MSME Loan Eligibility Checker

PMMY offers loans under 3 categories: Shishu (up to ₹50,000), Kishor (₹50,000–5 lakhs), Tarun (₹5–10 lakhs). No collateral required. For non-corporate non-farm micro and small enterprises. Interest rates 8.5–13% depending on bank. Udyam registration significantly improves approval chances.

CGTMSE provides government guarantee on MSME loans up to ₹2 crore without collateral. Banks are willing to lend to MSMEs with CGTMSE coverage because the government guarantees 75–85% of the loan. Guarantee fee is 0.37–2% per year paid by the borrower — a small price for collateral-free business funding.

Required: Udyam Registration certificate, last 3 years ITR and financial statements, 12 months bank statements, last 6 months GST returns, business ownership proof, KYC documents (Aadhaar, PAN), and existing loan details. Clean ITR filing and GST compliance history dramatically improve approval chances and reduce interest rates.

Emergency Credit Line Guarantee Scheme provides additional working capital up to 20–30% of outstanding credit as of March 2020, fully government-guaranteed. Check current availability as the scheme has been extended periodically. Primarily for businesses impacted by economic disruptions needing liquidity support.

Udyam Registration (online at udyam.gov.in) is free and gives your business official MSME status. Benefits: priority sector lending allocation, lower interest rates under government schemes, collateral-free loans under CGTMSE, reservation benefits in government procurement, and protection under MSMED Act for delayed payment recovery.