MSME Loan Restructuring

With the constant growth of MSMEs (Micro, Small, and Medium Enterprises) in India, lenders now offer exclusive loan products for MSMEs. The government has also introduced loan schemes for businesses under the MSME sector. Numerous financial institutions offer MSME loans to start-ups as well. The Reserve Bank of India (RBI) stated that MSME loan borrowers would be eligible for loan restructuring facility. Small businesses generally take MSME loans to fund their business operations. For instance, they can take the loan for purchasing equipment, raw materials, or expand the business.

Many banks and lending institutions offer MSME loans under government schemes. They are as follows:

• Credit Guarantee Funds Trust for Micro and Small Enterprises (CGTMSE) scheme
• Prime Minister’s Employment Generation Programme (PMEGP)
• Micro Unit Development and Refinance Agency (MUDRA Loan)

• Proprietorships
• Partnership Firm
• One Person Company
• Limited Liability Partnership
• Any association of persons
• Co-operative societies
• Limited Company
• Hindu Undivided Family
• Producer Company
• Private Limited Company

• To be eligible for MSME loan, the applicant must be between 25-55 years of age.
• A business vintage of more than three years is required.
• The business should have filed for ITR for at least the past year.
• The borrower must have a minimum credit score of 750.
• A clear record of loan repayment in his/her name or the name of the business.

The following are the documents required to apply for an MSME loan.

• Identity proof such as Aadhar Card, Passport, Voter ID card, etc.
• Address proof like Electricity bill, Telephone bill or Driving License etc.
• Proof of business existence such as ITR filings, bank account statements for the past 3 years, etc.
• 2 Passport-size Photographs.

How to Apply for MSME Loan?

For MSME registration, you can opt for online as well as an offline process. An individual can register for an MSME loan for multiple industries with an individual registration. The following are the steps to apply for MSME loan:

• Step 1: To register, log in to udyogaadhaar.gov.in.

• Step 2: Fill in the details in the MSME registration form

• Step 3: Submit the required documents like your Aadhaar number, Address, bank account details, etc.

• Step 4: You can also submit self-certified certificates with the MSME application form

• Step 5: After uploading the details, you will receive the registration number for the loan.
   

MSME financing can be helpful in cases where your business requires financial assistance. In addition to that, relocating a business to a newer or bigger location or investing in a new product line would require a large amount. Business owners can also use MSME loan funds to expand their business and marketing budgets. At Bajaj Markets, you can easily avail MSME loans for business and use the funds to set-up or grow your business. Business Loans offer low-interest rates with a host of other benefits of the loan like a line of credit facility. 

If you are an existing customer at Bajaj Markets, based on your credit profile and other parameters, you can be eligible for pre-approved offers on Business Loans through the Bajaj Markets app. With an MSME loan, you get access to a unique Flexi loan facility and get your business loan application approved in just 24 hours. When applying for an MSME loan, ensure that you read all the terms and conditions of your loan agreement carefully before signing it. This will provide you with a seamless process in the later stage of your loan.