How to Apply for MSME Loan without Collateral?
Planning to start your own small-scale business? You can easily get small business loans for MSME without any collateral at a simple and low rate for commercial ventures. A micro, small or medium enterprise (MSME) loan helps you boost the business cash flow to fuel up the effortless industrial growth. It will be good enough if you have a detailed knowledge about MSME like what is MSME, what are their paid up capital and other things.
How to apply for MSME loans for easier capital flow?
- To get MSME loan, you need to find out about the loan tenure, interest rate, loan revenue and also your credentials for a business loan for getting it approved without security or collateral.
- Apply for the MSME loan without collateral by submitting the application to a bank or NBFC. After that, you will be notified about the loan approval the same day.
- Access the funds you require – If your loan application is approved, you also need to access your business loan funds that you need to deposit in the bank account within two to three business days.
Types of MSME loans
- Line of Credit
- Working capital loans
- Invoice Financing
- Merchant Cash Advance
Documents that need to be submitted along with MSME Loan Application:
- ITR documents for the last two years
- GST returns for the last year
- KYC documents of business and the business owner
- Overdraft sanction and loan letters
- Business bank statements of the past six months
What kind of business requirements can be met with MSME loan in India?
Most borrowers apply for MSME loan for:
- Expanding the business to a new location
- Replenishing their inventory
- Renovating their shop, office or showroom
- Upgrading technology
- Purchasing new equipment
- Creating a financial cushion for the lean season
- Invigorating marketing campaigns
Many banks and NBFCs offer you a wide range of sources of working capital with loan amount from INR 5 lakh to INR 50 lakh for starting your business and seek more opportunities for growth and expansion in your respective industry.
June 10th, 2019