Tag: Micro Small Enterprise Funding Scheme

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What are the Documents Required for Mudra Loan?

What are the documents required for MUDRA Loan

PMMY loan offers up to Rs. 10 Lakh for MSMEs for non-corporate non-farming origin businesses. The objective is to encourage the young generation into entrepreneurship by promoting them with financial aid, focusing on the growth of micro-enterprises. The applicant will require some specific documents to produce to the bank. Below are the documents required for Mudra Loan:

1. Proof of Identity
  • Applicant should produce self-attested photocopies of:
  • Aadhar Card
  • Driving License
  • Voter ID
  • PAN Card
  • Passport
2. Proof of Address
  • Utility Bill copy of electricity, telephone, gas, property tax, etc.
  • Aadhar Card
  • Driving License
  • Voter ID
  • Passport
  • Latest bank account statement
3. Duly fill out the application form for the Mudra loan
4. Applicant passport size photo in 2 number
5. Proof of Business
  • Certificate of Registration
  • Business License
  • Articles of Organization
  • Proof of Business Ownership
  • Or any other documents confirming the business existence and address
6. Business Plan/Project Report

A business plan also known as a project report is a crucial document when applying for a bank loan. The bank uses this document to analyze the overall feasibility, risks, financial viability, and potential of a project. A well-crafted and convincing project report increases the chances of loan approval. With Finline you can craft a compelling project report in less than 10 minutes. That too in your language. Our reports are accepted by all public and private sector banks working in India. Click to create your project report.

7. Other Mudra Loan Documents
  • Photos of owners, partners, etc.
  • Proof of Category – SC/ST/OBC
  • Estimated balance sheet for the loan period
  • Income/sales returns
  • Last 12 month’s Bank Statement
  • Partnership Deed or MoA or AoA
  • Sales during the period and estimated sales for the loan period
  • Business report certifying the economic and technical viability of the business

 Based on the type of business and bank, the documents required for Mudra loan change as per the specific loan schemes like Shishu, Tarun, and Kishor.

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How to get Startup Business Loan in India?

A startup business loan in India is meant to support the financial hurdles of a new business. Startups and micro industries require funding to grow and manage the business. As a result, the business will thrive in the market. At the initial stage startups don’t have access to the funds in the market. Therefore governments have taken a step to provide funds and promote these industries. Startup business loans in India can be used towards things like working capital, the purchase of equipment, machinery, supplies, inventory, and furniture, and the purchase of construction equipment, etc.

What are the Criteria for Startup Business Loans in India?

Get a Startup business loan from a bank or a financial body to raise capital or expand your current business. The applicant should meet the requirements of the lenders. A few requirements are the applicant profile and documents. Below are some points:

1. Applicant Profile

The personal background of the applicant will be verified. If the Applicants have criminal backgrounds this will make them ineligible or delay the process. The age limit of the applicant should be 21 to 65.

2. Business background: 

Outline the goals and the objectives of the business should be clear. The firm should not be five years old and it should be reregistered as private or partnership.

3. Business Plan/Project report: 

A detailed and elaborate business plan should be submitted. It will give the lender a detailed overview of the startup idea. Get a perfect business plan/project report with  Finline.

4. Financial statements:

 Submit all the financial projections like balance sheets, profit and loss statements, and cash flow statements.

5. Legal documents: 

Applicant should submit all the legal documents to prove the legality of the business.

6. Collateral:

 Some government loans are collateral-free, also they help the applicant get more amount.

What are the documents required to take a Startup Business Loan in India?                                                     
  1. Identity Proof – Passport, PAN card, Aadhaar card, driver’s license, or voter ID
  2. Address Proof – Electricity bills, telephone bills, Passport, Aadhaarcard 
  3. Income Statement – Proof of stable income to be provided
  4. Bank Statements – The last 6 months’ bank statement to be submitted
  5. Photos – 2 copies passport size.
  6. Financial statements audited by a CA for the past 2 consecutive years
  7. IT returns for the last 2 consecutive years
What are the Government Loans for Startup Businesses in India?

If the applicant has all the above requirements ready, they need to identify the appropriate scheme offered by the government of India for entrepreneurs. Some of the popular schemes offered by the government of India for startups and MSMEs are as follows:

1. Credit Facilitation Scheme

This scheme is handled by the National Small Industries Corporation (NSIC). They target to meet the credit needs of the MSME units. The NSIC partnering with various banks to provide loans to the MSME units. The repayment tenure will range from 5 years to 7 years, with the possibility of extending it up to 11 years.

2. Pradhan Mantri Mudra Yojana (PMMY)

The Micro Units Development and Refinance Agency (MUDRA) launched PMMY in 2015. It aims at offering loans to all kinds of manufacturing, trading, and service sector activities. The loan categories under MUDRA are – Shishu, Kishor, and Tarun. The loan amounts range between Rs.50,000 and Rs.10 lakh.

3. Credit Guarantee Scheme

New and existing MSMEs engaged in service or manufacturing activities, excluding educational institutions, agriculture, retail trade, Self Help Groups (SHGs), etc., qualify for this. You can borrow up to Rs. 200 lakh under this scheme.

4. Startup India

This scheme extends loans to enterprises in manufacturing, trading, or services. Loans ranging between Rs.10 lakh and Rs.1 crore can be availed. You can repay the loans taken under this scheme within seven years.

5. Sustainable Finance Scheme

This scheme offers loans to industries that deal in green energy, renewable energy, technology hardware, and non-renewable energy. The government started this scheme to offer sustainable development projects.  

About Finline!

Finline is an online platform for creating financial reports for getting bank loans and investments. It’s like ‘Canva’ but for financials. If you are an entrepreneur looking for a bank loan, you need to have a well-crafted project report. We, at Finline will help you with that. Our team will help you create a powerful business plan in ten minutes. That too in your language. Also all public and private sector banks working in India accept our project report. Click to create your report.

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Which are the Best Low Investment Business Ideas?

Not all the business require huge capital to start with. Putting your business ideas into reality and making them happen is the hard side. Entrepreneurs struggle to find investments and ideas to kick start their business.

Governments encourage individuals to start businesses. As well as they introduced several startup schemes to support the entrepreneurs with low investment business ideas. Here is a list of low investments business ideas you can start.
1. Pets Care Shop

Imagine getting paid to walk someone’s dogs. As the pet industry is growing, it can be profitable to start a business with low investment.

What you’ll have to do:

Walk and play with pets people love. However, while traveling for holiday or business, they are unable to take their pets along. Hence, people look for services that will care for their pets while they are away. If you are well versed in handling pets, this is a great business you may consider. Again, this is a small business that requires low investment.

2. Travel Agency

If you hold the capabilities to plan the perfect vacation along with the best accommodation and services in the given budget, starting a travel agency can be a great business idea in India for you.

What you’ll have to do:

· Plan and execute travel packages according to customer needs

· Fit customer needs within the budget

· Book tickets and hotels for the customer.

3. Pickle Business

Pickles are a traditional food item in India and are extremely popular. You will find at least one variant of pickle in every Indian household. Thus, if you want to start small, a pickle business is a safe and easy option.

Key points:

Apart from the Indian market, Indian pickles are greatly in demand abroad as well.

You can start this business at your home with a small capital and earn great.

4. Paper and Jute Bags

We know that environmental protection and awareness have increased considerably over the past decade. And people realize just how harmful non-biodegradable plastic bags are to the environment.

As a result, eco-friendly bags and packaging made from paper and jute have become popular. Paper and jute bags can be used in pack shopping items, food items, medical items, jewelry, and also as handbags.

As well as Government wants to reduce the use of plastic, they are promoting paper and jute bags. Paper bag-making business can be started small scale with low investment. Paper bag-making machines would cost around Rs 3 lakh -8 Lakhs, however, they involve more manual work and labor.

With a world moving to ban plastic, a jute and paper bag manufacturing business is a good choice. The jute bag-making process is simple and promoted as eco-friendly products and go-green initiatives from the government.

5. Idly Dosa Batter Business

The south Indian communities love Idli and Dosa and are now popular across India. Likewise, not everyone can prepare the batter required for making these dishes. The batter requires a proper blend of rice and cereals.

As fast foods have become a part of our life so have Packaged Idli and Dosa batter, with most stores stocking several packets for their customers. To set up an idly dosa batter manufacturing unit from home or a small premise is fairly inexpensive.

Government supports small business by providing grants and subsidies. Startup business loans are applicable for small business units. Applicants can approach banks for financial aids with proper documents.
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How can I Apply MUDRA Loan?

Applicants can apply for Mudra loans online and offline at their convenience. MUDRA, Micro Units Development & Refinance Agency loans are offered up to ₹ 10 Lakh to micro, small, and medium enterprises. The loan is applicable for a repayment period of a maximum of 5 years without submitting any security as collateral. Public sector banks, private sector banks, NBFCs, co-operative banks, small finance banks, regional rural banks, and microfinance institutions consider the loan application with genuine and proper documents.

How to Apply for a MUDRA Loan Online?

Applicants can apply for a Mudra loan online by visiting the official website of the particular bank. It saves time and trouble-free process. Below are simple steps to apply for Mudra loan registration online:

  1. Identify the appropriate bank.
  2. Browse the official website of the particular bank.
  3. Download the online application form.
  4. Fill in the different sections and fields with the required details
  5. Complete the application and necessary documents
  6. Submit Project Report/Business plan
  7. Wait for the bank representative to contact you for further processing.
  8. Once the loan application form and attached documents are processed and verified, the loan shall be approved and further disbursed by the bank
How to Apply for a MUDRA Loan Offline?

If applicants want to file the Mudra loan application form offline, follow the below-mentioned steps:

  1. Applicants should research the particular bank that provides Mudra loans. Study the interest rates and other charges before you put up an application.
  2. Completed application form.
  3. Submit Project report/Business plan.
  4. Together with the application form, submit the passport-sized photographs, identity proof, address proof, company’s address and identity proof, caste certificate, if applicable, financial statements, IT returns, sales tax returns, and other equipment details.
  5. Complete all the bank’s formalities and procedures.
  6. The loan shall get approved, once all the documents are verified.
  7. After the loan is approved, the desired amount will get credited to the particular bank account within working days.
How to apply and download the MUDRA Loan application form?

CLICK HERE

About Finline!

Finline is an online platform for creating financial reports for getting bank loans and investments. It’s like ‘Canva’ but for financials. If you are an entrepreneur looking for a bank loan, you need to have a well-crafted project report. We, at Finline will help you with that. Our team will help you create a powerful business plan in ten minutes. That too in your language. Also, all public and private sector banks working in India accept our project report. Click to create your report.

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Loan Schemes

Micro Small Enterprise Funding Scheme – Tamilnadu

The Micro Small Enterprise Funding Scheme is initiated by the Government of Tamil Nadu to advance the growth and competitiveness of micro and small enterprises

The Micro Small Enterprise Funding Scheme was initiated by the Government of Tamil Nadu to advance the growth and competitiveness of micro and small enterprises (MSE). The Tamil Nadu Industrial Investment Corporation Limited (TIIC) is charged with overseeing and executing this scheme. Even the Government of Tamil Nadu provides financial assistance under this MSE funding scheme. Moreover, to the New or Well-Known Units in Micro and Small Enterprises with an overall project outlay of Rs.50.00 lakhs.

What are the Objectives of the Micro Small Enterprise Funding Scheme, Tamilnadu?

The main objective is to the extension of financial assistance. To new/existing micro and small enterprise units with a cumulative project outlay of Rs.50 lakh. Other purposes are as follows:

  • Upgrading infrastructure facilities in new or existing MSE industrial zones through financial assistance provided.
  • For the creation of fixed assets in small businesses and small businesses (MSE). They are improving the growth of micro/small businesses through the advancement of technology. Also, the skills, and quality, access to markets, access to resources. Also, to increase the potential of the SMEs. By forming self-help groups, consortia, up-gradation of associations, etc. Construction of research centres, training centres, depots of raw materials, effluent disposal, complementary manufacturing methods, etc.
What are the Eligibility Criteria for the Micro Small Enterprise Funding Scheme, Tamilnadu?

The conditions for eligibility for financial assistance under the Micro / Small Enterprises Funding Scheme here: New micro and small-scale enterprises for the manufacturing, storage, or processing of products, regardless of location. Also, for service sector ventures such as hospitals, fast food restaurants, etc. Except for small road transport operators [SRTOs], and new micro and small-scale enterprises. Even the Tamil Nadu Current Micro and Small Scale Enterprises (MSE) Units. Moreover, the Service Businesses, Growth, Modernization, Gradation of Technology and Diversification are Important to all property, Partnership, and Limited companies like LLP.

The cost of a project under the Micro and Small Enterprises Funding Scheme never exceeds Rs.50 Lakh. Also, this amount is only for the new units. In respect of existing MSE units, the cost of the project never exceeds Rs.50. Lakhs. Under the Micro and Small Enterprises Funding Scheme, the allotment of the Loan depends on the type of user:

Firstly, subject to the project cost, a term loan of 80% is granted for new MSE units. That governs a maximum of up to Rs.40 lakhs.

Secondly, for existing MSE units, a term loan of 75% of the project cost. That governs to a maximum of Rs.37.50 lakhs.

 The Minimum Promoter’s contribution to the Micro and Small Enterprises Funding Scheme is set at 20% of the project cost. But in Detail :

So, all the new units receive a Promoter’s Contribution of 20% of the Project Cost.

Also, the Promoter contributes 25% of the Project Cost to all the existing units.

What are the Documents Needed Micro Small Enterprise Funding Scheme, Tamilnadu?
  • KYC documents
  • Proof of ID: Aadhar card, PAN card, Passport, voter ID
  • Proof of residential address
  • Projected balance sheet/ Project report 
  • Business address proof
  • Business registration Proof: – Partnership title / Certified copies of MOA / AOA
  • Bank statement 6 months ago( If existing unit)

In the above list, a Business plan also known as a project report is a crucial document when applying for a bank loan. The bank uses this document to analyze the overall feasibility, risks, financial viability, and potential of a project. A well-crafted and convincing project report increases the chances of loan approval. With Finline you can craft a compelling project report in less than 10 minutes. That too in your language. Also, all public and private sector banks working in India accept our project report. Click to create your project report.