Every person needs a loan for different needs. No matter how much money a person earns, there are times when a lot of money is needed at once. So much money at once can only be obtained through loans. People take loans in different situations. Loans are needed for buying a car, building a house, educational reasons besides medical reasons and starting a business as a personal loan. At present, most of the young men and women are sitting unemployed at home despite being highly educated. There are many highly educated youths who have been waiting for years for a good government job. If they want, they can start a small business without waiting for a job. But despite the desire, the financial condition of the family cannot buy enough capital to start the business. That’s why they don’t start business. It has been arranged by the government to support all these youths. The government has taken an initiative to provide a loan to the unemployed youth to start a business and make them financially independent and this particular loan is also known as the MSME scheme.
MSME stands for Micro, Small, Medium. That is, you will get the opportunity to apply for this scheme to start any medium, small business. If you are an unemployed youth and want to start such a business, how to apply for this loan, how much money will be loaned, this report has given such information.
The Government of India first passed the MSME Act in 2006 to keep all micro or small scale industries alive. In labor intensive countries like India, the main pillar of the economy is the MSME scheme. The contribution of MSME loans is undeniable in keeping the small scale industries alive and running which many young women are joining every year in the country.
Purpose :- Number of registered MSME units in India is 6.34 crore. The contribution of the manufacturing sector to GDP is 6.11%. And 24.63% in the service sector GDP. Small and medium enterprises account for 45 percent of the country’s exports. About 12 crore people are involved in this sector. MSME loans have been started to provide financial support to them in business.
Let’s know some information about these three types of business loans:-
1. According to the definition of Micro – MSME, those industries which have an investment of not more than 1 crore and a turnover of not more than 5 crore are called micro industries.
2. Small – Those industries where the annual investment is not more than 10 crores and the returns are not more than 50 crores are called small industries.
3. Medium – Companies with annual investment of up to 50 crores and turnover of up to 250 crores have been listed by Ola as medium industry.
There are some conditions to take MSME loan :-
1) If you take an MSME loan, you have to repay this loan for a period of 12 to 60 months.
2) You will not need any collateral to take an MSME loan.
3) The interest rate in this loan is very low.
4) You can apply for this loan online.
7. Entrepreneurs from a recognized elite institution are given more special concessions on loans if they apply here.
8) Minimum age of applicant to avail this loan should be 18 to 22 years.
9) Applicants must be running a company of his own. It can be trading, manufacturing or any service related company.
10) Minimum 5 years experience in any business and 3 years related business experience.
12) The annual turnover or profit of the applicant should be at least 2 lakh rupees.
13) Applicant’s business name must be registered in Udayam portal with MSME certificate.
Application Procedure :-
1) First of all you need to visit the official website of MSME.
2) Select from the MSME Loan list, which loan you wish to take.
3) Then fill the application form.
4) Once the application form is completed, scan and upload the necessary documents.
5) MSME will then enter into a loan agreement with you. Go through the contract paper carefully and sign the contract paper after reading all the conditions.
6) Then wait to get an MSME Loan. The loan amount will be transferred to your account within a maximum of 48 hours.
Many small to medium industries have been established today with the help of these government loans. Many young women have found employment in all these small and medium industries. Also, if you also want to start your own business, then apply for the MSME scheme and start your own business. Once your business is established, you will have the opportunity to become financially independent, and you will be able to show the light of hope to other young people by giving them employment opportunities.