Micro enterprises – The investment doesn’t exceed Rs 1 crore and turnover doesn’t exceed 5 crores.
Small enterprises – The investment doesn’t exceed Rs 10 crores and turnover doesn’t exceed 50 crores.
Medium enterprises – The investment doesn’t exceed Rs 50 crore and turnover doesn’t exceed Rs 250 crore.’
The benefits of MSME loans are:
Quick process: Loan providers understand the need for finances on an urgent basis and help in the dispersal of funds and the process is easy and quick.
Online application: Some loan providers also allow the option of applying for the loan online to reduce excessive documentation.
Attractive Interest rate: One of the major benefits of MSME loans is a lower interest rate.
Free registration: The MSME registration process is free of cost.
Commitment free: There is no long-term commitment required mainly all the loans are short-termed. A short-termed loan helps the management to manage the cash flow and efficiently allocate available resources.
No collateral: MSME loans do not require collateral from companies to be eligible for them, so if you’re an aspiring entrepreneur MSME loans are one of the best ways to go.
The eligibility criteria for an individual to apply for an MSME loan are:
Age: An Individual should be at least 22 years of age while applying for the loan and a maximum of 65 years old.
Type of business: Sole proprietors and private companies which are engaged in manufacturing or services are also eligible for MSME loans.
Certificate: The business should be registered as an MSME in the Udyaan portal and should provide an MSME certificate.
Credit score: Applicants’ credit score should be 750 or above. The applicant must not have any record of loan default in their or the business’ name.
At Saral Designs, we provide the necessary knowledge and training to our customers so, entrepreneurs who are willing to start their own business can reach one step closer to buying a machine from Saral Designs as they can opt for an MSME loan to buy the machine.
Documents required to obtain an MSME loan are: