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:
The loan restructuring framework for MSMEs has provided relief to a large number of stressed MSME borrowers. Due to the pandemic continuing to disrupt normal functioning and cash flows, the stress in the MSME sector has increased. The MSME loan restructuring framework will have to be implemented by March 31, 2021
This restructuring scheme will cover the weight of existing loans sanctioned to individual borrowers and will help them in making loan repayments according to their current repayment capacity. This loan restructuring will mainly benefit those people who are facing salaries cuts or those who have lost their jobs amid the pandemic situation. The India Ratings and Research Agency stated that in the time period between September 2019 and April 2020, the proportion of rated mid and emerging corporates (MEC) in the loan default category that was around 10% has now increased to 18%. The agency also estimates that 60% of its rated MECs qualify as MSMEs under the new definition.
The following are the criteria for MSMEs dealing in the manufacturing & services sector
The following are the documents required to apply for an 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. MSMEs can avail a loan of up to Rs. 30 Lakhs without any collateral required.
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.
“Bajaj Markets, a subsidiary of Bajaj Finserv, is a one-stop digital marketplace that has been created for consumers on the go. It offers 500+ financial and lifestyle products, all at one place. At Bajaj Markets, we understand that every individual is different. And that’s why we have invested in creating a proposition – Offers You Value. A value proposition that ensures you get offers which are tailor made for you. We also offer an amazing product range and unique set of online offers across Loans, Insurance, Investment, Payments and an exclusive EMI store. Be it in helping you achieve your financial life goals or offering you the latest gadgets, we strive to offer what you are looking for. From simple and fast loan application processes to seamless and hassle-free claim-settlements, from no cost EMIs to 4 hours product delivery, we work towards fulfilling all your personal and financial needs. What’s more! Now enjoy the same benefits in just one click with our Bajaj Markets App.”