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Financial institutions offering MSME loans and other credit facilities set certain eligibility and document requirements. Lenders approve your application only if you meet the criteria and submit the necessary documentation.

What are the Eligibility Criteria for an MSME Loan?

Here are the general eligibility criteria to avail of an MSME loan:

  • You should be an Indian citizen

  • You should be between the age of 24-70 years

  • You should have a credit score of 685 or above

  • The business should be successfully running for a minimum of 3 years

  • The business should have filed ITR (Income Tax Return) for a minimum of 1 year

  • There should be no record of default in your or the business’ credit history



With respect to the above criteria, the following entities can apply for an MSME loan:

  • Partnership firms

  • Hindu Undivided Families (HUFs)

  • Limited Liability Partnerships (LLPs)

  • Limited companies

  • Women entrepreneurs 

  • Proprietorships

  • Self-employed professionals

  • Co-operative societies

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Documents Required for an MSME Loan

Once you are certain that you are eligible, you can apply for an MSME loan with the following documents:

Proof of identity (any of the following)

  • Aadhaar card

  • PAN card

  • Passport

  • Voter ID

Proof of address (any one of the following)

  • Utility bill (telephone or electricity)

  • Aadhaar card

  • Passport

  • Driver’s licence

Proof of business

  • Business certificate

  • Profit and loss statements for the last 3 years

  • Income tax returns for the previous financial year

  • Passport-size photographs


Keep in mind that the above requirements are generic in nature, and you may need to submit additional documents or meet eligibility criteria as per the financial institution. 

FAQs on MSME Loan Eligibility Criteria & Documents Required

Can a start-up apply for an MSME loan?

Yes, provided they meet the eligibility requirements, start-ups can apply for an MSME loan.

Do I need to provide collateral to get an MSME Loan?

As per RBI regulations, banks must offer loans of up to ₹10 Lakhs to entities in the MSE sector without any collateral.

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