So many new businesses are coming up each day, and with that is arising the need for capital to fund these businesses. While looking for an investor is not a choice for small business owners MSME loan is the best option. Let us see why. 

MSME loan features:

To encourage MSMEs, the government of India, in collaborations with other financial institutions have started different schemes offering business loans to MSMEs in India. Let us see the features of MSME loan:’

1.      The MSME loan has minimal eligibility criteria to qualify for the loan.

2.      The MSME loan also helps small businesses save on certain taxes. 

3.      As the loan is driven by the government of India, equal opportunity is provided to each business. Startup business loans for women are also provided under it. 

4.      The MSME loan helps in providing funds to small businesses for capital growth. 

No matter what your business is, the funds from MSME loans can be used for any kind of business requirement.

Qualifying criteria for MSME loan:

To qualify for the MSME loan, the requirements areas follows:

∙        A proper Business plan

∙        A registered business

∙        Profit and loss statement

∙        Last year’s ITR filed for your business

∙        A good credit history

∙        Certificate from all the authorized bodies

∙        Your permanent address proofs

∙        Sign of co-borrower (if any

∙        Collateral documents (if required)

∙        Bank Statement

∙        Business should have a realistic projection.

∙        The business should have an end-use of funds.

The government has released various schemes like Stand-up India, Pradhan Mantri Mudra Yojana (PMMY), MSME Business Loans for Start-up’s In 59 Minutes and many more that offer MSME loan to businesses. Based on your requirement you can make the best of these schemes to fund your own business.

Must Read: Follow these Easy Steps to Get A MSME Loan