MSME Loan Eligibility Criteria & Documents

MSME loans are designed to encourage the growth of micro, small, and medium enterprises. These loans can help you start a business from scratch, arrange for working capital, or expand your enterprise.

Being aware of MSME loan eligibility requirements is important, as these loans are tailored to businesses that meet specific criteria. Meeting the eligibility will lead to a quick approval. Additionally, having the necessary documents ready can streamline the application process and make it hassle-free.

Financial institutions offer these loans to business owners that match certain criteria. To apply, you must meet the following terms:

• You need to be an Indian citizen

• You must between the age of 24-80 years

• You need to have a credit score of 685 or above

• Your business should be successfully running for at least 3 years

• Your enterprise should have filed an ITR (Income Tax Return) for a minimum of 1 year

• There should be no record of default in your or the business’s credit history

Additionally, your enterprise also needs to meet the following criteria:

Though the MSME loan eligibility criteria can vary as per lenders, you can apply for it as a:

• Partnership firm

• Hindu Undivided Family (HUF)

• Limited Liability Partnership (LLP)

• Limited company

• Women entrepreneur

• Proprietor

• Self-employed professional

• Co-operative society

Following documents should be submitted to apply for a MSME loan:

Proof of Identity (any of the following)

• Aadhaar card

• PAN card

• Passport

• Voter ID

Proof of Address (any one of the following)

• Utility bill (telephone or electricity)

• Aadhaar card

• Passport

• Driver’s licence

Proof of Business

• Business certificate

• Profit and loss statements for the last 3 years

• Income tax returns for the previous financial year

• Passport-size photographs

Keep in mind that the above requirements are generic in nature. You may need to submit additional documents or meet eligibility criteria as per the financial institution. 

Reference of all T&C necessarily refers to the terms of the Partners as regards to pre-approved offers and loan processing time amongst other conditions.