What is ZED Rating | Another benchmark for MSMEs and Banks in India

The government of India has just introduced ZED rating that is Zero Defect and Zero Effect to enforce manufacturing units to aim better quality,productivity, energy and pollution mitigation. When I say enforce, don't get panic as its not mandatory but you should login on www.zed.org.in to register yourself.
Objectives of ZED

1. Manufacturing with Zero defect processes with zero defect on environment.
2. To upgrade quality standards constantly
3. To support 'Make in India' 

Benefits of Zed Rating.
1. Streamlined operations and lower costs
2. Superior quality reduced rejection and higher revenues.
3. Increased environmental consciousness and social benefits.
4. Credible recognition of MSMEs for international investors seeking investment in India.
5. "Zed Mark" to enable MSME units to be seen as a company/firm with a difference.

QCI Quality Council of India will give you final certificate after reviewing the site assessment report.

All MSMEs which are registered can participate in this scheme. Registration can be done via the UAM of Minister of MSME http://udyogaadhaar.gov.in/UA/UdyogAadhar-New-aspx The Scheme is applicable in all states /UTs of India.

Please note that Banks in India are formulating a policy to consider ZED rating for granting the loans so if you want to avail new finance or go for enhancement Banks my consider you to go under ZED rating which may become mandatory in future. Indian banks association, Mumbai has already communicated to the bank to start considering the ZED rating though not on compulsory levels. Soon the ZED rating will be rolling for MSMEs in the service sector, as presently it is applicable for manufacturing MSMEs only.  

How to avail Education Loan from Banks & Documents Required

To avail education loan is easy especially if your requirement amount is below 4 lacs.

Following are the details regarding security which is common to every bank and no bank can change it as it is set by RBI to ensure good service to citizens. Please ref

https://rbi.org.in/scripts/NotificationUser.aspx?Id=369Security

Particular	Security
Upto Rs. 4 lacs loan amount	Only Parent/ Guardian as co-borrower
Above Rs. 4 lacs to Rs. 7.50 lacs loan amount	Parent/ Guardian as co-borrower and Collateral security in the form of suitable third party guarantee*. *Third Party Guarantee can be replaced with Parent/Guardian as co-borrower provided the Gross Annual Income of Parent/Guardian (co-borrower) as given in latest Income Tax Return is 3 times of the loan amount.
Above Rs. 7.50 lacs loan amount	Parent/ Guardian as co-borrower and tangible collateral security

In case of married person, co-obligator can be either spouse or the parent(s)/ parents-in-law

Documents Required (List is common to every bank including private banks)

• Original Letter of admission

• Completely filled in Loan Application Form

• 2 passport size photographs

• Original Statement of cost of study which is FEES STRUCTURE given by college

• PAN Card of the student and Parent/ Guardian not mandatory for student in most of the bank 

• AADHAR Card of the student and Parent/ Guardian

• Proof of identity (Driving Licence/Passport/Aadhar/ any photo identity)

• Proof of residence (Driving Licence/Passport/Electricity bill/Telephone bill)

• Student/Co-borrower/ guarantor's bank account statement for last 6 months

• IT return/ IT assessment order, of previous 2 years of Parent/ Guardian/ other co-borrower (if IT Payee) or Income certificate given by STATE government to poor people whose children want to pursue higher education

• Brief statement of assets & liabilities of Parent/ Guardian/ other co-borrower

• Proof of income (i.e. salary slips/ Form 16) Parent/ Guardian/ other co-borrower

For people who doesn't earn above 4 lacs can avail interest subsidy from government time to time.

Every bank need to process or reject education loan in 15 days as time line set by most of the banks and closely monitored by RBI.