Diwali of 2018 proved to be really dhamakedaar for MSME’s in the country with regards to MSME loan allowances and more!

“Since a few of weeks various ministries of the India government came together to formulate these decisions. After all the inspection and checks, I want to inform the country about these 12 historical decisions. In the times of globalization, these 12 decisions will start a new chapter for the MSMEs”

– Narendra Modi, Prime Minister of India (translated from Hindi, Source: Economic Times)

The MSME sector was hit hard when demonization and GST laws were rolled out in the country. In order to provide an empathizing shoulder to the sector, the Indian government introduced these 12 decisions charted below: msme loans 12 decisions

Gesturing the measures as a Diwali gift PM says that, the MSMEs will see new heights and will be the biggest employment generator following the agriculture industry. However, these loans range from Rs. 10,00,000 to Rs. 1 Cr with a starting interest rate of 8%. The MSME loans are a part of the Credit Guarantee Fund Trust for Micro & Small Enterprises (CGTMSE) and collateral coverage is not compulsory.

The Finance Minister launched a fast track portal for the MSME loan application. This portal helps MSMEs to secure loans faster and in an extremely secure way. Here’s how the portal works:

msme loan step by step processImage Source: PSB Loans in 59 Minutes

Documents Required For The MSME Loan Application

Please keep the following documents in a soft copy form ready for the MSME loan application:

    • Income tax returns in XML format or PAN card details
    • Incorporation date
    • Bank statements (last 6 months) or net banking credentials
  • Basic company ownership details: director or owner details

The 10 Steps To Get MSME Loan Approved In 59 Minutes

1.Provide all essential details and register

msme loan application
Image Source: Economic Times

2. Confirm answers to the four simple questions

msme loan process
Image Source: Economic Times

3. Enter your GST details

loans for msme
Image Source: Economic Times

4. Fill your income tax information

how to get msme loans
Image Source: Economic Times

5. Provide bank account details

msme loan procedure
Image Source: Economic Times

6. Give the company director’s information

msme loan format
Image Source: Economic Times

7. Select the bank you want to apply for the loan

msme loan details
Image Source: Economic Times

8. Select your preferred bank

msme loan
Image Source: Economic Times

9. Pay the nominal convenience fee

msme loan steps
Image Source: Economic Times

10. The process is complete. Download your approval letter

msme loan approval process
Image Source: Economic Times

The MSME sector comprises of a huge network of over 63 million units and facilitates work to 111 million people. It contributes close to 30% to the GDP. It accounts for approximately 40% total exports and 45% manufacturing output. This growth program will run for 100 days across the country. It is expected to provide a boost of fresh air in the sector in coordination to the efforts put in for its upliftment. The progress of the program will be under the constant surveillance of the senior officials.

[tweet=”“MSME sector is of vital importance to the Indian economy. This sector’s energy and dynamism is noteworthy” – PM tweeted. “]

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