After understanding our customers’ requirements and providing them with the needed information, we started a “How to” blog series. The first two blogs of this series were ” how to start your sanitary napkin business” and ” How to finance your sanitary napkin business” which got a great response, hence we are sharing some additional information about “How MSME incorporation can help you start your own manufacturing business in the hygiene industry”.
What are MSMEs?
MSMEs are micro, small and medium enterprises involved in the manufacturing or processing of commodities. MSMEs were launched by the government in 2006 to help small, micro and medium scale industries by providing them loans.
What is an MSME loan and how is it beneficial for you?
We, at Saral Designs, interact with aspiring entrepreneurs keen to set up their manufacturing business in the hygiene industry and we understand the financial constraints and risks that entrepreneurs face while deciding to get into a new venture. We believe that MSME loans are one of the best options for micro, small and medium-sized businesses.
MSME loan can help you start your own manufacturing business in the hygiene industry with Saral Designs by providing loans for various kinds of machines like Swachh, which will not only have returns with capital but also help women around the country in maintaining their health and hygiene.
In order to know more about the MSME loans, let’s go through the eligibility criteria for your company which will help you start with your manufacturing process are:
Micro enterprises – The investment doesn’t exceed Rs 1 crore and turnover doesn’t exceed 5 crores.
Small enterprises – The investment doesn’t exceed Rs 10 crores and turnover doesn’t exceed 50 crores.
Medium enterprises – The investment doesn’t exceed Rs 50 crore and turnover doesn’t exceed Rs 250 crore.’
The benefits of MSME loans are:
Quick process: Loan providers understand the need for finances on an urgent basis and help in the dispersal of funds and the process is easy and quick.
Online application: Some loan providers also allow the option of applying for the loan online to reduce excessive documentation.
Attractive Interest rate: One of the major benefits of MSME loans is a lower interest rate.
Free registration: The MSME registration process is free of cost.
Commitment free: There is no long-term commitment required mainly all the loans are short-termed. A short-termed loan helps the management to manage the cash flow and efficiently allocate available resources.
No collateral: MSME loans do not require collateral from companies to be eligible for them, so if you’re an aspiring entrepreneur MSME loans are one of the best ways to go.
The eligibility criteria for an individual to apply for an MSME loan are:
Age: An Individual should be at least 22 years of age while applying for the loan and a maximum of 65 years old.
Type of business: Sole proprietors and private companies which are engaged in manufacturing or services are also eligible for MSME loans.
Certificate: The business should be registered as an MSME in the Udyaan portal and should provide an MSME certificate.
Credit score: Applicants’ credit score should be 750 or above. The applicant must not have any record of loan default in their or the business’ name.
At Saral Designs, we provide the necessary knowledge and training to our customers so, entrepreneurs who are willing to start their own business can reach one step closer to buying a machine from Saral Designs as they can opt for an MSME loan to buy the machine.
Documents required to obtain an MSME loan are:
- Aadhaar Card is one of the most important documents to be eligible for a loan.
- Pan Card.
- Address of the business.
- 4 Bank account number.
- Bank and income statements.
Some more information on MSME Schemes:
- There are some MSME schemes launched by the government to increase participation in this initiative. Some of the schemes are to promote self-employment and they also provide the benefits of low subsidy interest rates, easy loans and loans with no collateral.
- Some MSME schemes have also been launched to empower women who aim to create something or start their own business. MSME schemes also help avail funds to replace their old machinery and upgrade their business with new technology. Check out in details and more schemes here.
The business in a box model of Saral designs supports new businesses and helps their new machine buyers, right from suggesting the required capacity machine to its implementation and also trains you to sell the products to get an effortless start in their business.
