Documents Required for MSME Loans

If you own a business enterprise that falls under the MSME (Micro, Small and Medium Enterprise) category as per the RBI (Reserve Bank of India) guidelines and is looking for ways to get funds to expand or grow your business operations/increase your production, then you can consider applying for an MSME loan.

 

If you are not sure which MSME category your business falls under, you must be aware that the RBI has laid down strict guidelines to categorise MSME businesses based on the investment amount, annual turnover, or income earned from the business.

 

The following table will give you a clear idea about the MSME categorisation:

 

Business Category	Investment Limit	Annual Turnover Limit
Micro Business Enterprise	Less than Rs. 1 Crore	Less than Rs. 5 Crore
Small Business Enterprise	Less than Rs. 10 Crore	Less than Rs. 50 Crore
Medium Business Enterprise	Less than Rs. 20 Crore	Less than Rs. 100 Crore

 

As a business owner, applying for an MSME loan is one of the most efficient ways to raise funds for business requirements. You can get the funds and use them for any purpose you deem fit; the lender does not restrict the end usage of the funds.

 

You can use it for –

 

• Buying new machinery
• Paying employees’ salaries or office rent
• Clearing the existing dues
• Upgrading the technology
• Increasing the working capital
• Opening a new branch or setting up a new office
• Marketing purposes

 

With modern lenders in India offering digital services, getting an MSME loan has become easier than ever before. The application process is simple, and you can complete it within a few minutes. However, you must know that the lender will approve your application and disburse the amount you need only if you meet their eligibility criteria and comply with the MSME loan documents requirements.

 

Let us know about the eligibility criteria and the documents required:

 

The eligibility requirements for an MSME loan vary from one lender to another. At Udyog Plus, we have simple criteria so that everyone who owns an MSME business can get access to the funds they need to grow their business. You must meet the following requirements:

 

Age limit

You must be aged between 21 and 65 years

 

Citizenship

You must be a resident Indian citizen

 

Credit Score

Your credit score must be more than 675. Please note that most lenders consider the credit score assigned by only reputed and credible credit bureaus like CIBIL (Credit Information Bureau India Limited)

 

Business ownership

You must be an individual or own a sole proprietorship company, and your line of business must be manufacturing, trading, or services.

 

Business Vintage

Your business must have been operational for at least one year from the date you apply for the loan.

 

Business Income

Your business must have earned a minimum of Rs. 5 Lakh during the last six months from the date you submitted your MSME loan application.

 

Documents Required for Getting MSME Loan

 

Just like eligibility, the required MSME loan documents may vary from one lender to another. But at Udyog Plus, we have simple document requirements so that you don’t feel overwhelmed by the whole process and the paperwork involved.

 

You must submit the following documents –

 

• Identity Poof

  You must produce an identity poof. The accepted ID proof documents include a driver's licence, voter ID card issued by the Government of India, Aadhaar Card, passport, etc. If you are applying for a joint loan, all the applicants must submit their ID proofs.

   

• Address Proof

  You must submit address proof of both your residence and business enterprise. Acceptable address-proof documents are business registration certificates, utility bills, passports, driving licences, GST registration certificates, and Udyam registration certificates.

   

• Income Proof

  To get an MSME loan, you must also submit your business income proof. Some of the accepted proofs include – ITR (Income Tax Returns), Profit and Loss account statements, audited balance sheets, bank account statements for the last six months, business PAN cards, GST returns, etc.

   

Other documents

 

Apart from the above-mentioned documents, the lender may also require you to submit documents like your business plan for the next five years. You may also be required to submit your MSME certificate, which is also called the Udyam Registration Certificate.

 

Steps to Apply for a MSME loan with Udyog Plus by Aditya Birla Finance Limited

 

Now that you know the eligibility criteria and documents required for MSME loan, it would help to know the steps involved in applying for the loan. Today, with most lenders offering online services, the process of applying for any kind of loan has become simple and fast.

 

At Udyog Plus, we take pride in offering 100% digital services, meaning you can apply for an MSME loan from the comfort of your home or office and with just a click of a few buttons. We also have a simple four-step application process, which includes:

 

• Step 1

  Visit the Udyog Plus website and click on the Instant Business Loan under the Finance Your Business menu at the top of the screen and enter the basic details name, PAN card number, email ID, date of birth, phone number and the OTP (one-time password), check the terms and conditions box and click on the submit button

   

• Step 2

  Complete the KYC (Know Your Customer Process). Here, you must submit the documents mentioned above

   

• Step 3

  Register eNACH and eSign the agreement. Before you sign, make sure to carefully read the terms and conditions.

   

• Step 4

  Once your MSME loan application is approved, you will get the disbursement on the same day.

 

Final Word

 

Getting an MSME loan with Udyog Plus is quite easy. The online process is simple, and you get instant approval. Not to mention, the eligibility criteria are quite simple too, and you need to submit a few basic documents, which make the whole process of getting the funds easy and hassle-free.

 

So, don’t the lack of funds affect your business growth and aspirations. Apply for an MSME loan with Udyog Plus now and take your business to the level where you want to take it.