Many people apply for MSME loans, but not all get it. It is because the loans are sanctioned if the applicant meets certain eligibility criteria. These loans are called unsecured loans, and they are given to business enterprises that need financial support.
What is an MAME? It stands for Micro, Small, and Medium Enterprises. These are industries that are normally startups and small entrepreneurs.
The interest rates and repayment structure vary from lender to lender. They depend on the applicant’s profile, business history, and stability.
If you are interested in applying for a MAME loan, then read the steps carefully.
- First, go to the website www.udyogadhaar.gov.in. It is the national portal where one can register Micro, Small and Medium enterprises.
- You need to fill in the required information. Validate the information and get the OTP.
- Validate your application form by entering the OTP.
- Submit the application form after filling in all the details.
- After validating your Adhaar card, you need to finally submit the application.
- You will get the registration number.
Documents required
When you apply for the MSME loan, you should keep the following documents ready.
- Duly filled application form.
- Proof of identity. Check the list of valid documents first.
- Proof of residence. Check the list of valid documents first.
- Proof of age. Check the list of valid documents first.
- You need to get the bank statement for the last year.
- Proof of business registration.
- Copy of partnership deed and company PAN card.
- Sales tax documents and balance sheet, P&L statement. Keep the documents for the last two years ready.
- Document of municipal tax.
MSME loans are being offered by banks. You can check online and choose any one bank of your choice.
What is the turnover limit?
The turnover limits for MSME have been revised recently. You should check the official sources for that. Enterprises that have an investment of up to 1 crore and a turnover of up to 5 crores are defined as Micro enterprises.
Enterprises that have an investment of up to 10 crores and a turnover of up to 50 crores are defined as small enterprises.
Enterprises that have investment up to 50 crores and a turnover of up to 250 crores are defined as medium enterprises.
You should classify your business accordingly and apply for the loan. The process has been made quite simple and transparent.
Apply for it and take your business up to new heights. These loans are given to give a boost to the economy and encourage entrepreneurship.