Scheme-Wise Bank Document Packs (Finin2min Playbook)
Rule of thumb: Banks process credit first → subsidy/guarantee is layered after sanction.
Missing even one “basic” document = delay or rejection.
1️⃣ CGTMSE — Credit Guarantee (Micro & Small Enterprises)
📌 Purpose
Collateral-free loans backed by government guarantee (75–85%).
📂 Bank Document Pack
Core Business Documents
- Udyam Registration Certificate
- PAN (Entity + Proprietor/Directors)
- GST Registration (if applicable)
- MOA/AOA / Partnership Deed / LLP Agreement
Financials
- Last 2–3 years ITRs (entity + promoters)
- Audited financials (or provisional, if new)
- Bank statements (last 6–12 months)
Credit Proposal
- Project report / cash-flow statement
- Loan application form (bank-specific)
- KYC of all promoters
CGTMSE-Specific
- Declaration for collateral-free loan
- Undertaking: no third-party guarantee
- Consent for CGTMSE fee debit
🔍 Common Bank Objection
“Promoter net worth not matching loan size”
➡ Fix by attaching personal balance sheet of promoters.
2️⃣ PMEGP — Margin Money Subsidy (New Units Only)
📌 Purpose
15–35% capital subsidy for new micro enterprises.
📂 Bank Document Pack
Eligibility Proof
- Udyam Registration (new unit)
- Aadhaar + PAN
- Caste / Minority / Special Category certificate (if applicable)
Project Documents
- Detailed Project Report (DPR)
- Cost break-up (land, building, machinery, WC)
- Quotations for machinery
Banking
- Bank account opening proof
- Sanction letter from financing bank
PMEGP-Specific
- KVIC / KVIB / DIC application acknowledgement
- Entrepreneur training completion certificate (EDP)
⏱ Timeline Reality
- Subsidy credited after unit setup + verification
- Lock-in: 3 years (cannot close unit)
3️⃣ MUDRA (Shishu / Kishor / Tarun)
📌 Purpose
Small-ticket, collateral-free business loans.
📂 Bank Document Pack
- Udyam Registration
- Simple business proof (shop act / GST / trade licence)
- Last 6 months bank statement
- Identity & address proof
⚠ Important
- No direct “subsidy”
- Treated as priority-sector lending
4️⃣ Stand-Up India (SC/ST / Women Entrepreneurs)
📌 Purpose
₹10 lakh–₹1 crore loans for greenfield units.
📂 Bank Document Pack
- Udyam Registration
- SC/ST certificate / Woman ownership proof
- Detailed DPR
- Margin contribution proof (min 10%)
- Land/lease documents (if applicable)
🔍 Bank Focus Area
“First-time entrepreneur viability”
➡ Strong cash-flow projections are critical.
5️⃣ CLCSS — Technology Upgrade Subsidy
📌 Purpose
15% capital subsidy (max ₹15 lakh) for eligible machinery.
📂 Bank Document Pack
- Udyam Registration (Micro/Small only)
- Machinery invoices (approved technology list)
- Term loan sanction letter
- CA certificate for asset capitalisation
⚠ Ground Reality
- Central CLCSS largely phased out
- State-level technology subsidies now more active
6️⃣ CGSS — Credit Guarantee for Startups (DPIIT)
📌 Purpose
Guarantee support for DPIIT-recognised startups.
📂 Bank Document Pack
- DPIIT Startup Recognition Certificate
- Udyam (if applicable)
- Pitch deck + business model note
- Bank sanction proposal
📌 Coverage
- Typically up to ₹5 crore per case
- Parallel to CGTMSE (not overlapping)
7️⃣ Export Support Package (₹7,295 Cr)
📌 Purpose
Interest subvention + risk support for MSME exporters.
📂 Bank Document Pack
- IEC (Import Export Code)
- Export orders / LC / invoice copies
- GST returns (GSTR-1, 3B)
- Packing credit / PCFC sanction
🧠 Tip
Banks prefer confirmed export orders, not projections.
8️⃣ MSME Samadhaan (Delayed Payments)
📌 Purpose
Recovery of dues beyond 45 days + statutory interest.
📂 Filing Pack
- Udyam Registration
- Invoices + delivery proof
- Agreement / PO
- Buyer details (PAN, GSTIN)
⚖ Award enforceable as civil decree
🔴 Why Banks Reject MSME Subsidy Claims (Reality Check)
❌ Udyam not updated (turnover/investment mismatch)
❌ Weak promoter ITR vs loan size
❌ No proper DPR / unrealistic projections
❌ GST non-compliance
❌ Past loan restructuring not disclosed
❌ Mixing personal & business bank accounts
✅ Finin2min Bank-Ready Checklist (One-Look)
✔ Updated Udyam
✔ Clean GST + ITR filing
✔ Separate business bank account
✔ DPR aligned with financials
✔ Promoter net worth documented
✔ Scheme-specific declarations ready
🧠 Finin2min Takeaway
Subsidies don’t fail because schemes are weak.
They fail because documentation is sloppy.
Banks lend to clarity + compliance, not to intent.
⚠️ DISCLAIMER
This article is based on validated statutory provisions, budget documents, scheme guidelines and judicial interpretation available up to FY 2025-26. Scheme terms may vary by lender, state policy or subsequent notification.
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