Loan SSR India's No.1 Finance Blog
MSME Business Loan: After Covid-19, small and big businesses have realized the need to go digital. A large portion of the population has also seen them losing their jobs, which is why there has been an increase in the number of people willing to start a new industry. Business requires funds and these funds can be obtained through business loan.
For this one needs to apply for MSME loan. Let us know what is MSME loan, process of taking an MSME loan (msme loan for new business), MSME loan scheme. Also, let us know how to apply for MSME loan.
After Covid-19, small and big businesses have realized the need to go digital.
A large portion of the population has also seen them losing their jobs, which is why there has been an increase in the number of people willing to start a new industry. Business requires funds and these funds can be obtained through business loan. For this one needs to apply for MSME loan. Let us know what is MSME loan, process of taking MSME loan (msme loan for new business), MSME loan scheme. Also, let us know how to apply for MSME loan.
What is MSME Business loan?
MSME loan is a loan which is given to micro, small and medium enterprises i.e. small or medium sized businessmen to start and expand their business. This type of industry plays an important role in strengthening the economy of India.
Therefore, the government also brings necessary policies from time to time to take them forward. This industry also plays an essential role in employing in rural areas of India.
This business is on a slightly larger scale than shops or self-employment, hence a loan is required to run it. Let us know the process of MSME loan and what is the scheme of MSME loan? Also know about interest rates, conditions and documents in detail.
What are the features of MSME loan?
- MSME business loan from Rs 50000 to Rs 10 crore to start a new business
- MSME loan approval within 3 days and amount up to Rs 10 crore without any hassle.
MSME funding facility.
- FlexiLoan Loans offers MSME loans for new businesses with very easy terms and low repayment rates.
- MSME loan repayment is adjusted based on cash flow.
Benefits of MSME loan
Interest rate is low
If you want to set up a small scale industry then you can get very cheap interest rates. So that all your money can be used to further the business and you do not have to face much problem regarding the interest rate.
Full capital control
To get rid of the problem of finance, businessmen often have to take loans from outside like shareholders and debentures etc. due to which the entire control of the company goes to these shareholders. By availing MSME loan, you retain complete control of your business.
Can be easily obtained
This type of loan is taken for a short period of time and does not involve a long commitment. This loan is easily refunded, hence there is not much problem in getting it.
The company’s cash management improves
MSME loan is flexible and the company can use it to buy any furniture or plant etc. or it can be used as per the need.
Do Read:-
How to apply for an MSME Business loan online?
Apply online
Visit the online website that is offering the loan. Fill the required information in the online form. This information shows whether you are eligible for the loan or not.
Upload Documents
Upload the necessary documents like KYC document, current account bank statement etc. online.
Credit analysis
After this the website will analyze your business and find out how much loan you are eligible for and at what rate you can get the loan.
Loan disbursement
After the documents are verified and the loan is approved, the loan agreement will be shared with you. The loan amount will be credited to your account within the next 48 hours of signing.
Eligibility Criteria to Avail Online MSME Business Loan
- The age of the person applying for this loan should be between 21 years to 65 years.
- This loan is available only to Individual Corporation, Sole Proprietorship, Private Company involved in trading or production.
- The person applying should have worked in this industry for three years and should have at least 5 years of experience.
- This loan is available only to those businesses which are running for more than a year and whose monthly sales are above Rs 2 lakh.
- Make sure that the company is tax compliant and there are no mistakes in the previous accounts.
What documents will be required to get an MSME business loan?
Personal KYC: PAN Card
Residential Address Proof: Rent Agreement, Driving License, Voter ID, Ration Card, Aadhar Card, Passport.
Bank statement of current account of last 6 months.
Business KYC: GST Registration Certificate, Shop and Establishment Certificate.
Financial Documents: (For amounts above Rs 20 lakh): Two years audited financials, Last two years ITR, 6 months GST returns.
Now, to take your small or medium sized industry forward, stop worrying about funds and apply for a loan today. If the documents are correct and you are eligible for the loan, then the loan will be easily available to you at affordable rates.
EMI check for MSME Business loan
The monthly payment that is made to the loan company is calculated by calculating the total amount, maturity period and interest rate. Which can be checked with EMI calculator.
MSME Business Loan EMI calculator
If you calculate EMI manually then there may be some error. For this, EMI calculator should be used.
E = P x r x (1+r)^n/ [(1+r)^n – 1]
When is the best time to take an MSME loan?
Applying for an MSME loan from Flexion is very easy because Flexion cares about the well-being of the customers. Therefore it gives loans at low rates and on short terms.
- When you are thinking of buying land to establish a business.
- When you’re starting a factory.
- When you are buying a machine or vehicle.
- You are buying raw materials to run your business.
- You may be paying salary, bills or loan, etc.
- You may be looking to grow your company.
- You are getting renovation work done.
