Give us a missed call on

+91 626 955 5606

Table of Contents

If you are a business owner, and have applied for MSME loans through banks and NBFCs, then you know that there are general and specific documents required for MSME loans application. MSME loans are designed to provide short term business loans to MSMEs for growth. Any business applying for these loans must meet some basic eligibility criteria and submit MSME loan documents for the lender to verify and process the application.

On that note, let us learn about MSME loan schemes in India and take a look at some of the required documents for MSME loans online and offline application.

Documents required for MSME loan application in India

Document submission is an important aspect of the loan approval process. Most MSMEs often lack assets and long-term credibility, which makes it risky for lenders to offer loans, fearing default. Having the right MSME loan documents builds confidence in the borrower, accelerating the loan approval process.

An important thing to remember is that whether you are starting a new business or want to grow your existing business, you can avail a MSME loan with the right documents in place.

The list of documents for MSME loan can vary based on the type of loan you are availing and the bank/NBFC you are availing it from. For instance, the documents required for a MUDRA loan is different from PSB loans in 59 minutes.

We have listed some of the common documents required for MSME loan application. This list can be used as a checklist to help you stay prepared and is not an exclusive list. The respective lending entities may request for additional documents to support your loan application.

General documents required for MSME/SME loans in 2022-2023

These refer to the standard documents that are required in loan application. These include documents on personal identification proof, address proof, business entity proof, financial statements, basic KYC details, and other relevant certificates.

Document category Accepted documents
Application form
  • Filled in and signed loan application form (required for both online and offline application)
  • Photographs of applicants (usually passport size photo, self-attestation optional)
  • Signature and photographs required for all applicants
Personal identification proof

(usually, photo-based ID proof is required)

  • PAN and Aadhaar card (can be used for age-proof when age criteria is applicable)
  • Passport
  • Driving licence
  • Voter’s ID etc.
Address proof

(any 1-2 document as requested)

  • Utility bills such as electricity/water/phone bill
  • Ration card or voter’s ID
  • Rental or lease agreement
  • Trade licence
  • Govt. bank account passbook etc.
Financial and tax documents

(Bank/NBFC to determine which documents to accept)

  • 2-3 years ITR
  • CA audited balance sheet or P/L statement
  • Turnover certificate from CA
  • 6-12 months bank statement, etc.
Business existence proof

(for MSME loans, unsecured business loans etc.)

  • GST certificate
  • Shops & Establishment certificate
  • Gumasta certificate
  • Trace licence or Drug licence
  • VAT or sales tax certificate
  • Business incorporation certificate, partnership deed, Memorandum of Association etc. as applicable to business
MSME registration certificate
  • MSME registration/Udyam registration (when applicable)


Other documents required:

In addition to the documents mentioned above, there are other documents that may be requested, such as:

  • Business plan: To evaluate the business’s financial health, ability to repay on time, funds allocation plan, growth forecast, product portfolio etc. to reduce the lender’s risks
  • Ongoing loans declaration: To understand if there are loans outstanding or fully paid and determine the current loan amount to be disbursed

Most banks and NBFCs in India offer loans for start-ups and small businesses to enable their growth. These are usually hassle-free loans with less paperwork, flexible repayment terms, and approved and disbursed in less time. There are also government loan schemes for small businesses that can be availed.

MSME loan application: Documentation and things to keep in mind

  • There are some basic documents that all lenders require, and others that are specific to loan type and amount. As a borrower, before you apply for a business loan, read the list of documents required carefully and plan.
  • Considering the general shift towards online loan application and disbursement, it is recommended to have loan documents pdf and image softcopy (.jpeg or .png) for easy upload.
  • A secret to getting your loan application sanctioned is to have your documents in one place.
  • There are different types of MSME loans, with varying degrees of documentation. Try to apply for loans that require minimal documentation for quick loan approval and disbursal.
  • The online loan application has made it easier for borrowers to learn about different types of MSME loans, compare loan interest rates, loan tenure, security required, and other details before applying.
  • The loan application system has also made it easer for lenders to verify documents online, check borrower’s creditworthiness, and make a faster, safer decision on loan approval/denial and disbursal.
  • The eligibility for business loans also should be considered. Considering that banks offer different types of loans (e.g., working capital loans, equipment finance, etc.) the eligibility may differ from time to time.

For instance, if you apply for unsecured business loans through Tata nexarc, you can get offers (of up to ₹50 lakhs) with minimum documentation. These are collateral free loans, offered on the basis of the borrower’s creditworthiness and the business’s financial health, and require basic documentation such as 12 months bank statement, proprietor’s PAN and Aadhaar card, business proof, and ownership proof among others.

The key thing to remember is that when you apply for a loan, your documents will be thoroughly verified and checked. The more organised and authentic your documents are, the greater your chances of having your application approved.

Business Loan
In FY22, a total of ₹37.29 trillion in loan amount was sanctioned to MSMEs in India (Source: Report by CRIF High Mark).

Closing thoughts

An important thing to keep in mind is that the approval or rejection of a loan is not based on a single document. It is based on the sum of all documents provided to establish your creditworthiness and your business’s ability to repay the loan in time.

As such, if you are looking at expanding your business and require funds for it, keep your MSME loan documents up-to-date and accurate, to ensure that your application is processed with ease.

FAQs on MSME loan documents requirements

While application to government loans and MSME schemes are straightforward, we look at some commonly asked questions on loan documentation.

Where can one get a MSME/SME loan?

You can get a MSME loan from:
  • Private and public sector banks: E.g., State Bank of India business loans, Allahabad Bank, Punjab National Bank, Indian Bank, UCO Bank, HDFC Bank business loans, Axis Bank among others
  • Non-banking financial companies (NBFCs): E.g., Mahindra Finance, Fullerton India, Muhoot Fincorp, Bajaj Finserv, Lendingkart, Tata Capital Finance, Hero Fincorp among others
You should also consider availing government MSME loans. There are different loan schemes for you to avail based on your business needs. Most lenders require a standardised set of documents for business loan application, though in case of specific loans, additional documents may be required.

Are collaterals required for getting MSME loans?

If you are availing unsecured business loans, then no collateral is required as security. These loans are given based on the company’s financial health and the creditworthiness of the borrower. However, if you are availing high value loans or long-term loans, you may be required to put up assets as collateral against the loan. In such cases, you will also need to submit asset ownership documents (e.g., land, property, etc.) to prove that the asset is owned by you and there are no other loans/debts on it. In certain cases, lenders do not request additional collateral. E.g., in case of commercial vehicle loans, the vehicle purchased acts as collateral for the loan, in case of non-repayment.

Is ITR document required for MSME loans?

ITR document or income tax returns document is one of the important documents required for availing MSME loans. It builds financial credibility and helps to get loans at lower interest rates. At times, without ITR document and income proof it is often difficult to get loans from banks and NBFC due to regulatory requirements and risk of non-repayment. As such, if you do not have ITR documents, check with the lending body. If you have a good credit score, and your other documents are in place, your chances of getting loans without ITR are higher.

What is the minimum CIBIL score for getting MSME loan?

It is recommended to have a CIBIL score of 750+ when applying for a MSME loan. CIBIL score helps banks to determine your creditworthiness. As such if you have a low CIBIL score (e.g., 600-750), the process may get delayed, or you may be asked to provide collaterals as security.

Is GST compulsory for MSME loans?

GST certificate is an important document for availing loans and other financial aids. When applying for loans, banks/NBFCs require it when the loan amount is high. When the loan amount is small, especially for unsecured business loans, GST certificate is optional (though recommended). Note: Certain lenders also provide GST business loans - i.e., loans based on your GST rerecords.

What are the basic 5 documents required for MSME loans?

Keep these necessary documents handy to get business loans:
  • PAN and Aadhaar card: For name, date of birth, photo-identity, address, phone number, and ITR/CIBIL details (i.e., personal KYC detail)
  • MSME certificate/Udyam registration: To ensure you have registered your business as a MSME in India
  • Business licence, last 3 months utility bills, GST certificate, trade licence: To establish your business’s formation and address proof
  • CA audited P/L sheet or balance sheet, ITR returns, 2-3 years bank statement, sales tax certificate: To evaluate your business’s financial health, debts, profitability, ongoing loans, cash flow etc.
  • Duly filled in application form with photographs and signature of all applicants


Sohini Banerjee

Sohini is a seasoned content writer with 12 years’ experience in developing marketing and business content across multiple formats. At Tata nexarc, she leverages her skills in crafting curated content on the Indian MSME sector, steel procurement, and logistics. In her personal time, she enjoys reading fiction and being up-to-date on trends in digital marketing and the Indian business ecosystem.