Finin2min 📋 MSME Subsidy Pre-Check

(Before You Approach the Bank)

🧱 STEP 1 — MSME ELIGIBILITY (NON-NEGOTIABLE)

✅ Udyam Status Check

• Udyam Registration active & updated
• Correct classification:
  • Micro / Small / Medium (as per latest limits)
• Turnover + investment both within limits
• No mismatch with GST / financials

🚫 Red Flag
Old Udyam certificate or turnover crossed but not updated.

🧾 STEP 2 — SCHEME FIT TEST

Ask: Which schemes can I actually apply for?

🚫 Red Flag
Medium enterprises applying for Micro/Small benefits.

💰 STEP 3 — PROMOTER CONTRIBUTION TEST

• Promoter contribution fully banked
• No cash infusion
• Source visible in bank statement
• Reflected in ITR / balance sheet

🚫 Red Flag
“Cash introduced” → instant CGTMSE & subsidy rejection.

📊 STEP 4 — FINANCIAL VIABILITY CHECK

Bank Minimums (Reality)

• DSCR ≥ 1.20
• Net profit positive (or improving trend)
• Debt-equity reasonable
• Working capital gap justified

🚫 Red Flag
Assuming subsidy will fix weak cash flows.

📑 STEP 5 — DPR & PROJECT READINESS

• Project Report customised (not template)
• Conservative revenue assumptions
• Break-even analysis included
• Sensitivity (worst-case) scenario added

🚫 Red Flag
Copy-paste DPRs = silent rejection.

🧮 STEP 6 — GST & TURNOVER CONSISTENCY

• GST turnover matches financials
• GSTR-1 / 3B up to date
• QRMP/IFF strategy clear
• No unexplained GST gaps

🚫 Red Flag
GST data ≠ books → subsidy file stalled.

⏳ STEP 7 — TIMELINE AWARENESS

• Know scheme cut-off dates
• Asset installation timelines clear
• Subsidy credit lag (6–24 months) factored
• Cash flow survives without subsidy

🚫 Red Flag
Project depends on immediate subsidy credit.

🏦 STEP 8 — BANK HISTORY & CREDIT DISCIPLINE

• No NPA / SMA history
• No wilful default tag
• Previous restructuring disclosed
• Clean repayment behaviour

🚫 Red Flag
Past defaults kill subsidy-linked cases quietly.

🧾 STEP 9 — DOCUMENT HYGIENE CHECK

• Audited / provisional financials ready
• CA certificates in correct format
• Board resolutions (if company)
• Statutory compliances updated

🚫 Red Flag
Wrong CA format = months of delay.

⚖️ STEP 10 — LEGAL & STATUTORY ALIGNMENT

• MSMED Act payment terms enforced
• Samadhaan used (if buyer delays)
• No regulatory violations pending
• Licences / NOCs valid

🚫 Red Flag
Claiming MSME protection but never enforcing it.

🧠 FININ2MIN BANK TRUTH

If your unit can’t survive without subsidy,
the bank won’t lend even with subsidy.

Subsidies:

• Follow credit approval
• Reward discipline
• Punish inconsistency

✅ FINAL GO / NO-GO TEST

Ask yourself honestly:

• Can my unit repay loan without subsidy?
• Is my MSME status clean & current?
• Are all numbers bank-verifiable?

If YES → Approach bank confidently
If NO → Fix first, apply later

⚠️ DISCLAIMER

This checklist is indicative. Sanction depends on lender policy, scheme availability, budget allocation, and borrower risk profile.

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