If you own a small, medium, or micro business enterprise, you can get it registered as an MSME and enjoy several benefits like easy business loans. This can be done under the aegis of the Udyam Registration scheme, which was previously known as Udyog Aadhar.
About Udyog Aadhar
Udyog Aadhar or Udyam Registration is an identification system for MSMEs. It is a government registration that comes with a recognition certificate and a unique number to certify micro, small and medium enterprises. By registering your MSME via Udyam Registration, you get to take advantage of numerous benefits that the government provides for, prime among them business loans in India.
Registration Process
The process of Udyog Aadhar or Udyam registration process is entirely online and based on self-declaration. Before you register your enterprise as an MSME, check whether your business can be classified as a micro, small, medium enterprise based on investment in plant and machinery.
| Enterprise | Investment Threshold | Turnover Threshold |
| Micro Enterprise | Up to Rs.1 crore | Up to Rs.5 crore |
| Small Enterprise | Up to Rs.10 crore | Up to Rs.50 crore |
| Medium Enterprise | Up to Rs.50 crore | Up to Rs. 250 crore |
Once you register your MSME with Udyam, you get to enjoy many benefits such as business loans at subsidised rates. Let us get to know how to get loan for new business or business expansion.
How to Get Loan for New Business
Before applying for a SME loan, make sure to check your business loan eligibility. Following is the standard eligibility criteria if you are applying for a business loan in India:
- You can get a business loan if your age is between 25 to 65 years.
- The business must be profitable for three consecutive years.
- Your business turnover should show an upward trend.
- The balance sheet must be audited by a registered Chartered Accountant.
Also, remember to check with your financial lender to know more about your business loan eligibility. How to Apply
The process to apply for a loan for business is quite simple.
- Visit your lender’s website and fill in the business loan application with the correct information.
- Provide the necessary documents to take your application ahead.
- Your lender will verify the business loan form and the submitted documents. This verification process might involve a personal discussion with you.
- Once your application for a loan for business has been approved, the loan amount is sanctioned.
When searching for a business loan in India, turn to Tata Capital. Whether it is for investment in new business infrastructure or working capital, our MSME/SME business loan can provide you with adequate funds. To avail a loan with us, check your eligibility and the documents required. Once you have checked eligibility and have the documents in order, go ahead and fill the application to get your hands on quick funds with our business loans.
