Apply for MSME Loan

How To Apply For An MSME Loan & Get Approved?

Introduction

Micro, Small, and Medium Enterprises (MSMEs) are considered the backbone of the Indian economy. They contribute around 30% of the country’s GDP. Further, they also have employed about 117 million people in the last few years.

However, with a decrease in funding, it has become increasingly difficult for these businesses to scale up or expand. Starting a business is often easier said than done. It is not uncommon to stumble through the financing process, and that is where an MSME loan can make all the difference. 

How to Apply for MSME loans?

MSME loans are loans availed by companies registered under the MSME scheme to expand their businesses.

The question that many companies often ask is How to apply for MSME loans?

To apply for an MSME loan, they have to fulfill the requirements of the lender.

The MSME loan eligibility criteria with Fullerton India are:

  • Private companies engaged in the trading, manufacturing, or services sector, sole proprietors can apply for an MSME loan. 
  • Individuals who want to apply for an MSME loan must be at least 22 years of age when applying and no older than 65 years at the time of maturity.
  • The applicant should have 5 years of experience in the industry, and 3 years of experience with the particular business.
  • To qualify to apply, the business should generate a turnover of at least Rs. 10 lakhs a year and must be profitable for the past 2 years.
  • Registering an MSME in the Udyan portal and providing a certificate is a prerequisite for applying for a loan.

Individuals are also advised to make sure to check the documentation requirement of the lender.

Conclusion 

Accurately assessing your needs and finding the right provider is crucial to your company’s financial success in the long run.

With Fullerton India, getting an MSME loan is seamless; get a loan with flexible repayment tenures at attractive interest rates and easy to meet MSME loan eligibility criteria.

Must Read: 5 Noteworthy Advantages & Features of Taking an MSME Loan

What is an MSME loan- & Eligibility Criteria for Applying ?

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MSME Loans are loans for small and medium enterprises, registered with the MSME Ministry of the Govt of India. MSMEs often face the problem of a lack of funds to expand their business. MSME loans help them in expanding and becoming self-sustainable. Certain lenders, offers MSME loans up to Rs 50 lakhs, based on the eligibility.

To understand who qualifies as an MSME, the table below will offer you comprehensive information:

Classification Micro Small Medium
Manufacturing Enterprises and Enterprises rendering Services Investment in Plant and Machinery or Equipment:
Not more than Rs.1 crore and Annual Turnover ; not more than Rs. 5 crore		 Investment in Plant and Machinery or Equipment:
Not more than Rs.10 crore and Annual Turnover ; not more than Rs. 50 crore		 Investment in Plant and Machinery or Equipment:
Not more than Rs.50 crore and Annual Turnover ; not more than Rs. 250 crore

What is the eligibility of an MSME Loan?

Here are the common criteria for an MSME loan:

  • Age Criteria: Minimum 22 – 65 years 
  • In case of Individuals: Individuals who have been engaged in the current business for at least three years with a total of five years of business experience.
  • Company Type: Self-employed individuals, proprietors, private limited companies, and partnership firms working in manufacturing, trading, or services.
  • Business Turnover: At least Rs. 10 lakhs per year
  • Business Vintage: Minimum 2 years in profit
  • Business with a Minimal Annual Income (ITR) of Rs. 2 lakhs per year

Additional Read: Top Reasons Why MSME Loan is The Perfect Options for Small Business Owners

How To Get A Quick MSME Loan?

Micro, small, and medium-sized enterprises play a significant role in our economy. They have shown resilience in the face of constant economic downturns. So if you have an excellent business idea, you must go ahead with it.

But how will you manage the funds? Well, you can invest in your business from your savings. However, that might not always be possible. In that case, you can apply for an MSME loan. With the growing number of NBFCs, it has become easier to get one.

Steps To Apply For MSME Loans

  1. Find Out The Purpose Of Your Loan

You might require a business loan for several purposes. Buying machinery and equipment is one of the main reasons. You have to explain the purpose to your lender.

  1. Do Your Research About The Financial Institution

Several; lenders offer MSME loans in the market. However, you have to verify their credentials before applying. Also, check the interest rates and the repayment options.

  1. Keep All Your Documents In Place

Keep a PDF version of all the necessary documents. You will have to upload them while submitting the application form. Keeping them ready will help you get faster approval, saving your precious time.

There you go. Now, you can complete your online application process. Do not forget to check the business loan requirements before you apply.

Final Word

Fullerton India makes it easier to start your dream business. You can get a loan of up to Rs 50 lakhs for your small and medium enterprise. Moreover, you do not require any collateral. Hurry and grab the opportunity to start your dream business.

Must Read: What is the Difference Between a Business Loan and an MSME Loan?