What are the features of MSME?

Features of MSMEs

• MSMEs work for the welfare of the workers and artisans.
• MSMEs provide credit limit or funding support to banks.
• They promote the development of entrepreneurship as well as up-gradation of skills by launching specialized training centers for the same.

What is the benefit of MSME loan?

MSME loans come with great benefits for small businesses, like no collateral, fast processing cycle and online account access, that meet the exact needs of small businesses at any stage of their growth.

What are the requirements for MSME loan?

What is the MSME loan eligibility criteria?

• Nationality: Indian.
• Age: 24 to 70. *Age should be 70 at loan maturity.
• Work status:
• Business vintage: Minimum 3.
• CIBIL score: 685 or higher.

How many MSME are there in India?

6.3 crore MSMEs
India has approximately 6.3 crore MSMEs. As per the MSME Ministry data, as of October 21, 2021, the Udyam Registration portal registered 53,33,323 MSMEs, replacing the former process of filing for an Udyog Aadhaar Memorandum (UAM).

What are the disadvantages of MSME?

Cons of MSME Loans

• Piling of interest. The first demerit is the interest amount to be paid.
• Tedious procedure while applying of loans.
• No collateral requirement.
• Processing fees.
• The whole amount is not provided.
• High credit score.

Is ITR required for MSME loan?

General documents required for MSME loans Identity proof: PAN card, Aadhaar card, driving license, passport, voter’s ID, etc. Financial documents: Last two years ITR, audited balance sheets and profit and loss statements, last 6 months’ bank statements, projected turnover, etc.

How much is the subsidy for MSME loan?

This scheme provides an upfront subsidy of 15\% on institutional credit up to Rs. 1 crore (i.e. a subsidy cap of Rs. 15 lakh) for identified sectors/subsectors/ technologies.

Is MSME loan interest free?

The interest rates on MSME loans start at 7.65\% p.a. The loan amount sanctioned ranges from as low as Rs. 50,000 and can go up to a few crores. On the basis of the sanctioned loan amount, the loan repayment tenure can go up to 15 years.