What is MSME loan scheme? How do I get MSME loan to start : The full form of MSME is ‘Micro, Small and Medium Enterprises. Micro, small and medium enterprises have a special role in the economy of any country and they generate a large number of jobs. Some rules have been framed for MSME industries by the Ministry of Micro, Small and Medium Enterprises, Government of India.
Jansa’s name itself suggests that MSME loan scheme is a loan scheme. You must also have heard about this scheme at some time. This is a very profitable scheme for micro, medium and small scale industries present in India. If you also have a micro, small or medium industry, then read this article.
In this article, we will tell you what is the MSME loan scheme, what are its benefits, what are the qualifications, how to register for it, what are the documents required for registration, etc.
What is MSME Loan Scheme ? @ udyogaadhaar.gov.in
MSME enterprises also have an important contribution in India’s economic development. MSME enterprises face many challenges. They do not get loans easily, due to which they are unable to grow their business. But the Government of India has also made certain rules for MSME enterprises and the loans given to MSME businesses are placed under MSME loan scheme and it is called MSME loan.
MSME loans are mostly given to beginning and small business owners. The repayment period of MSME loan varies for everyone and the rate of interest depends mainly on the profile of the applicant, history of business, loan duration and loan amount etc.
Business loan qualifications are not fulfilled by many MSME entrepreneurs. The terms and conditions of the MSME loan have been set by the Government of India and the RBI, which are different from the business loan. MSME loans are called unsecured loans which are given by banks and NBFC if the applicant fulfills the necessary conditions and qualifications.
Benefits of MSME registration
Most banks and financial institutions recognize MSME and 1 to 1.5 percent discount is given in MSME loan as compared to business loan, ie the rate of interest seems to be lower than normal.
MSME businesses are given special subsidies and rebates in electricity and tax by the state government. At the same time, the state government is given special exemption on sales tax and industrial level to MSME businesses and various types of subsidies are provided. Businesses registered in MSME get various types of government licenses and certification quickly and easily.
Documents required for MSME registration
- One of the documents in Aadhaar card, driving license, passport etc. as an identity certificate.
- Copy of PAN card
- Applicant’s passport photo
- If renting industry, then copy of rent
- Ownership deals in property if industry deals or documents of property
- Affidavit means affidavit
- Declaration letter
- Two people as witnesses
How to do MSME Registraion ?
There are two ways to do MSME registration. You can do MSME registration both offline and online. Here we will tell you both ways in turn.
- Fill the necessary information sought in the application form with the department under which you are starting the industry. After that, attach the necessary documents with the application form and register it in the MSME office.
- Before submitting the application and documents, get all the documents certified by a specialist, after that submit the application. You can submit documents and applications to the district industry center in the district where you are starting your business.
- After you submit your application and documents are submitted to the MSME registrar by the District Industries Center where they are verified by the investigator. Once the application is approved, MSME certificate is issued and you are informed via courier and email.
- Online registration can be done through the portal issued by the Government of India.
- Go to http://udyogaadhaar.gov.in/UA/UAM_Registration.aspx link and submit the required information like name, address, Aadhaar number etc. as per the instructions given.
- After this you will get an OTP through your Registered mobile number or email, enter it and submit it by filling the captcha.
- After submitting your registration will be completed and udyog aadhaar will be released. When you start a business you will have to apply for permanent registration. After applying, you will be issued a permanent MSME certificate.
As we have provided you almost all the important information about MSME loan scheme in this article, like what is MSME loan scheme, what is the benefit from it, how to apply for MSME certificate, what are the necessary documents for it. Hope you have liked this article very much and it has given you many important information about MSME loan.