How to Apply for MSME Loan

Micro, Small, and Medium Enterprises (MSMEs) are the backbone of a nation. They play a massive role in a country’s GDP (gross domestic product) growth. They also employ a large part of the population, helping increase employment.

MSMEs are instrumental for the economy, so it is only right that they have easy access to credit.

Governments and banks are, hence, always willing to provide MSMEs with easy loans. MSME business loans are easily accessible by business owners and entrepreneurs, helping MSMEs fund working capital requirements, such as managing day-to-day operations, buying new goods, purchasing new equipment, paying employees' salaries, and expanding the firm.

For instance, IDFC FIRST Bank's Current Account and loans for MSMEs can help you meet business growth and liquidity needs with ease. This account along with MSME loans can also be used for starting a new business division or venture out. IDFC FIRST Bank MSME Loans are offered at a competitive rate of interest and loan amounts can vary from Rs 40 lacs to a few crores.

What is the MSME registration process?
 

Here is how you can register for an MSME on the Government portal –

• Visit the official Government portal (https://udyamregistration.gov.in/Government-India/Ministry-MSME-registration.htm)
• Click on 'New Entrepreneurs’ if you are not yet enrolled as an MSME
• Enter your name and Aadhaar number before clicking 'Validate and Generate OTP'
• Your mobile phone number will receive a one-time password (OTP). To verify, enter the OTP
• Provide your PAN details and the organisation to which you belong
• Enter your personal information and information about the industry or factory where you work

Government changes made to MSME loan scheme

While MSME still stands for Micro, Small, and Medium Enterprises, the Indian Government updated its meaning in May 2020. The Government of India broadened the meaning of MSME to help more businesses benefit from MSME loan schemes. The new criteria for MSMEs are as follows –

• Investment has been replaced with Investment and Annual Turnover as the MSME classification requirement
• The criteria for classifying MSMEs have now been made standard for manufacturing and services enterprises

How to get an MSME loan with IDFC FIRST Bank?
 

Here’s how you can apply for an MSME loan -

• Click here to know more about the loans offered and start your application after choosing the appropriate product for yourself, with “Apply Now”
• Fill in the requisite fields on your screen. Enter your personal details, income details, and company information
• Attach the documents as required, including personal, business, income proof, and photographs. Click on submit
• After submission, bank’s relationship manager will get in touch with you to help complete your MSME loan application process
• Once the loan has been approved, the funds will be transferred to your business bank account within the specified working days

IDFC FIRST Bank’s Current Account and Loans for MSMEs – the game changer
 

MSME loans are beneficial for businesses that want to expand their reach. From buying new machinery to increasing workforce, MSME loans can be used for many reasons. With doorstep collection policy, MSME loans from IDFC FIRST Bank are an excellent solution to fulfil your business needs.

You can also open the IDFC FIRST Bank’s Current Account online to grow business wealth, meet emergency needs, and carry out transactions with ease. With this account –

• All balances above Rs 2 lakhs (or the limit you set above this amount) are automatically transferred to your linked fixed deposit account (FD) under the BRAVO facility.  To meet fund requirements, the funds are automatically transferred from the FD, thereby helping you with easy finance management. Furthermore, there is no penalty on FD breakage, and you can earn up to 7.5% interest p.a. on the FD

That’s not all. You also need not pay any charges on commonly used banking services such as –

• Third-party cash deposits and withdrawals
• Demand draft and pay order charges
• Debit card issuance
• Standing instructions
• UPI QR and QR standee
• Cash deposits at ATMs
• National Electronics Funds Transfer (NEFT), Real Time Gross Settlement (RTGS), and Immediate Payment Service
• SMS alerts
• Bulk payment and virtual accounts
• Foreign Inward Remittance Certificate (FIRC) and Bulk Realisation Certificate (BRC

Click here to know more and kickstart your MSME journey the right way!

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.