How To Apply For An MSME Loan Online?

Today, applying for an MSME loan is easier than ever before. In this guide, we walk you through the steps for applying for an MSME loan online!

8 Dec,2022 11:07 IST 127 Views
How To Apply For An MSME Loan Online?

MSMEs are the backbone of the Indian economy. They are the growth engines of modern India and uplift the country with technology upgrades, infrastructure development, and modernisation. The Government supports MSMEs immensely and developed generous funding terms for the same. But how to apply for an MSME loan?

What Are MSMEs and MSME Loans?

The Micro, Small, and Medium Enterprises Development Act 2006 defines the MSME as Micro, Small, and Medium industries involved in commodity manufacturing and processing. MSMEs are classified depending on their investment and turnover.

• Micro:

Investment in Plant and Machinery or Equipment of Rs. 1 crore, and the Annual Turnover within Rs. 5 crores

• Small:

Investment in Plant and Machinery or Equipment at a maximum of Rs. 10 crores and Annual Turnover of Rs. 50 crore

• Medium:

Investment in Plant and Machinery or Equipment should be at most Rs. 50 crores, and the Annual Turnover should be within Rs. 255 crores.

MSME loans are a type of unsecured loan that financial institutions provide to support entrepreneurs. MSME loan is a categorised loan. You can apply for an MSME loan online with IIFL Finance.

How To Apply For An MSME Loan?

You can apply for an MSME loan online using the below steps.

• Visit your lender’s online portal and fill in the application form.
• Submit the documents after completing the initial verification.
• Once all the documents are verified, the lender will share the agreement with you.
• The lender will transfer the funds after you sign the loan agreement. Often it takes less than 48 hours to disburse the loan.

Eligibility Criteria To Apply For An MSME Loan?

Some essential eligibility criteria to avail of an MSME loan include the following.

• The applicant must be 18-22 years old minimum, depending on the lender.
• The applicant must be in any profession–private company or sole proprietor involved in trading, manufacturing, and services.
• The applicant must have five years of business experience and three years in the concerned business.
• The applicant must have a minimum turnover of Rs. 2 lakh (might depend on the lender)
• The business should be registered as an MSME in the Udyan portal and provide the MSME certificate.

What Are The Advantages Of Opting For An MSME Loan?

MSME loans are special credit facilities and provide the following advantages over any other business loan.

• Collateral-free and doesn’t require you to pledge any of your assets
• Flexible tenure, ranging between 12 to 60 months
• Lower interest rate
• Quick and easy online loan disbursal
• Minimal document requirement
• Pre-approved offer for select customers from elite institutions

Avail Of An MSME Loan From IIFL Finance

IIFL Finance provides MSME loans in India with competitive interest rates and flexible terms. We are your one-stop solution for all MSME funding requirements, and you can avail of an MSME loan from your office or home. You must also check the website to learn how to apply for an MSME loan.

Apply for an MSME loan with IIFL Finance for a hassle-free experience.

Frequently Asked Questions

Q.1: What are the documents required for an MSME loan?
Ans: The documents required for an MSME loan include the following.
• Applicant’s and the concerned business’ PAN Card
• Applicant’s and business’ address proof
• Bank and income statements, in addition to Form 16
• Previous two years’ income tax return

Q.2: How to apply for an MSME loan online?
Ans: You can apply for an MSME loan from your home or office. You just need to log in to your lender’s portal and fill out the application form. After the application is verified, you must submit your documents. After document verification, sign the loan agreement before the lender disburses the loan to your bank account.

Disclaimer: The information contained in this post is for general information purposes only. IIFL Finance Limited (including its associates and affiliates) ("the Company") assumes no liability or responsibility for any errors or omissions in the contents of this post and under no circumstances shall the Company be liable for any damage, loss, injury or disappointment etc. suffered by any reader. All information in this post is provided "as is", with no guarantee of completeness, accuracy, timeliness or of the results etc. obtained from the use of this information, and without warranty of any kind, express or implied, including, but not limited to warranties of performance, merchantability and fitness for a particular purpose. Given the changing nature of laws, rules and regulations, there may be delays, omissions or inaccuracies in the information contained in this post. The information on this post is provided with the understanding that the Company is not herein engaged in rendering legal, accounting, tax, or other professional advice and services. As such, it should not be used as a substitute for consultation with professional accounting, tax, legal or other competent advisers. This post may contain views and opinions which are those of the authors and do not necessarily reflect the official policy or position of any other agency or organization. This post may also contain links to external websites that are not provided or maintained by or in any way affiliated with the Company and the Company does not guarantee the accuracy, relevance, timeliness, or completeness of any information on these external websites. Any/ all (Gold/ Personal/ Business) loan product specifications and information that maybe stated in this post are subject to change from time to time, readers are advised to reach out to the Company for current specifications of the said (Gold/ Personal/ Business) loan.

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