The following is a check list for MSME loans up to Rs.10 crore:

1. Proof of Identity: Aadhaar Card, Voter’s ID Card, Passport, Driving License, PAN Card, Signature identification from current bankers of proprietor, partner, or director (if a corporation).
2. Applicants should not be defaulters in any bank or financial institution.
3. Proof of residence: Aadhaar Card/Recent telephone bills, electricity bill, property tax receipt/Passport/Voter’s ID Card of Proprietor, partner of Director (if a firm).
4. Memorandum and Articles of Association for the Company / Partnership Deeds for partnership firms, etc.
5. Proof of Business Address.
6. Asset and liability statements for promoters and guarantors, as well as the most recent income tax filings.
7. Rent Agreement (if the business premises are rented) and, if appropriate, Pollution Control Board permission.
8. SSI / MSME registration / Udyog AADHAAR Memorandum, if applicable.
9. Projected balance sheets for the next two years if working capital constraints are in place, and the loan period if it is a term loan.
10. All properties provided as principal or collateral securities require copies of lease/title documents.
11. Certificate of incorporation from the RoC in the case of a company (CIN number and DIN number of directors)
12. Please provide bank account information, including outstanding balances for current loans or limits, as well as GSTN number (if applicable).
13. Available credit ratings include facts and reports, as well as a ZED rating.

Check the list for MSME loans with exposure greater than 25 lakhs:

• Profile of the unit (names of promoters and other directors in the company, the activity being carried out, addresses of all offices and plants, shareholding structure, etc.
• Balance sheets of the Associate/Group Companies from the previous three years (where applicable).
• Project report (for the proposed project if term funding is required) containing details of the machinery to be acquired, from whom to be acquired, price, names of suppliers, financial details such as machine capacity, assumed capacity of utilization, production, sales, projected profit and loss and balance sheets for the loan tenor, labor details, staff to be hired, the basis of assumption of such financial details, and so on.
• Manufacturing process, if applicable, the primary profile of executives in the firm, any collaborations, details about raw materials used and their suppliers, details about buyers, details about significant competitors, and the company’s strengths and weaknesses in comparison to their competitors, and so on. The checklist is an indication and not exhaustive. You can make additions as needed based on the local needs in each location.

A business plan, often known as a project report, is an important document when requesting for a bank loan. The bank utilizes this document to assess the project’s overall feasibility, risks, financial viability, and potential.

Conclusion

Companies looking for financial assistance to succeed in India’s changing business environment will find great value in the checklist for MSME loans up to Rs 10 crore. MSMEs can streamline their loan application process and set themselves up for success in the cutthroat market of today by carefully assessing their business ideas, financial stability, collateral options, regulatory compliance, and lender relationships.