How can MSMEs get funds without any income proof

The significance of the 63 million Micro, Small, & Medium Enterprises (MSME) - which contribute around 30% of India's GDP and livelihood to over 110 million people - has become far more relevant today with the nation aspiring to be $5 trillion economy in another few years.

With the government giving major impetus to the ‘vocal for local’ and ‘Make in India’ projects, there is a tremendous scope for new ventures, self-employed and first-time business owners across many sectors.

However, for these budding entrepreneurs, securing a working or a business loan remains a tough task, especially without an income proof, including the Income Tax return statements. ?As an aspiring entrepreneur, you may be in desperate need of finance to start or scale-up your small enterprise; n both scenarios, you may have very little income proof that would encourage a lender to give you a loan. So, how can you get a business loan without the income proof and ITR?

Financial institutions have been working diligently to close this credit gap through loans without much income documentation. Individuals, small companies, retailers, manufacturers, various partnerships, sole proprietorships and even co-operative societies can avail a business loan without a detailed income proof.? These funds can be used for expansion, buying plant and machinery, hiring people or paying salaries, purchasing or leasing land and office, stocking up raw materials, paying off debt among key business activities.

Applicants – between 18 to 65 years – can apply for loans, ranging from Rs 2 lakhs to Rs 50 lakhs, based on their business needs.

While there are several government schemes that are intended to promote entrepreneurship among the youth, leading banks and NBFCs provide business loans faster, without the ITR, at very competitive rates. If you could furnish any collaterals, like a property, term deposits, bonds or add someone as co-applicant, it would certainly speed up the process as well as increase the chance of getting a higher amount. A dynamic business plan would always excite the lenders to keep supporting you.

As a young businessman, you should look for lenders who specialise in no-doc or low-doc loans, disbursed without much delay. So, go ahead, fire up your plans and fulfil your dreams. Finance should never be a hurdle on your growth journey.