The small companies and enterprises are expanding their business, increasing their productivity, updating technology and also improving marketing campaigns along with hiring new personnel, day-by-day. Hence, proper funding is required at each step and in order to stay ahead of other competitors. The loan helps organisations to achieve the following:
•Establishing new branches of the company
•Renovating the existing infrastructure of the
organisation
•Buying new equipment and machines for business
operations
•Restoring the inventory items
•Improving and energizing the marketing of the products
•Enhancing the security measures of the organisation in order to prevent risks or threats or vulnerabilities
Nowadays, there are a lot of finance companies available which can help you by providing the sufficient fund. You can also take help of the financial advisor before choosing the best among all the available options. Such personnel can aware you of the benefits and drawbacks of all the options available.

The range of loan offered to the SMEs depends upon the turnover of the company. It starts from Rs. 5 lakh and can go up to Rs. 1 crore, and even higher.

Now, let us understand the process of applying for an SME loan. The process of applying for an SME loan is very simple and easy. While applying for a loan, the SMEs are required to submit the following documents:
•The SMEs are required to submit the GST returns for the
last one year.
•The SMEs are required to submit the ITR and other
financial documents for the last two years.
•The SMEs are required to submit the KYC documents for
the business and the business owner.
•The SMEs are required to submit the bank statements for
the last six months.
• The SMEs are required to submit the loans or overdraft
sanction letters if any.

After applying for an SME loan, the chances for approval depend upon several factors. These factors facilitate the loan approval. Some of the important factors are as follows:
•The enterprise must be functional or operation from last
3 years.
•The annual turnover of the enterprise must be more than
Rs. 1 crore.
•The total CIBIL score of the enterprise must be more
than 650.
• The information provided by the enterprise at the time
of application must be updated and accurate.

Author's Bio: 

Vaibhav Mishra
Co-Founder, CEO & COO

Vaibhav is Co-founder of MudraCircle who brings in 18 years of strong mix of passion and deep knowledge of the knowledge of the SME Lending, Retail Branch Banking, Wealth management and
Insurance space