.
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There are some things you must keep in mind while taking an MSME business loan
- A good credit score is your credit. Which helps you to get any type of loan. Through a credit score, any financial company that gives a loan can find out about you, how it has played a role in repaying your first loan. Or you still have arrears of old loan. It is only by looking at your old records that financial companies decide whether to approve your loan or not. Many financial companies also offer loans to their customers with good credit score at low interest rate.
- Financial companies and banks that lend you loans also check your bank accounts, based on your statement and business, find out how many transactions you have in your month. Also know the liability in respect of loans, EMIs etc. Gets applied. Due to the increasing technology, now it has become very easy to review bank transactions as well, it shows the ability of loan repayment of MSME. Today many fintech companies and banks are using this type of technology to give loans.
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- To get a loan, first contact your existing bank and for business loan, first of all contact the bank where your savings or current account is open. Because this bank has complete details of your entire transaction amount. Therefore, you do not have to work hard, so you can offer to take a loan with better conditions.
- At the time of business loan, your business is also seen that you are going to invest these loans but how sustainable a business will be depends on many things. Customer satisfaction, growth strategy and market understanding are key in this. The more successful a business is at these points, the more successful it will be.
- In today’s time, even those without credit history can get loan easily. But it is a different matter that it falls in the category of expensive loans. The older your business, the easier it will be to take a loan.
- To get a business loan, you should have an idea about future projections and expansion plans. Reasonable estimates should be kept in its favor. Loan lending companies show the credibility of paying your loan whether you will be able to deposit the loan after taking it or not.
- You can apply for a loan according to your needs. You should also consider that date. In which to pay it. Keep the loan duration in such a way that it makes it easier for you to pay the loan.
- Business loan amount should be spent only in the business for which you have taken a loan. Because at the time of processing the application for business loan, banks also emphasize on which business the loan amount will be used. Therefore, be very cautious about the use of this money, do not use it to complete any wrong actions, so that you do not have problems in any way later.
- If you repay the loan with full responsibility, a good image will be created in your financial companies and banks, so that you will not have any problem in getting a loan in the future. Keeping these things in mind, you can increase your business.
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Some important documents for registering in MSME business loan
- In the MSME MSME Business Loan, some necessary documents are required for the traders to register.
- PAN card and duplicate copy of the applicant
- Aadhaar card, passport, driving license, Voter ID Card and duplicate copy of all these as applicant’s certificate
- Recently taken passport size photo of the applicant
- Bank copy of applicant and photo copy of his statement
- If the applicant does their industry at a rented place, the applicant will not have to get a certificate of agreement with the place owner.
- If the applicant runs his industry in his own property, then for this he must have all kinds of property documents.
- Oath certificate of the applicant
- Declaration document and NOC of the applicant
- In addition, the applicant will need two people as its guarantor.
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Financial proof required for MSME business loan
- 12 months (bank statement of last)
- Business Registration Certificate
- Properwriter PAN Card
- Company PAN Card
- 2-year (final) profit and loss balance sheet
- Sales Tax Document
- City tax document
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Complete process for applying MSME loan:
- To register under MSME Business Loan, first you have to open the official website of MSME https://udyamregistration.gov.in/
- Here, you have to fill the name and Aadhaar number of the applicant, and all the information step by step.
- Here you will also be given the option to generate an OTP. That OTP will be sent to your number which will be linked to your Aadhar card.
- After entering OTP then click on Validate –
- Now a form will open in front of you.
- On which you have to fill the detail of the applicant –
- After filling this form correctly, submit it.
- Now click OK to confirm the final after submission –
- A new OTP will once again come on the mobile number of the applicant.
- After submitting that OTP, click on submit final to submit the application form –
- Complete the form, you will get the registration number, which you can write down anywhere.
- This number will help you to check the status of your loan.
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Which banks can get MSME business loan
- SBI – SBI BANK
- HDFC BANK
- Allahabad Bank – ALLAHABAD BANK CENTRAL BANK OF INDIA
- ICICI BANK
- Oriental Bank of Commerce – OBC BANK
- Union Bank of India – UNION BANK
- Bajaj Finserv (NBFC) BAJAJ FINSERV NBFC
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