Benefits of MSME Loan Scheme from ZipLoan
The following are the benefits of availing an MSME loan from us:
- Manage Working Capital Efficiently: Our MSME loan will help you accelerate your business growth by purchasing new machinery, office revamping, and streamlining your working capital.
- Business Expansion: With a quick MSME loan from ZipLoan, you can get ahead with production, product marketing, and expand your supply network as well.
- Raise Credibility: With our MSME loan scheme, you can boost your business and deliver the order on time that will increase your credibility in the market.
Eligibility Criteria of MSME Loan
Our MSME loan eligibility criteria are simple to let more and more business individuals avail of the loan amount.
- An established MSME with a proven business vintage of more than two years.
- Minimum annual turnover of Rs. 10 lakhs in the previous year.
- The business must not have any default history.
- The income tax filed during the last year should be more than Rs. 1.5 lakhs.
- The borrower should own either house or a business place.
Documents Required for an MSME / SME Loans
| ||Proprietorship||Partnership||Pvt. Ltd. / LLP / One Person Company|
|Bank statement (12 months)||✓||✓||✓|
|Business registration proof||✓||✓||✓|
|ITR of the previous two years||✓||✓||✓|
MSME / SME Loans Fees & Interest Rates
|Customized Interest Rates||Yes|
|Loan Tenure||up to 36 months|
|Pre-closure charges||Nil** after paid the first 6 EMIs|
| || |
|Eligibility Criteria||Annual turnover more than Rs.10 lakh|
|Loan Amount||₹ 1 Lakh – ₹ 7,5 Lakh|
How to Calculate MSME/SME Loan EMI?
Here is the formula to calculate MSME Loan EMI
EMI = P × r × (1 + r) n/ ((1 + r) n – 1)
P: Loan amount, r: interest rate, n: tenure in number of months
How to Apply for MSME/SME Loan
Here are three steps process to MSME loan apply online from ZipLoan:
- Submit Application - Simply enter your personal, business, and financial info to receive an MSME / SME Loans offer.
- Upload Documents - Upload digital copies of your documents in a single-step process for verification.
- Get Sanctioned - Receive your MSME / SME Loans approval and disbursal within 3 working days*.
How to Use MSME/SME Loan 2020-21?
MSME loan scheme 2020 is a great way to fund your business when needed. Here how you can utilize the fund of MSME/SME finance.
- Inventory Management – MSME loan is a great way to secure your supply chain. With a fund of MSME finance, you can buy new stocks, and products, etc.
- Buy New Machinery – You can use an MSME fund to buy new machinery and equipment. Machinery loan up to 7.5 lakhs from Ziploan will help you expand your business without draining your capital fund.
- Working Capital Management – You can maintain your working capital management with our collateral-free MSME loan.
- Repay Small Debts – One of the great advantages of availing MSME loan is you can repay small debts.
- Invest in Marketing – MSME finance can be used to market your product or services to new consumers. Because marketing needs lots of funds that can be fulfil using MSME loan online.
Relief Package for MSMEs
COVID19 Relief and Atmanirbhar package for MSMEs announced on 13th May 2020
- Banks and NBFCs to provide Emergency Credit Line to MSMEs to up to 20% of entire outstanding credit as on 29.2.2020
- Eligible Borrowers: Up to ₹ 25 Cr of the outstanding loan and up to Rs 100 crore of turnover
- Loan Tenure: 4 years with a 1-year moratorium
- Guarantee: 100% credit guarantee cover by the government to Banks and NBFCs.
- Interest: Interest Capped and No Guarantee Fee
- Validity: Scheme available till 31st Oct 2020
- Subordinated Debt along with partial guarantee support from government to banks for providing Rs 20000 crore subordinated debt to stressed and NPA MSMEs. Government to take the risk to cover up to the first 20% of the loss.
- The Prime Minister of India, Shri. Narendra Modi announced a special economic package on 12 May 2020 for the MSMEs to help them overcome the COVID-19 crisis. The PM announced a package of 20 lakh crores which is equivalent to 10% of India's GDP.
- Fund of Funds with a corpus of ₹ 1,000 Cr to be set up to provide equity funding support to MSMEs with high growth potential
- The World Bank’s Board of Executive Directors has approved a $500 million program to support the Government of India’s nationwide initiative to revitalize the MSME sector, which has been heavily impacted by the COVID-19 crisis.
New Definition of MSMEs announced
- Global Tenders for any government procurement of up to ₹ 200 Cr disallowed which means more opportunity for domestic MSMEs
- All MSME receivables from Gov and CPSEs to be released in the next 45 days.
Government MSME Schemes
|Mudra Loan||The Mudra loan yojana offers funds to MSMEs without collateral. The scheme focuses more on priority sector lending, with maximum lending of ₹ 10 Lakh.|
|CGTMSE Loan||Credit Guarantee Funds Trust for Micro and Small Enterprise or CGTMSE is a Government of India's MSME Loan scheme to provide business loans to the existing and new Micro and Small scale industries. The loans are granted for a maximum amount of ₹ 1 Cr.|
|PMEGP Loan||Prime Minister’s Employment Generation Programme or PMEGP is an integrated subsidy scheme linked with Prime Minister Rojgar Yojana. The scheme was launched in 2008 and aims to provide business opportunities for the unemployed youth.|
MSME Schemes by Banks in India
|Working Capital Loan||Banks offer these types of loans to fulfil daily cash requirements. Working capital loans example are Cash Credit Loan, Bills Discounting Facility and Letter of Credit (LOC|
|Term Loan||Term Loan on other hand can be used for capital expansion, capital expenditure, or buying fixed assets. It can be secured and unsecured.|