According to the new guideline provided by the government, the investment limit has been revised upwards and an additional criterion of turnover introduced for the MSME loans. Previously, the Micro, Small and Medium Enterprises Act (MSME Act) 2006 defined a micro-unit with the investment of up to Rs 25 lakh, a small enterprise with investment between Rs 25 lakh and Rs 5 crore and a medium one with investment between Rs 5 crore and Rs 10 crore. There was a distinction between the manufacturing and services, so in case of services, the investment limit for micro was up to Rs 10 lakh, for small, the investment cap was Rs 10 lakh to Rs 2 crore and for medium, the limit was Rs 2 crore to Rs 5 crore.
Now the revised definition of MSMEs introduced recently removed the distinction between manufacturing and services. This means a micro firm is one with investment up to Rs 1 crore and turnover less than Rs 5 crore, the small firm has investment up to Rs 10 crore and turnover up to Rs 50 crore and the medium-firm will be one with an investment of up to Rs 20 crore and turnover under Rs 100 crore. This new changes not only help a startup or the already functioning business to grow but it also helps them gain more benefits with greater transparency in the classification. This will also allow the government to verify a company’s turnover using the GST data than the investment in machinery. If you are looking to get an MSME loan, here is a step-by-step guide on how to apply for MSME loan online.
You will receive an OTP on your mobile number which is linked to your Aadhaar card. Fill the OTP on the window and click on "Validate" and an application form will appear.
Fill in all the details required.
Click on "Submit" once you have filled all the required details in the application form.
After you click the "Submit" button, the page will ask if you have entered all the data correctly. Click "OK" to confirm.
Now, you will again receive an OTP on your mobile number which is linked to your Aadhaar card. Fill the OTP and the code is given below on the window and click on " Final Submit" to submit the application form.
You will see the registration number above, just note it down for further references.