The Government of India has launched many schemes under which the Micro, Small and Medium Enterprises can avail advances. The MSME loan schemes includes MUDRA loan, Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) and many more.
The MUDRA loans aim to provide loans up to Rs. 10 Lakh under 59-minute. The business loans are available in three different categories like Shishu, Kishor and Tarun. Under the Shishu loans, applicants can avail a maximum sum of Rs. 50,000. Kishor loans provide a loan amount from Rs. 50,000 to Rs. 5 Lakh. Borrowers can avail loans from Rs. 5 Lakh to Rs. 10 Lakh under Tarun. The repayment tenor is 5 years under this scheme.
The application process is convenient, and you will have to visit the official website to download an application form. Fill the application form with the required details like your name, phone number, parents’ name, date of birth, annual income, etc. After filling up the application form, you will have to select a lender offering credits under this scheme. Complete the formalities of the lender and provide the required documents. After the application process is completed, the amount will get disbursed.
The CGTMSE provides credits up to a maximum amount of Rs. 2 Crore to those meeting the eligibility criteria. For application, individuals are required to approach financial institutions or NBFCs offering advances under this plan. You will have to fill out an application form with the required details and present a feasible business plan to qualify.