Industry Loan – Features and Benefits
India’s small-scale business segment contributes approximately 40% to the country’s GDP (Gross Domestic Product). Also known as the SME (Small and Medium Scale Enterprises) sector, it is a key source of employment and income. Stiff competition in this sector requires entrepreneurs to scale-up, innovate and upgrade their existing setups. Business expansion is key to succeed as an SME in India.
Businesses operating in this sector thus require external financing as small scale industries loan from lenders. They can avail these loans from both government and private financial institutions. Such funds are commonly utilised to meet daily operations, expand the business, and fulfil such other requirements.
Eligibility Criteria for Small Scale Industries Loan
Eligibility requirements very depending on the Central Government small scale industries loan scheme availed. Check out the basic eligibility requirements to look for when availing such advances.
- Business type – The business should fall under microenterprise category engaged in manufacturing, trading and services industry. The loan is also available for professionals like doctors, engineers, CAs, etc.
- Residential status – He/she should be a resident of India.
- Age requirement – Borrower must also meet the age requirement laid down by the concerned financial institution.
- Business status – Meet the business vintage requirement for a minimum of 3 years to avail a small scale industries loan from NBFCs like Bajaj Finserv.
- Credit score – Fulfil the minimum credit score requirement of 750 with zero payments default for improved chances of loan approval. Also, fulfil the documentation requirements of the lender for faster processing of your loan application. Keep the following documents handy before applying.
- KYC documents including proof of identity and proof of address, like Aadhaar card, voter ID card, PAN card, etc.
- Financial documents like profit and loss statement, balance sheet, tax returns and audit reports, etc.
- Bank account statements. Submit any other necessary documents required by your lender to avail the loan.