As MSME loans are unsecured MSME / SME Loans, there are some minimum eligibility requirements in order to reduce the risk for lenders,

In order to avail of an MSME loan, one needs to fulfill certain eligibility factors.
These are listed as follows:

• The business for which loan is availed should be set across the service or manufacturing sector.
• The investments in the manufacturing sector should not exceed Rs. 10 crores.
• he investments in the service sector should not exceed Rs. 5 crores.
• The business should be in operation for more than six months, in case the fund is borrowed for business expansion.
• The business set up should not fall under the blacklisted categories.
• The applicant of MSME loan should be aged above 25 years of age.

To apply for an SME or MSME loan from Bajaj Finserv, you must be one of the following:
• Self-employed professionals (SEP) :
Allopathic doctors, company secretaries, chartered accountants, and architects who are practicing their profession
• Self-employed non-professionals (SENP) :
Traders, retailers, manufacturers, proprietors, and service providers
• Entities :
Partnerships, limited liability partnerships, private limited, and closely held limited companies

In addition:
• You should be an Indian resident aged between 25 and 66 years
• Your business should have a vintage of at least 3 years

• Applicant Age: 18 years – 75 years
• Business Vintage: Minimum 3 years with cash accruals for last 2 years
• Entities having CA Certified / Audited Balance Sheets (ABS)
• Constitution: Proprietorship/ Partnership/ Pvt. Ltd Companies/ Limited Companies

The documentation requirements for business loans are :

• Identity proof:
  Applicants need to provide identification proof with appropriate KYC documents including Aadhar card, voter ID, PAN card, passport, driving license or any other valid document issued by the government.
• Address proof:
  Other than KYC, documents like passport, electricity bill, ration card, telephone bill, lease agreement, trade license or certificate of trade license can be used as address proof when applying for a Bajaj Finserv Business Loan. Applicants can also opt for any other document issued by the government as address proof to complete their loan application.
• Financial documents:
  The common business loan documents list that self-employed professionals and non-professionals need to submit are as follows:
• A copy of Income Tax Return filed for at least one year
• Bank account statement for the last 6 months
• Balance Sheet and Profit & Loss Statement for the previous 2 years, audited by a CA

• Business ownership proof
  The proof of business ownership required for a Bajaj Finserv Business Loan depends on the type of business and applicant profile. Documents for various business profiles are mentioned below:

• • For self-employed professionals:
    Registration document in case of sole proprietors.Other proofs of business identity for self-employed professionals include documents issued in the concern’s name like PAN card, payment receipt for municipal tax, electricity bill, IT returns, etc.
  • For self-employed non-professional:
    Sole proprietor’s registration document, individual identity proof of the owner, IT Returns, at least 6 months of bank statements of the owner, statement of creditor/book debt/periodic stock, GST return, etc.
  • For other entities (Partnerships and Private Limited companies):
    Partnership agreement in case of partnership firms and Certificate of Commencement/Article and Memorandum of Association for Private Limited companies. Other supporting documents for these concerns include returns of Income Tax, Goods and Services Tax, registration certificate under the Shops and Establishment Act, etc. Besides, partners and directors also need to submit individual proofs of identity.

• Business Plan
• Duly filled Application form for MSME loan apply
• Passport-sized photographs
• KYC Documents of applicant and partners or co-applicants
• Age Proof
• Income Proof of the applicant
• Business address and existence proof
• Rent agreement, Sales Deed, Memorandum of Association’s (MoA), Article of Associations (AoA)
• Copy of Licenses, Certificates and Registrations, if applicable

• Last 12 months’ bank statement
• Business registration proof
• Proprietor(s) PAN Card Copy
• Partnership deed copy
• Company PAN card copy
• P&L and balance sheet copy of last 2 years
• Sales tax documents
• Municipal tax document

• Understanding your Business Requirements

The first and most important aspect of getting any business loan is to understand what the requirements of the business are? It will then tell you which type of loan should you go for. It can be a working capital loan, machinery loan, small business loan, and so on. It also helps you in convincing your lenders as they will be aware of how the loan amount is going to be utilized.

• Find out Lending Options

If the number of options present is an advantage, it is also a headache to choose the best lender for the business. There are several NBFCs in the market, offering different MSME loan schemes, and any business must carry out a good amount of research to identify the best NBFC for your business. Apart from the rate of interest, a business must also understand how customer-friendly policies are, which slightly varies from one NBFC to another.

• Apply Online

After completing the research and reaching a decision regarding the particular NBFC you are going to go for, visit their website and fill in the application form online. Be careful while filling up your application form and make sure you give all the right information, or else, it might reduce your chances of getting the loan.

• Keep your Documents Ready

After submitting the application form, you would be asked to upload some basic documents for the verification process. Make sure you have all of them ready beforehand so that you can get your business loan approved as fast as possible.
Upload the PDFs of the documents and wait for the verification process to complete.

• Get your Funds

Once the documents are verified, and your application is approved, the funds get credited in your account within a few working days. Now, all you need to do is smartly utilize the amount to be able to pack the business loan amount in time.

Opportunities are aplenty, but you need to be smart enough to capitalize on them. Make sure you use the business loan amount in an efficient manner which ensures the growth of your business along with the repayment of the loan in the stipulated time.

• Address proof of individual:
  Aadhaar Card, Voter’s ID Card, Bank statement, registry copy, rent agreement, utility bills
• Identity proof of individual:
  Passport, Driving License, PAN Card, Aadhaar Card, Voter’s ID Card</li>
• Business existence proof:
  PAN, sales tax/ excise/ VAT/ service tax registration, Copy of partnership deed, Trade license, certificate of practice, registration certificate issued by RBI, SEBI
• Copy of Income Tax PAN for 24 months
• Bank statement of last 6 months

• Identity proof:
  PAN card, Aadhaar card, driving license, passport, voter’s ID, etc.
• Address proof:
  Ration card, electricity bill, lease agreement, trade license, etc.
• Financial documents:
  Last two years ITR, audited balance sheets and profit and loss statements, last 6 months’ bank statements, projected turnover, etc.
• Business proof:
  Registration certificate, memorandum and articles of association, other certificates of business’ existence.

Specific documents as per your business type
The documents required for MSME loans that you need to produce differ as per business type:

• Sole proprietorships:
  Registration certificate, ITR, or other proof of business identity. In case you are a Self-Employed Professional (SEP), you should produce proofs of your qualification. For self-Employed Non-Professionals (SENP) like retailers and traders, proof of business suffices.
• Companies:
  Certificate of incorporation, memorandum of association, articles of association.
• Partnership firms:
  Registration certificate, partnership deed.
• Private limited companies:
  Registration certificate, articles, and memorandum of association.

• Application Form
• Financial Statements
• Business License
• KYC Docs

The following documents have to be submitted along with your duly filled loan application form to avail an
MSME/SME business loan with Tata Capital:

• Photo Identity Proof:
  a copy of Voter ID/Passport/Driving License/Aadhaar Card
• A copy of certified bank statements of the last six months
• Business Proof documents:
  Trade License/Sales Tax Certificate/Sole Proprietorship Declaration/ Partnership Deed/Income Tax Returns along with computation for the last two years/Profit and Loss Statement and Balance Sheet for the last two years

Ans.
We offer MSME loans with quick turnaround time and personalized loan terms.

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There is no difference. MSME stands for micro, small and medium enterprises whereas SME stands for small and medium enterprises. MSME loans are sometimes termed as SME loans.

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If all your documents are in order, we offer a turnaround time of 1 to 3 working days.

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You need proof of business registration, 12-month bank statements, PAN card details, GST and IT filings, and KYC info in digital format.

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Your credit rating and the financial health of your business i.e. revenues and profit margins are a deciding factor in determining the loan amount. You can increase it by improving the credit rating through the settlement of sundry debts and optimizing operating expenses.

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You can diversify the use of MSME loan funds, utilizing them for working capital optimization, inventory management and purchase of equipment.

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We charge a processing fee of 1-2% depending on your loan amount. There are no pre-closure charges for MSME loans by Indian Loan Bazaar.

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You can renew your loan for the same sanctioned amount by paying the processing fee (2% of the principal amount).

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The minimum loan amount offered is Rs. 50,000 and the maximum loan amount depends on the business requirements and credit score, financial history and repayment capacity of the applicant.

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The interest rate offered under government loan schemes and offered by banks starts from
8.40% per annum and can exceed up to 24% per annum.

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Yes, you can foreclose your loan account by paying foreclosure fees to the respective bank or NBFC.

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The repayment tenure of SME loans ranges between 12 months to 120 months.

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Interest rates offered by SMEs could be fixed or floating depending on the bank and
NBFC.

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No, you are not required to submit any collateral or security as SME loans are unsecured loans and even a third-party guarantee is not required.

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The turnover limit for MSME is ₹ 5 Cr for micro enterprise, ₹ 5 Cr to ₹ 75 Cr for small enterprise, and for medium enterprise it is ₹ 7.50 Cr to ₹ 250 Cr.

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Various banks provide MSME loans. Some of the top lenders of MSME loans are SBI, Bank of Baroda, Bajaj Finserv and Tata Capital.

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Both banks and NBFCs offer MSME loans. You can get an MSME loan by either applying online or by visiting the lender. However, meeting eligibility and document requirements is necessary.