Tuesday, 29 December 2020

MSMES - LOANS- PROCEDURES- BANKS- OFFERING LOANS -INTEREST RATES- DOCUMENT REQUIRED FOR MSME REGISTRATION AND LOANS

 

                                     LOANS UNDER MSMEs

Introduction:

After the introduction of MSMEs scheme many people enjoying and satisfying their dream of starting the small scale businesses and also getting loans through various sectors both from government and private banks. Here we discuss about the loan process under MSMEs scheme and process of obtaining loan.

MSME LOAN SCHEMES:

There are many schemes which are introduced under MSME with a wide concept of helping the people of the nation to make economically strong and to build their industrial desire.

The loan scheme as follows:

1.       MSME Loans from Banks and NBFCs

2.      MUDRA loan

3.      CGTMSE (credit guarantee funds trust for micro and small enterprises)

4.       PMEGPN(prime minister’s employment generation program)

This article explains the loans under MSME offer at various Banks and forums and this information are based on the update dated 28th June of 2020.

The below classification table explains the boosters offered from other sources to MSME

1.      Collateral free loans  

2.      MSME loans

3.      Moratorium period

4.      Manufacturing and services

5.      Repayment tenure

6.      Credit

7.      For loans up to Rs. 3 lakh

8.      20,000 crore loan

9.      Loan 10,000 rupees

1.      To MSME

2.      Worth of Rs. 3 lakh crore

3.      Offered for 12 months

4.      Considered as same entities

5.      48 months

6.      100% guarantee

7.      Relief of 2% in interest rate

8.      For MSMEs

9.      Offered for pedestrian owners

 

LOANS FROM BANKS AND NBFCS (NON- BANKING FINANCIAL COMPANIES):

Apart from government sectors there are many private sectors banks and NBFCs providing MSME loans at very adaptive interest rates.

LENDINGKART FINANCE 2020:

The information provided regarding loan may change and it is solely depend on the bank, RBI and based on your business and turnover.

1.      INTEREST RATE –

2.      MAX. LOAN AMOUNT

3.      MIN. ,LOAN AMOUNT

4.      PROCESSING FEE-

5.      REPAYMENT TENURE

6.      LOAN SANCTIONING TIME-

7.      SECURITY –

8.      PRE- PAYMENT CHARGES-

18% ONWARDS

2 CRORE

50,000

2% OF THE LOAN AMOUNT

36 MONTHS

WITHIN 3 WORKING DAYS

 

NOT REQUIRED

NIL

 

2. MUDRA LOAN FROM SBI-2020

 The information provided regarding loan may change and it is solely depend on the bank, RBI and based on your business and turnover.

1.      INTEREST RATE –

 

2.      MAX. LOAN AMOUNT

 

3.      PROCESSING FEE-

4.      REPAYMENT TENURE

 

5.      BUSINESS EXISTENCE-

 

 

6.      BANK ACCOUNT HISTORY–

 

9.75% ONWARDS

 

20 CRORE, can be exceed as per the needs and requirements.

2% OF THE LOAN AMOUNT

120 months

 

WITHIN 3 WORKING DAYS

Min. 5 YEARS  in same locality/ area

 

Current account holder for at least 2 years

 

 

BUSINESS LOANS FROM HDFC BANK 2020

1.      Rack interest rate –

 

2.      Max. Loan amount

 

3.      Processing fee-

       

4.      Overdue EMI interest

5.      Pre - payment charges

6.      Collateral/ security

15% ONWARDS

 

50 LAKH can be exceeds as per the needs and requirements.

2.50% OF THE LOAN AMOUNT (min. rs.2359 and max Rs. 88,500)

2% pm

Nil until repayment of 6 EMIs

Not required

 

MSME LOANS FROM ICICI BANKS 2020

1.      INTEREST RATE

15%

2.      LOAN OFFERED TO

 

Public ltd companies, partnership firms, sole proprietorship firms, private limited companies.

3.      LOAN AMOUNT

2 crore

 

4.      CASH CREDIT

Feature available

 

5.      SECURITY

Not required

Eligible areas of business micro small enterprise, excluding traders

 

CGTMSE(credit guarantee funds trust for micro and small enterprises)

·         This trust promotes a relief and strong credit for the MSMEs

·         Loan can be given without any third party security.

·         Loan is sanctioned by MLI ( member lending institution)

·         This covers both new and existing MSME max amount upto 2 crore

·         It provides rehabilitation assistance to the units which are in dilapidated condition with max amount is 1 crore.

ELIGIBILITY FOR CGTMSE SCHEME

·         Institutions listed below are eligible for this scheme,

i)                    RRB’S

ii)                  Scheduled commercial banks

iii)                NSIC

iv)                NEDFi

v)                  SIDBI

·          Trust guarantees 75% of defaulted principal amount to all categories and 85% for for selected category.

·         Max. guarantee cap is Rs.62.50 lakh/65 lakh for credit facilities upto 50 lakh

·         Penal interest, commitment charge and service charge including levy/expenses are not covered under this scheme.

·         Small and micro enterprises owned by women are also guaranteed cover of 80% and eligible for Rs 40lakhs of credit eligibility.

·         Retail trade, educational institutions, agriculture, training institutions, self-help groups are not eligible for guarantee cover by this scheme.

PMEGP (prime minister’s employment generation program)

·          It is considered as credit linked subsidy program

·         This program is integrated by other two schemes namely

i)                    PMRY ( Prathan Mantra Rozgar Yojana)

ii)                  REGP (Rural Employment Generation Program)

·         This schemes are helping the educate youth to acquire employment.

·         The beneficiary of this scheme needs to invest 5-10% of the project cost in which government grants 15-35% as subsidy for the project.

                   SUBSIDY AND FUNDING UNDER PMEGP

BENEFICIARY  

CATEGORIES          

BENEFICIARY’S SHARE (of total project)

SUBSIDY RATE (from govt.)-URBAN

SUBSIDY RATE (from govt.) RURAL

GENERAL    

10%

15%

25%

SPECIAL

5%

25%

35%

         

CRITERIA

1.      Age: 18yrs

2.      Qualification: 8th passed for individuals

3.      Part of SHG

4.      Society registered under Society Registration Act 1860

5.      Production of co-operative societies

6.      Charitable trusts

 

     Documents required for msme loan:

1.   


2. 


3.



4.


5.


6.


7.

8.


9.


10.


11.


12.

Duly filled Application Form

Identity proof: Passport, Driving License, Pan card, Voter Id

Residence proof: Passport, Lease Agreement, Trade License, Telephone and

Electricity Bills, Ration Card and Sales Tax Certificate

Age proof: Passport, Voter Id, Photo, Pan Card

Last 12 month bank statement

Business registration proof

Proprietors Pan Card  Copy

Company Pan Card Copy

Partnership Deed Copy

P&L and Balance Sheet Copy Of Last 2 Years

Sales Tax Documents

Municipal Tax Documents.

 

 

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