WHAT IS MSME.? WHAT'S MSME LOAN? WHAT IS MUDRA LOAN? DOCUMENTS, CATEGORY AND CONDITIONS.

For more details visit ministry of MSME linkMUDRA Loan in detail link

What is MSME Loan?

MSME means Micro, Small, Medium Enterprises business entities, in MSME categorisation three changes are now made which are following… 

I. An increase in investment limits of micro, small and medium businesses entities. 

II. Introduction of turnover based classification. 

III. No distinction between companies in service provider or manufacturers. 

At above discussed based changes made by government now following are the current classification of MSME entities. 

I. Micro category: In micro business category those businesses who’s maximum business investment(including all machinery,plant or equipment, Furniture ,row materials etc..) is up-to max 1 Cr (Rs. One crore) and total maximum business turnover not more than five crores, falls under Micro business entity.  

II. Small category: In small business category those businesses who’s maximum business investment (including all machinery or equipment, plant, row materials etc… ) is up-to 10 Cr (Rs. Ten crores) and total maximum business turnover not more than fifty crores, falls under Small business entity.

III. Medium Enterprises category : In medium business category those businesses who’s maximum business investment (including all machinery or equipment, plant, row materials etc… ) is up-to 50 Cr (Rs. Fifty crores) and total maximum business turnover not more than 250 cr. (two hundred and fifty crores), falls under Medium  business entity.

    

                           MSME LOAN

Note: There are no middleman or agents involved in MSME loan facilities for availing msme loans, borrowers are advised to keep away these kinds of person. 

To apply MSME loan customer must be  register under msme (Udyog adhar -ie. Free Resistraion done at https://udyamregistration.gov.in) and visit your bank where you have already open your business account with following documents. 

I. Applicant's KYC: Applicant's passport size photo, photo id-date of birth-signature proof/pan card, address proof/aadhar card, relationship proof. 

II. Udyog adhar: Udyog adhar Resistraion copy. 

III. Quotations: All machinery/equipment quotation details and last 6months sales-purchase bills.

IV. ITR: Last 3 years ITR return and one year's bank statement.

V. SOA: Last one year all loan account statement. 

Note: Any extra documents can be asked as per banks requirement... Customers  must be aware that they should not have any default/overdue any loan or this kind of wrong practice/fraud, if found bank may cancel loan request at any stage.

                      MUDRA LOAN 

Note: There are no middleman or agents involved in mudra loan facilities for availing mudra loans, borrowers are advised to keep away these kinds of person. 

Under Pradhan mantri mudra yojana (PMMY), Mudra has created three schemes thats are following... 

I. Shishu: Covering up to Rs. 50,000/-

II. Kishore.  Covering above Rs. 50,000/- up to Rs. 5,00,000/-

III. Tarun: Covering above Rs. 5,00,000/- up to Rs. 10,00,000/-

                  Who Can Apply??? 

Note:Mudra Loan facilities are available for following end use..

1-Transport Vehicle. Example :Tractor, auto rickshaw etc. 

2-Community, Social & personal service activities. Example :salon, beauty parlor, dry cleaning, medical shop etc. 

3-Food products sectors. Example :Papad making, achar making etc. 

4-Textile products/activities. Example:Handloom, poweloom, khadi activities etc. 

5- Business loan for traders and shop keepers. 

6- Equipment finance schemes for micro units. 

7- Activities allied to agriculture. Example: Bee keeping,  poultry form, dairy, fishery etc. 

Documents required for Mudra Loan:

Borrower should visit at State bank of India for their MUDRA loan requirements about Mudra loan documentation and procedures request..with following documents....

I. KYC: Applicant's passport size photo, photo id-date of birth-signature proof/pan card, address proof/aadhar card, relationship proof. 

II. Business entities & Udyog adhar: Udyog adhar Resistraion copy & other business related permission/licenses.

III. Quotations: All machinery/equipment quotation details and last 6months sales-purchase bills.

IV. ITR: Last 3 years ITR return and one year's bank statement.

V. SOA: Last one year all loan account statement. 

Note: Any extra documents can be asked as per banks requirement... Customers  must be aware that they should not have any default/overdue any loan or this kind of wrong practice/fraud, if found bank may cancel loan request at any stage.

TYPES OF LOAN (LOAN PRODUCTS) , DEFINITION, CLASSIFICATION (INFORMATIONAL DETAILS)

Upcoming Loan Related videos

                        LOAN PRODUCTS 

 

1- Loan Against property (LAP). 

2- MSME Loan & MUDRA Loan.

3- HCV Loan. 

4- LCV & MUV Loan. 

5- CAR Loan. 

6- Tractor Loan. 

7- Home Loan. 

8- Gold Loan. 

7- Education Loan. 

8- Consumer Loan. 

9- Personal Loan. 

10- Business Loan. 

TYPES OF LOAN: 

There are two types of loans... 

I.  Secured loans: When Banks/NBFC or any financial organization takes any security (like property, machine etc) against the loan giving, its called secured loan.  

Example: Home Loan,  Mortgage Loan etc are secured loan. 

II. Unsecured loans: When Banks/NBFC or any financial organization provide loan without any security, it's called unsecured loan. 

Example: Personal loan, Business loan etc. 

                  What’s Loan Against Property?

When a customer offer his property as security for loan to the bank or NBFC then bank consider it as Loan against property-LAP (Flat or Bungalow or Land etc..  as security) for loan procedure.

Who can apply?

Any self employed and salaried both can apply for loan against property, if needed to expand business, commercial purchase,  children marriage, property renovation/construction etc. 

DOCUMENTS FOR MORTGAGE LOAN:

I. All applicant's KYC: All applicants passport size photo, photo id-date of birth-signature proof/pan card, address proof/aadhar card, relationship proof. 

II. One year updated bank statement:  Applicant's all savings and current account , loan account's updated one year clear bank statement required at the time of loan application. 

III. Business/job vintage proof(Example: last 2 years form16 in salaried and 2-3 years old shop act license..etc.), and income documents-ITR last 3 years or payslip last 3 to 6 month.

IV. All property related documents copy (Example: All sale agreements-chain agreements, share certificate, OC or CC & Plan copy, development agreement, latest property tax payment receipt, NOC etc..) and list of documents(LOD) in case of BT/bt top up case.

V. Initial login fees: All bank/NBFC or financial institutions takes some amount as initial login fees at the time of loan application request, which is not refundable. 

NOTE:1- All property documents list may be different according to geographical/judicial locations, above documents example is according to only for under Mumbai municipal registered property.

NOTE 2: Any extra documents can be asked as per banks requirement... Customers  must be aware that they should not do have any default/overdue any loan or this kind of wrong practice/fraud, if found bank may cancel loan request at any stage.

                               

                        2-What is MSME Loan?

MSME means Micro, Small, Medium Enterprises business entities, in MSME categorisation three changes are now made which are following… 

I. An increase in investment limits of micro, small and medium businesses entities. 

II. Introduction of turnover based classification. 

III. No distinction between companies in service provider or manufacturers. 

At above discussed based changes made by government now following are the current classification of MSME entities. 

I. Micro category: In micro business category those businesses who’s maximum business investment(including all machinery,plant or equipment, Furniture ,row materials etc..) is up-to max 1 Cr (Rs. One crore) and total maximum business turnover not more than five crores, falls under Micro business entity.  

II. Small category: In small business category those businesses who’s maximum business investment (including all machinery or equipment, plant, row materials etc… ) is up-to 10 Cr (Rs. Ten crores) and total maximum business turnover not more than fifty crores, falls under Small business entity.

III. Medium Enterprises category : In medium business category those businesses who’s maximum business investment (including all machinery or equipment, plant, row materials etc… ) is up-to 50 Cr (Rs. Fifty crores) and total maximum business turnover not more than 250 cr. (two hundred and fifty crores), falls under Medium  business entity.

    

                           MSME LOAN

To apply MSME loan customer must be  register under msme (Udyog adhar -ie. Free Resistraion done at https://udyamregistration.gov.in) and visit your bank where you have already open your business account with following documents. 

I. Applicant's KYC: Applicant's passport size photo, photo id-date of birth-signature proof/pan card, address proof/aadhar card, relationship proof. 

II. Udyog adhar: Udyog adhar Resistraion copy. 

III. Quotations: All machinery/equipment quotation details and last 6months sales-purchase bills.

IV. ITR: Last 3 years ITR return and one year's bank statement.

V. SOA: Last one year all loan account statement. 

Note: Any extra documents can be asked as per banks requirement... Customers  must be aware that they should not do have any default/overdue any loan or this kind of wrong practice/fraud, if found bank may cancel loan request at any stage.

                      MUDRA LOAN 

Note: There are no middleman or agents involved in mudra loan facilities for availing mudra loans, borrowers are advised to keep away this kinds of person. 

Under Pradhan mantri mudra yojana (PMMY), Mudra has created three schemes thats are following... 

I. Shishu: Covering up to Rs. 50,000/-

II. Kishore.  Covering above Rs. 50,000/- up to Rs. 5,00,000/-

III. Tarun: Covering above Rs. 5,00,000/- up to Rs. 10,00,000/-

                  Who Can Apply??? 

Note:Mudra Loan facilities are available for following end use..

1-Transport Vehicle. Example :Tractor, auto rickshaw etc. 

2-Community, Social & personal service activities. Example :salon, beauty parlor, dry cleaning, medical shop etc. 

3-Food products sectors. Example :Papad making, achar making etc. 

4-Textile products/activities. Example:Handloom, poweloom, khadi activities etc. 

5- Business loan for traders and shop keepers. 

6- Equipment finance schemes for micro units. 

7- Activities allied to agriculture. Example: Bee keeping,  poultry form, dairy, fishery etc. 

Documents required for Mudra Loan:

Borrower should visit at State bank of India for their MUDRA loan requirements about Mudra loan documentation and procedures request..with following documents....

I. KYC: Applicant's passport size photo, photo id-date of birth-signature proof/pan card, address proof/aadhar card, relationship proof. 

II. Business entities & Udyog adhar: Udyog adhar Resistraion copy & other business related permission/licenses.

III. Quotations: All machinery/equipment quotation details and last 6months sales-purchase bills.

IV. ITR: Last 3 years ITR return and one year's bank statement.

V. SOA: Last one year all loan account statement. 

Note: Any extra documents can be asked as per banks requirement... Customers  must be aware that they should not do have any default/overdue any loan or this kind of wrong practice/fraud, if found bank may cancel loan request at any stage.

What is NPA?

 What is NPA? mostly asked in financial sectors, since RBI describe it in very simple and very clear manner that an asset, including a leased asset, "become non performing when it seases to generate income for bank."    

Please find below details as mentioned on RBI (definition)  page...

                               Non ­performing Assets

Here RBI describing that an asset, including a leased asset, becomes non­ performing when it ceases to generate income for the bank. A non ­performing asset (NPA) is a loan or an advance where;

I. Interest and/ or installment of principal remain overdue for a period of more than 90 days in respect of a term loan,

II. The account remains ‘out of order’ as indicated at paragraph 2.2 below, in respect of an Overdraft/Cash Credit (OD/CC),

III. The bill remains overdue for a period of more than 90 days in the case of bills purchased and discounted,

IV. The instalment of principal or interest thereon remains overdue for two crop seasons for short duration crops,

V. The instalment of principal or interest thereon remains overdue for one crop season for long duration crops,

VI. The amount of liquidity facility remains outstanding for more than 90 days, in respect of a securitisation transaction undertaken in terms of guidelines on securitisation dated February 1, 2006.

VII. In respect of derivative transactions, the overdue receivables representing positive mark-to-market value of a derivative contract, if these remain unpaid for a period of 90 days from the specified due date for payment.

As per RBI  "Banks should, classify an account as NPA only if the interest due and charged during any quarter is not serviced fully within 90 days from the end of the quarter".Definition as per RBI