An MSME business loan at a competitive interest rate can help in growing your business fast. Now there are banks and financial institutes like Aavas which offer easy small business loans. The online process to apply for an MSME loan for business in 2021 is simple but before applying it is always recommended to check your MSME new business loan eligibility. You can use the online Loan Eligibility Calculator to find out your loan eligibility status and apply online as well. Because once you know the loan amount then whether you are starting a new business or expanding your existing business, you will be able to do a better planning.
Features of Aavas MSME business loan
To expand my Kurti business I needed some cash and I approached Aavas for MSME business loan. The sanctioned loan amount has not only helped me in expanding my business but also brought financial stability to my life. The loan process was simple and convenient
Moni Ben from GujaratMSME loan still remains one of the tried and tested options to get the funds to expand your business in 2021. It even takes your MSME unit to the next level.
In fact, the online process has also made it remarkably simple to apply for MSME loans
Even during this pandemic, one can apply for the MSME loan from the safety and comfort of one’s home. The online loan process, apart from being convenient, is faster too. You will be amazed with the simplicity carried by the entire process. Just login to have a 'white glove' experience!
Why Should You Take MSME business loan?
MSME business loan will empower you to grow and take your MSME venture to the next level. In fact, there are various government schemes as well, which have an aim to encourage small businesses to grow at a rapid pace. And if you can get MSME loan with these available government schemes then you will fast-track your small venture.
What are the documents required for MSME loan?
The following documents are required for an MSME loan for business-
How to apply for an SME/MSME loan?
Fill out your details on "Apply for MSME Loan" form. You are done. Our representatives will get in touch with you for your MSME loan requirement, and it will be disbursed soon with minimum paperwork involved.
How long does it take to get an MSME business loan?
If your documents and profile is eligible, then the minimum time to get an MSME loan for business is 7-10 days to process your application. But in cases of applications asking for a huge amount of money may take more than the usual clearance time.
Is credit score (CIBIL) important in getting MSME business loan?
Yes, credit score/CIBIL score is important for getting an MSME loan as a good CIBIL score let the lenders take faster decisions for approval of the applicant's loan request. As the company's CIBIL rank is near 1, the better are the chances of getting approval for the loan.
How much MSME loan for business can I get?
An applicant can get a loan of 50,000- 10 lakhs depending on the size of the business. Different institutions have a different capacity of providing different amounts to the various applicants. You need to mention the required amount at the time of filling up the application form.
What determine my MSME loan limit, and how can I increase it?
Your credit score, your income, your age and the nature of your work are the prime factors in determining the size of your loan. Settling your previous debts and improving your credit score may help you immensely in building a better credit score.
What is the lowest rate of interest for MSME loans for new business?
The lowest rate of interest for MSME loans varies from bank to bank or financial institution. It is recommended that you check for a low interest rate while applying for MSME loan.
Can I get MSME Loan for my warehouse?
Yes, if you are ready to give the self-occupied property evidence. Self-occupied residence property mortgage is also required.
Can I get an MSME Loan for GPA registered property and how much loan amount can I avail?
Yes, the loan amount will depend on the valuation of the property. You need Self Occupied Residential Property (SORP) for the same.
Is it mandatory to mortgage commercial property for an MSME loan or, can residential property also be considered as mortgage?
Yes, residential property mortgage is a must even if you are ready to give commercial property as additional collateral.
Can I also get MSME Loan on industrial property?
Yes, in case the customer is mortgaging his residential property too for rechecking.
Can I get an MSME loan for commercial property construction?
Yes, if evidence of self-occupied and self-commercial use is specified.
As a customer, if I have a GST, then is it mandatory to take Udyam Adhar License?
Yes, it must be taken even if the customer has GST.
18-Jan-2021 |MSME
If knowledge is power then constantly updating your knowledge is a superpower. Whether it's is personal development or scaling up your business, the more aware you are the better it is. And one form of learning is to keep yourself updated with the latest change in the various rules and regulations. One such rule change has been witnessed in the definition of MSME units and now we have revised definitions of MSME. Read on to find out how you can make the most of these changes to expedite the growth of your business in 2021.
Well if you run a micro or a small or a medium enterprise then you need to be aware of the latest revised definitions of MSME. Knowing these will help you to grow your business in 2021.
Earlier, the MSMEs were defined on the basis of investments that have been put into them, however, now the revised definitions will also include the turnover of the unit as well, and rightly so.
What are Micro Units
Earlier the criteria was solely on an investment basis. Like:
1. An investment up to Rs 10 lakh for service units
2. An investment up to Rs 25 lakh for manufacturing units.
New Definition Of Micro Units
An MSMEs will now be called a micro-unit if up to one crore, it can be proprietor own money or through MSME business loan, has been invested into it and it has a turnover of less than Rs 5 crore. Unlike earlier now these two aforesaid factors will define a micro unit.
New Definition Of Small units
As for the small units, the investment limit has been doubled from the earlier rupees 5 crore to rupees 10 crore, now besides that it must have a turnover of less than 50 crore. This new definition encompasses all MSMEs, service enterprises included, earlier service enterprises were under-investment of up to Rs 2 crore category.
New Definition Of Medium units
An enterprise that has an investment up to Rs 20 crore along with a turnover of less than Rs 100 crore will now be called a medium unit. Whereas earlier, the investment limit for a medium unit was up to Rs 10 crore and for Service enterprises, the limit was up to Rs 5 crore.
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