The MSME loan, which is processed through government programs, is a business loan for sums varying from Rs. 10 Lakhs to Rs. 1 Crore. While interest rates as low as 8% are possible, they will vary based on the individual’s credit history.
Furthermore, the loan is unsecured and comes with a processing fee of Rs. 1,000 plus taxes for customers who are approved. While the MSME loan can be approved in as little as 60 minutes, the actual disbursement can take up to 7-8 days.
- Prospective borrowers must submit the following documentation when applying for a loan:
- Bank statement for the previous six months of business-related accounts
- e-KYC (electronic Know-Your-Customer) paper
- Income tax returns from the last three years in XML format, containing tax codes and e-filing information
- GST certification is required, as well as a GST ID and password.
- Documents and information relating to current business
- Documents from your personal and educational lives
What is the MSME LOAN Application Process?
The steps for applying for the loan are as follows:
- Go to the official website and sign up as a new user under the ‘new user’ page. Enter your name, email, and mobile number to complete the sign-up process.
- An OTP is given to the phone in order to validate the credentials. Enter the OTP while also agreeing to the terms and conditions. Select the ‘Proceed’ option.
- Return to the ‘Proceed’ tab after completing the questionnaire.
- Enter your GST information, including your GST number and password, as well as your income tax information. Log in with ITR details, including PAN and date of incorporation, or enter tax information in XML format.
- For the bank to access the financial statements, upload the last six months’ bank statements or supply the bank with your net banking credentials.
- Provide all pertinent information about your company.
- Choose the loan’s purpose and, if applicable, provide information about any previous loans.
- Choose the bank you want to apply to based on the interest rates offered by different banks.
- To proceed, pay a convenience fee of Rs. 1,000 plus taxes.
- Download the letter of approval.
While the government is working hard to make the country more business-friendly and provide simple access to credit, a thorough examination of the MSME business loan is required to discover the scheme’s bottlenecks and shortcomings. Only time will tell if the move was successful!
If you’re looking for a business loan, the Finserv MARKETS App will be an excellent place to start. It has a flexible payback period, great deals, a business loan calculator, and top-up alternatives. Finserv MARKETS loan app’s entire application and approval procedure is simple, quick, and can be completed fully online.