Mumbai, the capital of Maharashtra, is one of the metropolitan hubs of the country and one of the wealthiest places. The city of Mumbai, where dreams come true, is home to multiple industries including Bollywood, IT, infrastructure, finance, etc. Besides having a prosperous economy employing multiple people, it also has several important attractions such as the Worli sea link, the gateway of India, Juhu beach, etc.
It is a massive populous that gives many entrepreneurs a getaway to start their new businesses. It is considered one of the ideal places to open MSMEs or SMEs. However, individuals need adequate financial aid, for which they can avail of MSME loan/SME loans. Let us understand a bit more about availing of Mumbai MSME loans.
MSME loans mean financing small business owners, entrepreneurs, and other businessmen of the kind who can avail their small-term or long-term business financing expenses. This loan can be secured or unsecured, depending on the loan amount and lender.
People can avail of MSME loans in Mumbai either through government schemes or private banks. Whichever suits their interest. However, to access any kind of loan, by any of the banks, the business owner must satisfy the required eligibility criteria.
To avail of the required financial assistance from the different types of banks, an individual must satisfy the following conditions:-
1. Business Type: Sole Proprietorship, Partnership, Limited Liability Company, a registered company, and trusts
2. Documents: KYC, audited financial documents, proof of business ownership
3. Business Turnover: Micro units (up to Rs. 5 crores); Small units (up to Rs.75 crore); Medium units (up to Rs. 250 crores).
4. Applicant’s Credit Score: 750+
5. Age: minimum 21-67 years
6. Minimum income: 1.5 lakhs
7. Minimum turnover: 10 lakhs
These are the basic criteria that an individual has to satisfy to avail of MSME loans in Mumbai. New or small-scale enterprises, thus struggle to acquire MSME loans from lending institutions. Even government schemes require enterprises to produce audited financial statements, which new MSMEs/SMEs don’t produce. Plus, the processing period of government-endorsed MSME loans can go up to several days, making it unsuitable for dealing with emergencies.
1. ID proof: Driving license, Voter id card, PAN card, Aadhar card, Passport
2. Address proof: Driving license, Voter id card, PAN card, Aadhar card, Passport, Electricity Bill
3. Bank statement: Account statement for the last 2 months
4. Income statement: Bank passbook, IT returns of last 3 years, Pay slip of last 2 months, Certified letter from the employer, Form 16
5. Ownership proof of business: Office property papers, any government-recognized certificates
Although the steps differ from bank to bank, the basic steps that anyone has to follow to apply for a new business loan in Mumbai are as follows:-
1. Filling out the application form
2. Submission of necessary documents
3. Payment of processing fees
4. Procurement of loan disbursal papers
These are a few basic steps that anyone has to fulfill and which are pretty much the same in all lending institutions, whether public or private.
1. MSME loan in 59 minutes This scheme, also known as PSB Loan in 59 minutes, was launched by the Government of India which introduced a quick business loan portal for individuals who need to expand their existing business.
2. Pradhan mantra mudra yojana
MUDRA provides refinancing support to Banks and NBFCs for lending to Micro units having loan requirements up to INR 10 lakhs under the scheme of Pradhan Mantri MUDRA Yojana. Under PMMY, MUDRA divided the loan into three categories as ‘Shishu’, ‘Kishore’, and ‘Tarun’ to signify the stage of growth/development.
3. Credit Guarantee Fund Scheme for Micro and Small Enterprises
CCSE is a Government business loan scheme launched by the Government of India allowing collateral-free credit to the MSME sector. It includes both existing as well as new enterprises. The Ministry of MSMEs and Small Industries Development Bank of India (SIDBI) established a Trust named Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) to implement the CGFMSE scheme. Under this funding scheme, MSMEs get access to a loan amount of up to INR 200 lakhs with a special preference for eligible women.
4. National Small Industries Corporation
NSIC is an ISO-certified Indian Government enterprise under MSMEs. It is working to aid and promote the growth of MSMEs by providing combined support services encircling finance, marketing, technology, and other allied services all across the nation.
5. Credit Linked Capital Subsidy Scheme
CLCSS is an innovative credit scheme launched by the Ministry of MSMEs with the primary objective to aid the technology up-gradation of MSMEs, especially in rural and semi-urban areas. Under this scheme, businesses can opt for a 15% subsidy on investment in eligible machinery. However, there is a maximum cap on the subsidy restricting it to INR 1 crore.
1. How long does it take to get an MSME loan in Mumbai?
A business loan in Mumbai can be availed within 48 hours after the successful submission and filing of all necessary documents and meeting the eligibility criteria.
2. Are there any charges other than the interest rate that I have to pay to avail of the loan?
There are other different types of charges required to be paid to avail of the loan like processing fees, application fees, administration fees, legal fees, etc.
3. Is EMI service available to pay small business loans in Mumbai?
Yes, EMI service is available to pay for Business loans in Mumbai. The amount of EMI may vary on the amount of loan, the tenure it has been taken, and the rate of interest.
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