It would not be wrong to say that we are living in a business era. Directly or indirectly we are all connected to a number of business sectors. Ever thought about having your ownIJ There are many people who have or wish to have their own business. However, a successful entrepreneur needs not just an idea but also finances to fund that idea.
Understanding your business requirements, banks and NBFCs provide loans for a variety of businesses under the MSME (Micro, Small and Medium Enterprises) category.
What is MSMEIJ
Micro, Small and Medium Enterprises (MSME) are nothing but enterprises (industries) one wish to sets up for self-employment. These enterprises are broadly classified as:
1. Manufacturing Enterprises:A manufacturing enterprise is one which is involved in the manufacture/production of goods relating to any industry. These enterprises need investment from INR 25 lakh (MicroEnterprises) to INR 10 Crore (Medium Enterprises).
2. Service Enterprises:A service enterprise is one that is involved in providing or rendering service. These enterprises need an investment of INR 10 lakh to INR 5 Crore.
As the investment involved in these enterprises is sufficiently large, one needs a way to put their business in motion. That’s how MSME loan can help all budding entrepreneurs who wish to finance their business projects.
Before applying for any loan, one needs to know whether they fit the lender’s requirements or not. If you wish to apply for MSME loans, check out your MSME loan eligibility:
· Business loan for Self-Employed Professionals:The list includes chartered accountants, allopathic doctors, architects, and company secretaries. One must be practising one of the professions mentioned above to avail an MSME loan.
· Self Employed Non-Professionals:If you are a trader, manufacturer,proprietor, retailer, or service provider, you are eligible for an MSME loan.
· Entities: This includes partnerships, private limited companies and limited liability partnerships.
Once you have gone through the eligibility criteria, you can apply for the loan through a bank (offline) or Non-Banking Financial Company (NBFC) via online procedure.
To Apply Online, You Need To:
· Open the online application form
· Fill in your details (Name, PAN Card, Business Vintage, Nature of Business, etc.)
· Give further details and submit documents
Key Documents Required:
· KYC Documents
· Passport Size Photographs
· Business proof
· Financial documents related to your loan application
· Account statements
Nowadays getting an MSME loan is quick and easy through financial institutions like NBFCs. Some of the characteristic features of availing loans through NBFCs like Bajaj Finserv are:
· line of Credit:This feature provides the borrower with a certain credit limit for use. Only the interest on the amount utilised by the borrower is to be paid in monthly instalments. The principal component of the loan has to be paid at the end of the tenor.
· loan amount: You can avail MSME loan up to INR 30 lakh.
· No collateral:Borrowers can get the loan without keeping any personal or business possessions as security.
· Offers:Certain offers include top-up loans, reduced rates etc.
· Online access:If you apply for MSME loan through online portals like Bajaj Finance, you can access all details related to your business loan from anywhere at any time.
Getting a business loan needs an understanding about your goals and expectations. With so many options available, there is no need to waste time in long queues to avail loans. NBFCs make your loan procedure more flexible and quick and also offer added advantages. So, get an MSME loan to expand or set up a business and manage your finances smartly.
Also Read : Need To Know About SME loans In India
