Fund Raising for MSME

MSME registration

All the businesses that are operating in the market and want to get a legal existence and want to avail benefits under the Fund Raising for MSME scheme can register themselves under the Micro, Small and Medium Enterprise Development Act 2006, and as per the government-enacted act, Micro, Small and Medium Enterprise Development (MSMED)

Fundraising for MSME remains under any of these three classifications for Micro, Small, and Medium Enterprises, and any venture falling under them. MSME ventures are the foundation of any economy and a motor of financial development, developing fair progress for everyone. In this way, the Government of India will support and advance MSMEs through various sponsorship schemes and encourage these companies through the MSMED Act. MSME Registration is required to take advantage of the benefits provided by the MSMED Act from the central or state government and the banking sector. MSMED Act requires that every MSME be licensed, whether the company is service-related or for manufacturing. MSME registration is a useful tool to exempt the extract, impose endowments, control tax sponsorships, capital speculation appropriations, and others.

MSME stands for Micro, Small, and Medium Enterprises, which are Indian economy. The small-scale industries are also known as MSMEs. With about 63.4 million units across the country's geographic expanse, MSMEs contribute about 6.11 percent of manufacturing GDP and 24.63 percent of GDP from service operations, as well as 33.4 percent of manufacturing production from India. They have been able to provide around 120 million people with jobs and contribute around 45 percent of India's total exports. Indian economic growth depends on this sector.

Benefits of MSME registrations:

• Helps in getting a bank loan

The Government of India has made collateral-free finance facilities available to the small and micro business entities. Banks and other money-related organizations perceive MSMEs and have made excellent schemes for them. This more often than not removes the need for segment loaning, which implies a high likelihood of a credit being supported by your company and a lower cost of bank financing.

• Subsidy on Trademark registration and Patent registration

The government provides a 50% subsidy on the registration fee of trademark or patent registration for holding an MSME certificate

• Exemption from overdraft interest

Businesses registered under MSME will avail the exemption on an interest rate of OD, which will differ from bank to bank.

• Eligible to avail a subsidy on industrial promotion

Businesses registered under MSME will get a subsidy for business promotion

• Tax benefit

In the initial years of your company, you can enjoy an excise benefit scheme, as well as exemption from some direct taxes.

• Government Tender filing

An NSIC-registered organization gets preference while seeking government tenders, and for NSIC Registration, MSME is compulsory; indirectly, MSME helps in seeking government tenders.

• Concession on the Electricity bill

• Reimbursement of ISO certification charges. etc

The procedure of MSME registration:

Step1. Verify your Aadhar

The first step is to verify your Aadhar on the Udyog aadhar site and verify your mobile number registered with your Aadhar number through OTP if your number is not registered with aadhar, then proceed with enrolment with another identity proof document.

Step2. Fill up the form

After mobile verification, the MSME registration form will be open, and the form will consist of details:

- Form of the organization (Proprietorship/partnership/company/LLP)

- PAN detail of organization (compulsory for company/LLP)

- Address details of the manufacturing or operating unit from where the business is operated

- Address detail registered office address

- Then choose your Sector under which you perform your business (Either the Manufacturing sector or/service sector)

- Then choose your NSIC code (National Industrial Classification) as per your business

- Then the MSME holder's mobile number and email ID

- Then provide the bank details

- Provide the initial capital detail

- Provide the worker's details (number of workers employed)

Step 3: Review the form before submitting it.

Step 4: Submit the form and verify your OTP while submitting the form, after submission, a UAM number will be generated. Note that for future reference.

Step 5: After submission of you will get your MSME certificate immediately or within 24 hours.

Step 6: Print your MSME certificate

 Documents and Information required for registration

Documents:

a. PAN copy of the business entity

b. PAN card copy of the applicant (Director/Partner/proprietor)

c. Aadhar card of applicant (Director/Partner/Proprietor)

Information required

a. Business Name and address details of the registered office and operational office

. b. Detail of the business for deciding your NSIC (about the products and services which the business is providing)

c. Business Bank Account detail (Bank name, branch name, account number, and IFSC)

d. Initial capital investment amount (in lakhs)

e. The number of workers employed

f. Date of establishment of the business

. Other information as per the requirement.

MSME Loan

It plays an important role in India's social and economic development. One of the key issues facing the sector is access to timely and sufficient financing. Catering to the financing needs of this significant segment of the Indian economy, along with simplifying a credit manager's decision-making process, is of paramount importance.

Running a successful business in a competitive world is no easy task. We understand how important it is for a business to have timely finance available without having to undergo tedious and long formalities. It should be a smooth, easy, and quick process to apply for a business loan (term loan, working capital loan, & mudra loan).

In the digital arena, through this platform, we offer MSMEs a great provision to meet their funding requirements by reducing turnaround time from days to just 59 minutes to receive in-principle approval!

The platform's greatest benefit is that it reimagines and strengthens the overall fundraising cycle. A very large portion of the operation is digitized and automated. Businesses are not only demanding convenience but also peace of mind, and both are offered by the platform.

Who can avail a loan online :

Individuals/ownerships, companies, incubation centers, firms, LLPs, and every other legal entity

Company loan approvals with/without collateral are currently issued for the amount of INR 1 Lac to INR 5 Crore in principle. The interest rate starts at 8.5 percent. The application is built with CGTMSE to check borrowers' eligibility.

Personal loan approvals are currently valid up to INR 20 Lacs, Home Loan In principle approvals are currently valid up to INR 10 Crores, and Auto Loan In principle approvals are currently valid up to INR 1 Crore

Documents required for a loan application:

1. Bank statement of the last 6 months
2. Proof of business registration (Certificate of incorporation/ or another registration certificate)
3. Owners detail/directors detail/partners detail
4. GST registration certificateProfit and loss statement, and balance sheet of the last 3 yearsITR returns

Procedure for applying for an Fund Raising for MSME loan online:

Step 1. Visit   https://www.psbloansin59minutes.com/home and click on apply

Step 2. Create your signature and verify it with your mobile OTP

Step 3. Submit your loan requirement

Step 4. Fill out the application

Step 5. Select your banking partners and answer the question as per your business information

Step 6. Fill in your GST details and verify that accordingly

Step 7. Enter your income source information

Step 8. Fill in all the information related to the company/business

Step 9. After filling in all the information, submit your application

After submission of the loan application, your selected banking partner will review that application and process your loan, or will ask for additional information if needed.

 Question 1: What are the main funding options available for MSMEs in Noida, Delhi NCR, India?
Answer: The main funding options available for MSMEs in Noida, Delhi NCR, India include bank loans, government schemes such as CGTMSE and PMEGP, NBFC financing, venture debt, angel investment, and private equity, depending on business size and growth stage.

Question 2: How can MSMEs in Noida, Delhi NCR, India, become eligible for government funding schemes?
Answer: MSMEs in Noida, Delhi NCR, India can become eligible for government funding schemes by obtaining Udyam Registration, maintaining proper financial records, filing timely GST returns, and meeting scheme-specific criteria.

Question 3: Is collateral required for MSME fundraising in Noida, Delhi NCR, India?
Answer: Collateral is not always required for MSME fundraising in Noida, Delhi, NCR, India, as schemes like CGTMSE provide collateral-free loans, while banks and NBFCs may assess creditworthiness and cash flow.

Question 4: How does a strong business plan help in fundraising for MSMEs in Noida, Delhi NCR, India?
Answer: A strong business plan helps in fundraising for MSMEs in Noida, Delhi NCR, India, by demonstrating revenue potential, market demand, financial projections, and repayment capability to lenders and investors.

Question 5: Can startups registered as MSMEs raise equity funding in Noida, Delhi NCR, India?
Answer: Yes, startups registered as MSMEs in Noida, Delhi NCR, India can raise equity funding from angel investors and venture capitalists, especially if they show scalability, innovation, and strong growth prospects.