Why The Majority of MSME Loan Applications fail even Before they are Read.
Majority of the MSME loans rejection occur before the bank opens the file.
Not due to the fact that business is weak.
However, due to one important omission made by the entrepreneurs: preparation.
Founders do not usually apply with:
– Organization of projected cash flow.
– Making their business fit in the appropriate scheme.
– maintaining financial records in order.
The loans provided by the government such as CGTMSE, PMEGP, Mudra and Stand-Up India are meant to ease the financial burden. But banks still evaluate:
• Business viability
• Credit history
• Repayment capacity
• Industry risk
Planning is always better than hurry.
The MSME schemes and documentation are made simpler with the help of such platforms as Saarthi, and the founders can approach funding with confidence.