Who does not dream of doing business in their life? Everyone wants and thinks that he should build his business empire and with his support to fulfill all the wishes of his life, but the biggest obstacle in doing business is the hindrance of capital. The greatest talented person becomes helpless in front of the capital.
But hold on! If you are also among those people who are talented and want to build their business, but there is a capital barrier in the way, then we have brought all the information for you about the business loan. We will give you information about what is the interest rate for it, what documents are required for it, what should be the qualification for it, what is the whole process of it.
How to Avail An Unsecured MSME Loan?
The question that must be arising in your mind is how much loan can be got under MSME, then we tell you that there are two ways through which unsecured loan can be taken – getting a loan through government schemes and private players.
In the loan through the government scheme, you can take an amount from 50000 to 2 crores. There are mainly three types of loan categories. The first is the Shishu loan which is ₹ 50000, the second is the Kishore loan which is between 50000 to 500000 and in Tarun loan, and you can get a loan from 5 lakh to 20 lakh. Apart from this, loans up to two crores can be obtained under the CGTMSE scheme.
However, we should let you know that some changes have been made in the category of MSMEs. Now, businesses with an investment of 1 crore and turnover of 5 crores are included in the micro category, while businesses with an investment of 10 crores and turnover of 50 crores are included in the small category. Similarly, in the medium category, businesses with an investment of 50 crores and a turnover of 25 crores are included. The loan is also given to you based on this category.
The biggest thing is that you will see many benefits in MSME loan. Just like here you get a loan without any guarantee, and you do not have to pay any hidden charge. The process is very easy and loan renewal is also easy to do. Loan gets approved very quickly. Many times you can get approval of loan in just 3 days.
The other sources to get business loan are banks and NBFCs
Talking about banks, many banks provide loans for MSMEs, but State Bank of India (SBI), Bank of India (BOI), Punjab National Bank (PNB) and Corporation Bank give you comparatively very low interest rate. If you talk about SBI Mudra loan, it is given to you at the rate of only 9.75%, same as Bank of India at 10.20%, then PNB and Corporation Bank give you MSME loan at 10.30%. Talking about private bank, HDFC and ICICI give you loan at the rate of 13% and the rest give you loan at even more interest. Many banks charge interest at the rate of 18%. The interest rate above is without GST.
Similarly, there are many NBFCs such as ZipLoan, Lending kart, Stashfin, etc. that provide unsecured business loan at a rate higher than that of banks but the loan is processed very quickly with the means of digital technology.
Talking about the ability to take a loan, it is necessary for you to be an Indian citizen. At the same time, you should be between 25 to 66 years old. Your business must be at least 3 years old. A self-employed person is equally qualified to apply for a business loan as a professional or non-professional. It can be applied for partnership firms as well, it is equally valid for LLP and Private Limited.
The documents required for the MSME loan are ID and address proof to take a loan. Apart from this, you need a PAN card, and if you have a Partnership Company, then partnership deed, company PAN card, business certificate and 1-year statement of your bank, balance sheet required for at least 2 years.
To apply, go to the official website of a bank, NBFC and apply online for MSME loan there. Here you have to fill your personal and business details after that you have to upload the relevant document then by verifying it at the end you submit it. And in this way your loan gets approved very easily.
Apparently the government provides loans to promote your business at many levels.