What are the documents required for an MSME loan

Data from a report by TransUnion CIBIL and SIDBI reveals that as of December 2018, small business loans to individuals were the fastest-growing credit segment with a year-on-year rate of 19.2%. This may be because today, business owners have many credit options at their disposal and are looking to scale up their enterprises to cater to increasing demand from within the country and overseas. For example, you can get access to financing up to Rs. 20 lakh via the Bajaj Finserv MSME Loan in approximately 24 hours only. However, the key to obtaining funding quickly is to produce the correct documents required for an MSME loan at the time of application.

Lenders thoroughly examine your MSME loan documents as this paperwork reveals aspects like profitability, nature of business, ownership, physical address, and business vintage. Having these handy ensures that discrepancies are kept at bay, and your application gets approved without any hiccups. Here are the documents required for MSME loans so you can secure fast funding so grow your business.

Additional read: Benefits of MSME loan

General documents required for MSME loans

When applying for an MSME loan, the required documents normally include KYC documents, entity documents and financial statements. Here is a list that can serve as a general MSME loan document checklist.

• Identity proof: PAN card, Aadhaar card, driving license, passport, voter’s ID, etc
• Address proof: Ration card, electricity bill, lease agreement, trade license, etc
• Financial documents: Last two years ITR, audited balance sheets and profit and loss statements, last 6 months’ bank statements, projected turnover, etc
• Business proof:  Registration certificate, memorandum and articles of association, other certificates of business’ existence

Specific documents as per your business type

The documents required for MSME loans differ as per business type.

• Sole proprietorships: Registration certificate, ITR or another proof of business identity. In case you are a self-employed professional (SEP), you should produce proof of your qualification. For self-Employed Non-Professionals (SENP) like retailers and traders, proof of business suffices
• Companies: Certificate of incorporation, memorandum of association, articles of association
• Partnership firms: Registration certificate, partnership deed
• Private limited companies: Registration certificate, articles and memorandum of association
  

How to get an MSME loan from Bajaj Finserv

The actual list of documents required for MSME loans that you need to produce depends on the lender you apply to. For instance, when you pick Bajaj Finserv, you can obtain an MSME Loan by producing just 2 documents. This collateral-free loan comes on cost-effective terms with powerful features like the Flexi Loan facility that allows you to borrow from your sanction in parts, as per your needs, and pay interest only on the amount withdrawn. This way, you can improve your business cash flow and tackle regular or irregular expenses with ease.

Further, you can check your pre-approved loan offer before applying and thereby streamlining the application process and expediting disbursal. Single-step verification gives you instant financing that you can use to decongest bottlenecks in your supply chain and scale your business quickly.

Additional read: The efficient financing solution for MSMEs