As daunting as it sounds, the process of arranging an MSME loan for your new business is not as complicated as it is generally perceived to be. All it requires is well-conducted research. Once you decide on a new business idea that you want to invest your hard work in, it becomes a primary concern to think about how you will raise or gather funds for the same.
For an entrepreneur, we think it's the best idea to stay aware of all the loans, schemes, and policies that the government and other bodies actively introduce to the common people to ease off the financial burden that tags along with establishing a new business.
Now that the government is marching ahead to the future to make India stronger than ever, the timings could not have been better for the entrepreneurs to start their business and make the most of these schemes. This article is the perfect read for all who are trying to apply for an MSME loan for their dream businesses.
You Are Just A Few Steps Away From That Much Needed Loan
- Firstly, register yourself as an MSME by visiting udyogaadhaar.gov.in which is a national portal.
- You will be asked to provide basic details like your name and the aadhaar number. Submit them and validate them with the help of an OTP.
- Now you will see on your screens an application form which you will have to fill. Upon submitting, just to make sure that you have entered all the details correctly, the system asks you to recheck everything. Once rechecked, click “OK” to confirm.
- The system will finally ask you to fill in the OTP that you will receive on the number that is linked to your aadhaar card.
- Note down the registration number somewhere safe.
Always Be Ready With Those Documents
As basic as it may sound, it really comes in handy to keep the documents mentioned below ready with you just in case. These documents are
- Your application form
- Identity proof for which you can use your PAN card, aadhaar card, driver’s license, voter ID, etc.
- An address/residence proof for which you can use your electricity bill, rent agreement, trade agreement, etc.
- Some financial documents such as your ITR papers, bank statements, balance sheets, business turnover, etc.
- Business proof which could be supported by Business Registration, Memorandum, and articles of association, etc.
Business Specific Documents
Apart from all of the above-mentioned documents, there are some other things that are still left to be taken care of. To avoid the last-minute chaos, we are sharing with you these important documents that are specific to the type of business you have.
- Companies will need to gather the Certificate of incorporation, memorandum of association, articles of association.
- Partnership firms will have to arrange the Registration certificate, partnership deed.
- Private limited companies are supposed to be ready with a Registration certificate, articles, and memorandum of association.
- Sole proprietorships will have to check for a Registration certificate, ITR, or another proof of business identity.
- Self-Employed Professional (SEP), be ready with proof of your qualifications. For self-Employed Non-Professionals (SENP), proof of business will be more than enough.
Which Banks Are To Be Approached?
State Bank of India, HDFC Bank, Allahabad Bank, Central Bank of India, ICICI Bank, Bajaj Finserv, Oriental Bank of Commerce, Union Bank of India, and Indian Bank are some of the banks who are providing MSMEs business loans to fulfill their dreams. Always keep in mind that every bank has its own ways to figure out the rate of interest on which a business is supposed to repay the loan. Hence, we would advise you to do your research and see for yourself which bank is meeting your financial needs.