Did you know that nearly 106 million people in India are employed in MSMEs? To offer credit support and assist MSME business owners with financing, National Small Industry Corporation (NSIC) introduced the Bank Credit Facilitation scheme. In this article, read about the documents you need to apply for business finance under this scheme.

Documents required for the scheme

Whether you are applying for a loan to purchase any essential equipment or need working capital to stay afloat, any MSME can benefit from the credit facilitation scheme. The documents required vary according to the purpose of the loan. However, the standard set of business loan documentsare: 

  • A correctly filled and signed application form.
  • Valid proof of identity. It can be your AADHAR card, driving license or passport.
  • Copy of PAN card and or GST registration.
  • Valid proof of residence. It can be your identity proof or a utility bill.
  • Valid address proof of your business.
  • Asset proof of your guarantors, promoters and directors. You may also need to submit their liability statement and latest records of income tax returns.
  • If your business’s physical premises are rented or on a lease, a copy of the rental agreement or lease agreement is required.

Additional Read:  Guide for First-Time SME Loan Applicants

  • A memorandum of the entrepreneur and a copy of the SSI registration certificate proving that you come under the MSME category.
  • A detailed business profile, including the nature of your business, the name and address of the promoters, the postal address of your business premises, the shareholder’s pattern, and the company’s experience.
  • A detailed balance sheet of the enterprise.
  • The latest documents of Income Tax or Service Tax returns from the past two years.
  • A detailed projected balance sheet for the next two years.
  • A copy of your Credit Monitoring Arrangement (CMA). This report provides the past performance and projected performance of your business in financial terms.
  • Records of the existing bank account, such as a passbook or bank statements.
  • The loan amount and term as per your business project projection.
  • Details of your business projects such as estimates, quotations, and sanctions of the business plan.
  • Documents related to the deeds of the partnership, rules and by-laws, memorandums, trust, certificate of incorporation and articles of association.
  • A clearance certificate or sanction from the pollution board, the electricity board and other statutory authorities.
  • Documents providing the month-wise data of current financial year sales, stock value, records of debits and credits, and finished goods.

Additional Read:  New Business Loan Schemes for SMEs

Conclusion

We hope this article offers clarity on the list of documents you would need for availing of a business loan. Under the MSME credit facilitation scheme, you will also receive assistance from NSIC representatives for documentation and processing.

Before applying for MSME finance, you can use Tata Capital’s business loan EMI calculator online and understand your loan structure, EMIs, and interest payable. We at Tata Capital also provide multi-purpose business finance offerings with flexible repayment terms. Get extended loan tenures, high loan amounts, and attractive business loan interest rates. Contact us today!

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