What is MSME Loan?
Every Micro, Small and medium businesses success is completely dependent on three pillars :
- Business Idea
- Hard work
- Capital Investment
While the first two are completely under the control of the Business owner, last one which is Funding/Capital investment is a difficult task for a business. As per the recent announcement made by the Finance Ministry at "support and outreach initiative for MSME sector" on 2nd November 2018, Now businesses (MSME’s) can avail a collateral free loan in just 59 Minutes. This move will help MSME segment to grow, expand and sustain both in national and international markets. Getting credit is a big task for any MSME in India with this new path every MSME will get access to a loan equally with minimum hassle.
LegalDocs supports and respects this ministry’s initiative, and will help SMEs to get maximum benefits of this scheme.
Documents Required to Get MSME Loan
Micro small medium enterprises registration also known as Udyog Aadhaar issued by Udyog Aadhaar Ministry is the first and foremost requirement to get this Loan. MSME can be issued in one day your Aadhaar Should be Linked with your Phone as its OTP based Process.Apply Now for MSME Registration
As per GST mandate businesses having a turnover of more than 20 lakhs per annum needs to have GST registration and it's up to an individual to get GST Number if turnover is less than 20 lakhs per Annum. Now if you want to Avail Loan GST Registration is must as GST number is Required to complete the Application Process.Apply Now for GST Registration
Income Tax Return Statement:
Once you file your business annual tax return ITR statement is generated. You need to submit last three year’s return along with the application.
Business Bank Account:
Also Known as current account is necessary for every business, as the number of transactions are different as compared to savings or personal account. To get the Current account individual’s can use GST Certificate, MSME Registration, Shop and Establishment License. In case of Partnership and Companies one can use Partnership Deed and Incorporation Certificate Respectively.Apply Now for Shop Act
Proprietor/ Director Documents:
Also Known as current account is necessary for every business, as the number of transactions are different as compared to savings or personal account. To get the Current account individual’s can use GST Certificate, MSME Registration, Shop and Establishment License. In case of Partnership and Companies one can use Partnership Deed and Incorporation Certificate Respectively.
Features of PSB Loan (SIDBI)
- 2% Discount of Interest Rates :You’ll get 2% Discount on the interest rate of the loan. The current Rate of loan is between 14-19% depending on the Loan Amount which is sanctioned.
- Completely Contactless : In case of traditional Loan most of the SMEs are dependent on the financial institution’s. Now you don't need to go anywhere just need to gather the documents and submit them Online and your process will be taken care
- Minimum Time and Documents: Application will be approved in 59 minutes and Loan will be disbursed in the beneficiary account in 8 working days. The requirement of documents is also minimum which is GST Registration, MSME Registration, Income Tax Return Statement, and Bank Statement. Best thing is all of these can be downloaded online.
- Integration with Multiple Platforms: The Loan process is well integrated with all the stakeholders like GST, Income tax(CBDT), CGTMSE to check the eligibility of borrowers which means you don't need to run from office to office for NOC’s and Approvals.
MSME Loan FAQs
.What is the minimum and maximum loan amount one can borrow through the portal?
Is it required to provide fees for registration?
What is the Eligibility Criteria for PSB Loan in 59 minutes?
What data/ documents are Required to get the loan in 59 minutes
B.Income Tax Details: Either Upload latest 3 years ITR in XML format or Provide PAN, Date of Birth/ Incorporation, Password of Income Tax Account on www.incometaxindiaefiling.gov.in
C.Net Banking Details: Either upload Bank Statements for last 6 months in PDF format or Provide Login ID and Password (Borrower can upload Bank Statements for Maximum 3 Bank Accounts on the Portal. Please upload bank statements having Major Business Activities)
D. Details of Directors/Partners/Proprietor
E. Details related to Loan Required and past loan taken.