Diwali of 2018 proved to be really ‘dhamakedaar’ for MSME’s in the country with regards to MSME loan allowances and more!
“Since a few of weeks various ministries of the India government came together to formulate these decisions. After all the inspection and checks, I want to inform the country about these 12 historical decisions. In the times of globalization, these 12 decisions will start a new chapter for the MSMEs”
– Narendra Modi, Prime Minister of India (translated from Hindi, Source: Economic Times)
The MSME sector was hit hard when demonization and GST laws were rolled out in the country. In order to provide an empathizing shoulder to the sector, the Indian government introduced these 12 decisions charted below:
Gesturing the measures as a Diwali gift PM says that, the MSMEs will see new heights and will be the biggest employment generator following the agriculture industry. However, these loans range from Rs. 10,00,000 to Rs. 1 Cr with a starting interest rate of 8%. The MSME loans are a part of the Credit Guarantee Fund Trust for Micro & Small Enterprises (CGTMSE) and collateral coverage is not compulsory.
The Finance Minister launched a fast track portal for the MSME loan application. This portal helps MSMEs to secure loans faster and in an extremely secure way. Here’s how the portal works:
Documents Required For The MSME Loan Application
Please keep the following documents in a soft copy form ready for the MSME loan application:
- GST Identification number
- Income tax returns in XML format or PAN card details
- Incorporation date
- Bank statements (last 6 months) or net banking credentials
- Basic company ownership details: director or owner details
The 10 Steps To Get MSME Loan Approved In 59 Minutes
1.Provide all essential details and register
2. Confirm answers to the four simple questions
3. Enter your GST details
4. Fill your income tax information
5. Provide bank account details
6. Give the company director’s information
7. Select the bank you want to apply for the loan
8. Select your preferred bank
9. Pay the nominal convenience fee
10. The process is complete. Download your approval letter
The MSME sector comprises of a huge network of over 63 million units and facilitates work to 111 million people. It contributes close to 30% to the GDP. It accounts for approximately 40% total exports and 45% manufacturing output. This growth program will run for 100 days across the country. It is expected to provide a boost of fresh air in the sector in coordination to the efforts put in for its upliftment. The progress of the program will be under the constant surveillance of the senior officials.
“MSME sector is of vital importance to the Indian economy. This sector’s energy and dynamism is noteworthy” - PM tweeted. Click To Tweet
Author: Kinjal Shah
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