Here’s how MSMEs can apply for loans from SBI, ICICI Bank and others
- The government has revised the definition of MSMEs and announced various measures to help the companies.
- The measures include collateral-free loans worth ₹3 lakh crore for MSMEs from Banks and NBFCs.
The government had also recently revised the definition of MSMEs by increasing the threshold limit for investment in these units. The government had announced an emergency credit line of ₹3 lakh crore for MSMEs from Banks and NBFCs.
Finance Minister Nirmala Sitharaman’s office in a tweet mentioned that the public sector banks (PSBs) have sanctioned loans worth ₹3,200 crore on June 1, 2020.
On a single day 1 June ‘20, #PSBs have sanctioned collateral-free loans worth Rs 3,200 crore through the Emergency… https://t.co/lsKUCrhqIP— NSitharamanOffice (@nsitharamanoffc) 1591005755000
The loans availed by non-banking financial companies (NBFCs) as part of the government’s initiative are not required to pay any guarantee and no collateral is required.
The tenure has been fixed at four years, with a moratorium of 12 months on the principal payment.
Banks that provide
- State Bank of India
- ICICI Bank
- HDFC Bank
- Union Bank of India
- Indian Bank
- Central Bank of India
- Allahabad Bank
- Oriental Bank of Commerce
- Bajaj FinServ
- Duly filled application form.
- Residence proof: Passport, telephone bill, electricity bill, ration card, lease agreement, trade license and sales tax certificate.
- Identity proof: Passport, PAN, voter ID card and driving license.
- Age proof: Passport, PAN, voter ID card.
- Business registration proof.
- Bank statement.
- Partnership deed.
- Company PAN card.
- P&L and Balance Sheet of the last 2 years.
- Sales tax documents.
- Municipal tax documents.
- Visit the Udyog Aadhaar website and register your MSME.
- Enter your Aadhaar number, name and click on ‘Validate and generate OTP’.
- Enter the OTP and click on ‘Validate’,
- Enter the required details in the application form and click on ‘Submit’.
- You will now receive an OTP on your mobile number. Enter the OTP and click on ‘Final Submit’.
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