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What is small scale industry? How to get loan for small scale industry?

What is small scale industry? How to get loan for small scale industry?


How to get small scale industry loan. Small Industries Loan Application Form 2022 | Laghu Udyog Loan Online Registration | How to Apply Small Scale Loan Online 2022 | Online Small Industries Loan


What is small scale industry? How to get loan for small scale industry? This question often remains in the mind of businessmen starting small scale industries. Friends, let us tell you that those citizens of India who want to start their own small scale employment or business but they do not have enough capital to start their own small scale industry. So in such a situation Prime Minister Narendra Modi has started Pradhan Mantri Laghu Udyog Yojana 2022, under this scheme the traders who start small scale industries will be given loan at the right rate of interest. So let's know how to apply for small scale loan online.


How to get loan for small scale industry

What is a small scale industry loan

Friends, as you know, in today's time, most of the educated people are sitting unemployed, neither they have a job nor any employment. In such a situation, if they want to start their own employment or small scale industry, then they do not have enough capital to start their own business. Or if it is seen from the other side, in today's time, the corona epidemic is spread everywhere, there is a lockdown everywhere. In such a situation, people's business is closed, they do not have enough money to start their own business.


Prime Minister Narendra Modi always encourages self-employment scheme, he says that the people of our India should start their own business and employment without depending on foreign goods. That's why recently many mobile apps of China were closed and here Indian citizens got an opportunity to start a new industry, work business according to their working capacity.


But now again the same thing comes that they do not have that much capital, to start their own employment, so friends, keeping all these things in mind, Prime Minister Narendra Modi has started the Pradhan Mantri Laghu Udyog Yojana, under this scheme Those people who want to start their own employment or small scale industry but they do not have money, then under the Small Scale Industries Scheme, they will be given a loan at a reasonable rate of interest so that they can start their own employment business, small scale industry and To become self-sufficient. So let's know how to get small scale industry loan.


Benefits of taking small scale industry loan 2022 online

  • The biggest advantage of taking Laghu Udyog Loan online is that you can easily take a small scale industry loan in a few minutes sitting at home.

  • On the other hand, if you want to take a small scale loan offline, then you have to face a lot of difficulties, you get it after a lot of running, time, and submitting many documents.

  • To take a small scale industry loan, you do not have to go to the bank and line up, rather you can comfortably take a small scale industry loan online from the comfort of your home.

  • You can easily choose a bank of your choice from the comfort of your home and avail a small scale industry loan online from there.



Documents required for Laghu Udyog Loan Online

  • industry startup details

  • bank passbook

  • pan card

  • Aadhar card

  • register mobile number

  • E mail ID

  • Passport size photograph of the applicant

  • address proof



How to Apply Small Scale Loan 2022 Online

1. First of all you have to go to the official website of Small Scale Loan.


2. Then you have to click on Apply Now.


3. After filling your Full Name, Email Address, Mobile Number, Otp, everything in this form, click on Proceed.


4. Here you create your new password, then click on Proceed.


5. After this you have to click on Create New.


6. After this you have to click on Proceed by clicking on Business.


7. In this form, fill your Profile Name, Business PAN and click on Proceed.


8. After this, a form will open in front of you, in which you have to fill all the information asked properly.


9. When your Laghu Udyog Loan Online will be approved, a notification will come on your mobile number, after that you have to choose your bank accordingly.


10. After selecting the bank, you will have to complete the necessary process related to the bank.


11. After getting the Small Industries Loan Online 2022 approved, you will also have to give GST related information to the bank officer.


12. Along with this, you will also have to give other information to the bank, such as Tax Information, KYC form, Identity Card, Aadhaar Card, Passport or Pin Card.


13. Along with this the bank will also have to give its caste certificate.


14. Friends, in this way your process of applying Small Industries Loan Online kaise kare is completed.




Government of India schemes related to small scale industry loan 2022

To promote self-employment, along with the Pradhan Mantri Laghu Udyog Yojana, the Government of India has also started other small scale industry schemes. Under which other types of benefits or subsidies will be provided to entrepreneurs starting small scale industries or self-employment. Credit Link Capital Subsidy Scheme, Pradhan Mantri Mudra Yojana, MSMI, Pradhan Mantri Employment Generation Program and Small Scale Credit Card Scheme, Pradhan Mantri Rozgar Yojana, all these schemes have been started to promote small scale industries. So friends, if you also want to start a small scale industry, then you can easily apply for a small scale industry loan online.


MSME loan

A Micro, Small and Medium Enterprise (MSME) loan is a type of business loan offered by banks / lending institutions to individuals, SMEs, MSMEs and start-up enterprises. MSME loans are used by business owners and enterprises to meet their working capital requirements, manage cash flow or expand their business, etc. Many lending institutions/banks provide SME and MSME loans to their customers without collateral or any security. In this article we will talk about how to take MSME loan or how you can get MSME loan? Following are the MSME loan schemes and other related information.



MSME Loan – Features, Fees and Interest Rates

Rate of interest

depends on business requirements

loan amount

There is no minimum limit on the loan amount, while the maximum loan amount is up to ₹ 1 crore which can be increased as per the business requirements

payment term

From 12 Months – 5 Years

collateral

Not required for unsecured business loan

processing fee

0 to 4% of the loan amount

foreclosure fees

0 to 5% of the outstanding loan amount

part payment fees

from 0 to 4 %

loan cancellation fee

varies from bank to bank

subsidy

Offered by select loan institutions

credit facilities

Working Capital Loan, Bill Discounting, Overdraft, Cash Credit, Letter of Credit, Bill Purchase, Merchant of Cash Advance etc.


Note: All interest rates, fees and charges mentioned above are subject to change and at the sole discretion of the Bank / NBFC and RBI. GST & Service will be levied extra on the above charges.




Purpose of MSME loan

  • Meet working capital requirements

  • to grow business

  • to manage cash flow

  • To buy new equipment or machinery

  • For purchase of raw materials, vehicles, equipment, etc.

  • to stock inventory

  • For payment of rent, payment of salary etc.



Types of MSME Loans Under Government Schemes

SME/ MSME loan schemes launched under the Ministry of MSME are offered by various banks and NBFCs to Micro, Small and Medium Enterprises (MSMEs). Given below are the popular MSME loan schemes offered by banks and launched by the Government of India:

  • CGTMSE: Credit Guarantee Fund Trust for Micro and Small Enterprises

  • CLSS: Credit Linked Capital Subsidy Scheme

  • credit guarantee scheme

  • Mudra Loan Scheme under PMMY

  • National Small Industries Corporation (NSIC) Subsidy

  • PMEGP: Prime Minister's Employment Generation Program

  • PMRY: Prime Minister's Employment Scheme

  • PSB Loan in 59 Minutes

  • Standup India

  • startup india



MSME Business Loan Without Collateral / Security 

MSME Business Loan is availed by customers to meet their working capital requirements and to expand their business. MSME loans for new business that are offered by banks are mostly unsecured business loans, as no collateral / security is taken from the borrower against this type of loan.


Collateral Free MSME Loans without collateral / security are offered at competitive interest rates that can be easily repaid as EMIs. Collateral/ security-free loans are generally short-term loans that can be repaid within a period of 12 months, and can go up to 5 years depending on the business requirements.


The loan amount will depend on the profile, repayment capacity and financial stability of the applicant. Most of the banks like private and public sector banks, Non-Banking Finance Companies (NBFCs), Regional Rural Banks (RRBs), Small Finance Banks (SFBs) and Micro Finance Institutions (MFIs) offer MSME loans without collateral/security.



Eligibility Criteria for MSME Loan / SME Business Loan

  • Age: Minimum 18 Years and Maximum 70 Years.

  • Eligible for the loan are: Individuals, SMEs, MSMEs, businesses, women entrepreneurs, self-employed professionals, people falling under SC / ST / OBC category, traders, artisans, retail traders, businesses engaged in service and manufacturing sectors.

  • Eligible Companies: Private or Public Limited, Sole Proprietorship, Partnership Firm, Limited Liability Partnership.

  • Business Turnover: ₹10 Lakh for current business, depending on the bank.

  • Must have good payment record and financial stability.

  • CIBIL score above 750.

  • Should not have defaulted with any loan institution.



Documents Required for MSME Loan

  • business plan

  • Application form with passport size photograph

  • KYC documents of the applicant and co-applicants including Passport, Aadhaar Card, Voter ID, Driving License, PAN Card and utility bills (telephone, electricity)

  • Amount of income

  • Proof of Business Address

  • Bank statement of last 6 months

  • Copy of license, certificate and registration if required

  • Proof of belonging to SC/ST or OBC, if applicable

  • Any other document required by the loan institution



How to apply for MSME loan?

To apply for a business loan, applicants can check and compare various loan options to suit their business needs. Follow the steps given below to apply for a business loan by clicking on 'Business Loans' on the homepage of the website.


  • Fill in all the required details like loan amount required, employment status, annual sales or turnover, city of residence, number of years in the current business, collateral/security type and mobile number

  • Tick ​​the box below to agree to the terms and click on “Unlock Best Offers” next

  • Apart from this, you have to enter details like Company Type, Nature of Business, Industry Type, Net Annual Profit, Bank Account, Any Existing EMI, Full Name, Gender, Residence Pin Code, PAN Card No., Date of Birth and Email ID

  • After submitting all the details, a representative of the bank will get in touch with you for loan formalities

  • Once your loan application is approved, the sanctioned loan amount will be transferred to your bank account within stipulated working days.


MSME / SME loan interest rates offered by various private and public sector banks, NBFCs, Small Finance Bank SFBs, Regional Rural Banks (RRBs) and Micro Finance Institutions (MFIs), nature of business and repayment tenure, profile of the applicant, Based on various factors like payment record, repayment capacity, loan amount.



MSME CONTACT DETAILS

Toll-Free No: 1800-123-7376

For General Enquiries: 011-23063288/011-23063643


How to apply business loan for small scale industries online in 59 minutes

MSME which is included under the central government, helps people in setting up new industries. Small scale industries come under MSME. The present central government has recently launched a new portal, under which small industries will be able to get loans up to 1 crore in 59 minutes. This is a great effort, earlier loan approval used to take months, now this work will be completed in just 59 minutes.


For this, the person taking the loan will have to apply online and how will he work and what will be the conditions of this new scheme? Read this in detail.


1

Plan

MSME loan in just 59 minutes

2

announced

Finance Minister Arun Jaitley

3

dated

2018

4

Main beneficiaries of the scheme

small scale business owner

5

Online portal

www.psbloansin59minutes.com

6

loan amount

1 crore max Rs.



What are the MSME loan details? [MSME Loan Information]

  1. Loan amount: Within this scheme, the beneficiary can register for a maximum loan of up to 1 crore. This loan will be given only for small scale industries.


  1. Fixed interest rate: The government has not yet given any clear statement about the interest, but 2% GST on this loan will have to be borne by the borrower.


  1. Fixed loan period: The government or the MSME department has not set any guidelines regarding the loan repayment period.



What are the benefits of this scheme? [Benefits Of The Scheme]

  1. The main feature of this loan is that this loan will be available in just 59 minutes, which means that all the proceedings for the loan will take less than 1 hour.

  2. Earlier, for the process of offline loan, many papers had to be submitted to the bank or other institutions, which used to spend a lot of time, but in this loan for MSME, all the proceedings will be done without papers.

  3. Under this scheme, there will be no need to go to the bank to register for the loan, for this an online portal has been launched, under which all the proceedings will be done sitting at home.

  4. This portal is designed in such a way that the information entered by you will be verified by this portal within few minutes and you will be informed on the spot whether you are eligible for the loan or not. Earlier it used to take several days for this type of process, but this initiative of Modi ji has made this loan process easy.

  5. After this approval, you can choose your preferred bank from the given bank list and get the loan from that bank. Further action will be taken by the bank partner.



Who all can apply for this loan? [Eligibility Criteria for Small Business Loan]

All those industries, which come under the terms of MSME (Department of Micro Small and Medium Enterprises), can apply for this loan. Apart from this, the government has not clearly fixed any guideline yet.



Which documents are important for getting this loan? [Documents List]

  1. Under this, bank information will have to be given to apply, which will also include information about six months' transactions. This is important information.

  2. After joining this scheme, you will have to add your IT account and GST account in it, so you must have all these documents related to the tax section.

  3. Along with this form the applicant has to get the KYC form scanned and submitted online.



How to apply for loan? [Application Form and How to Apply Online?]


  1. To take advantage of this scheme, one has to login to its official portal https://www.psbloansin59com/signup. This is the main feature of this scheme, that one will not have to go anywhere for it.

  2. As soon as you open the site, you will get the sign up page, where you will have to fill all the information asked correctly. In this, after filling your name, ID, mobile number, an OTP code will be sent through message on your mobile number.

  3. If you do not get the OTP, then you can click on Resend, which will give you the OTP.

  4. After receiving the OTP, in the next block, you will have to fill that OTP very carefully and click on the link “Proceed” given below, which will complete your sign up process and create your account.

  5. Now if you want, you can change your password further.

  6. After this process, you will get the link “Need Fund For Existing/New Business”, on clicking which you will go to the portal from where you have to fill the loan form.

  7. If your process till now is correct from all sides, then you will get the message of loan approval at the same time.

  8. After loan approval, you have to choose the bank through which you want to take the loan. After that further processing will be done by the bank.

  9. After this loan approval, you will need to link your GST, IT department with it, so that you are covered under this scheme, the latter can be confirmed.

  10. After this, you will also have to give all the bank related information, so that the loan can be transferred to your account.

  11. This application process is only for new applicants, those who have already joined, they do not have to apply in this way, their ID and mobile number information is sufficient for their account information.



Which are the banks included under this scheme? [List of Bank in MSME Small Business Loan]

For this scheme, the central government has given the task to the Small Industries Development Bank of India, along with this the names of 5 public sector banks have also been included. But the applicant can choose his bank from this bank list.

  1. Small Industries Development Bank of India

  2. State Bank Of India

  3. Bank of Baroda

  4. Punjab National Bank

  5. Indian Bank

  6. Vijaya Bank

  7. Allahabad Bank

  8. Andhra Bank

  9. Bank of India

  10. Bank Of Maharashtra

  11. central bank

  12. IDBI Bank

  13. Syndicate Bank

  14. UCO Bank

  15. Union Bank

  16. Oriental Bank


etc. Banks are included. Many other banks also want to join this scheme. As this list grows, we will keep adding information to this article. Stay connected with us.


Related Questions (FAQs)

Question. Is MSME registration voluntary or mandatory?

Answer: MSME registration is completely voluntary and the benefits offered under it are availed by the businesses.


Question. Is credit score important for MSME in getting MSME loan?

Answer: Yes, having a good credit score is always beneficial for an MSME.


Question. What is the validity of Provisional Registration Certificate (PRC)?

Answer: The validity of Provisional Registration Certificate (PRC) is 5 years.


Question. What support is available for technology upgrades?

Answer: The Government of India and the Ministry of MSME run the Credit Linked Capital Subsidy Scheme (CLCSS) which assists MSME enterprises in the country for technology upgradation. Provides 15% capital subsidy to eligible MSME enterprises to improve and upgrade technology as per industry standards. The maximum subsidy that can be availed by an enterprise is to the extent of Rs.15 lakhs. To avail these services, individuals may approach the nearest nodal agency / financial institution.


Question. What is the MSME loan interest rate offered by SBI?

Answer: The MSME loan interest rate offered by SBI is 8.30%.


Question. How much is the MSME registration fee?

Answer: MSME registration is free and getting MSME certificate is also absolutely free.


Question. Is there any validity of MSME certificate?

Answer: The validity of MSME certificate is 5 years.


Question. What is the advantage of the tool-room provided by the Ministry?

Answer: Ministry of MSME provides hi-tech tool-room to MSME enterprises so that their products and services can carve a niche for themselves in the market. The Tool-room initiative of the Ministry of MSME also provides trained artisans etc. to the enterprise.


Question. Documents required for MSME loan

Answer:

  1. Aadhar card

  2. Any one identity proof issued by the government

  3. Any one proof of residence identity issued by the government

  4. age proof

  5. pan card

  6. Bank statement of last 12 months

  7. business registration certificate

  8. If the business is already running, then copy of the balance sheet of profit and loss of the last 2 years


Question. Which businesses come under MSME?

Answer: MSME Industry List 2021

  • Flour Mill

  • toilet soap manufacturing

  • tomato sauce making

  • Roasted Rice Flakes

  • Banana Fiber Extraction And Weaving

  • computer assembling

  • Light Engineering (Nuts, Bolts, Washers, Rivets etc.)

  • Metal-based industries: agricultural implements, cutlery and hand tools



conclusion

Friends, in this article, we have tried to explain in full detail about how to apply for small scale industry loan online. The central government has solved a huge dilemma. In today's time getting loan is more difficult than doing business. Many loan schemes have been brought by the center, but this MSME loan scheme will provide loan to the applicant in 1 hour without any hassle. This will increase employment opportunities in the country and will also increase the courage of people to do their own business. By reading this article, you can easily take a loan sitting at home, if you have any question related to this article, you can ask by commenting.


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