MSME Loan Yojana 2024 : Business has become an important option for the future of today’s youth. But the biggest obstacle in starting any business is the lack of financial resources. To solve this problem, the government has started MSME Loan Yojana. Under which business loan up to Rs 1 crore will be made available to the beneficiary at the lowest interest rates. Through this loan, the beneficiaries will not only be able to set up a new industry but will also be able to expand any of their old businesses. Read this article till the end to apply for MSME loan scheme and know the necessary documents.
What is MSME Loan Scheme 2024?
MSME loan given under MSME Loan Yojana is a type of business loan. Which is given by various banks and financial institutions to individuals, small, medium and micro industries and startups. Under this scheme, eligible persons are provided a loan of minimum Rs 50,000 to Rs 1 crore. A person can use this loan to set up a new industry or to expand the existing industry.
The aim of this scheme is to encourage people to set up micro, small and medium scale industries and to promote these industries. So that the unemployment rate in the country can be reduced and the youth can become self-reliant. A person may have to pay interest ranging from 7% to 21% per annum on the loan received under the MSME Loan Yojana, which depends on the loan amount of the person and the loan providing bank or financial institution.
MSME Loan Yojana 2024: Overview
| Name of the article | MSME Loan Yojana |
| lender | State Bank of India, Bank of Baroda, Punjab National Bank, Axis Bank and others. |
| year | 2024 |
| Objective | To encourage individuals to set up small, medium and micro industries and to promote these industries. |
| Beneficiary | All citizens of the country |
| application system | offline and online |
| official website | https://msme.gov.in/ |
Benefits and Features of MSME Loan Scheme
1. Under this scheme, the beneficiary will be given a loan of up to Rs 1 crore to start a business.
2. The interest rate on this loan will be from 7% to 21% per annum.
3. Government is also running many schemes for MSME loan like Pradhan Mantri Mudra Yojana, Stand Up India, Startup India.
4. To get this loan, the applicant will not have to provide any kind of security.
5. The beneficiary can also use this loan amount to expand his business.
6. The loan recipient can repay the loan amount over a period of 7 years.
Eligibility for MSME Loan Scheme ?
- The age of the loan recipient should be between 18 years to 70 years.
- The applicant should either have a small industry or a detailed roadmap for a new industry.
- The CIBIL score of the person should be more than 750.
- The applicant should not have defaulted on any previous loan.
- Applicants from SC/ST or OBC category will be given priority in loan disbursal.
- Apart from this, some eligibility may vary depending on the provider banks.
MSME Loan Yojana Required Documents
- KYC documents like- Aadhar card, Voter ID card, PAN card etc.
- Business progress report or new project report
- I Certificate
- Bank statement for last 6 months
- Caste certificate
- Business Registration Certificate
- mobile number
- Passport size photograph
- Other documents as required by the loan providing institution
How to apply for loan offline under MSME Loan Yojana?
- To avail loan under the scheme, the applicant must first choose a bank of his/her choice.
- Now you can go to your nearest branch of this bank and get information about MSME loan.
- After this you will be given an application form by the bank officer.
- Enter all the information requested in this application form and attach the necessary documents with the form.
- Now submit this filled form along with the documents in the bank itself.
- After checking your application and documents, the loan amount will be transferred to your bank account by the bank.
How to apply online?
- First of all you have to select a bank.
- Now go to the official website of this bank and click on Loan .
- Here you will get the option of loan being provided under Pradhan Mantri Mudra Yojana, Stand Up India, and other schemes, CLICK on it.
- After CLICKing, proceed further by accepting some conditions under the scheme.
- Now enter all the information requested in the received application form.
- Finally upload all the required documents and click on submit .
Which banks are providing loans under MSME Loan Yojana?
- state Bank of India
- Axis Bank
- HDFC Bank
- Kotak Mahindra Bank
- Bank Of Baroda
- Punjab National Bank
- Tata Capital
- ICICI Bank
- IDFC Bank, etc.