Finance
MSME loans are credit facilities made available to MSMEs, individuals, startups, self-employed professionals, and other business entities for business expansion and day-to-day operations. Banks and NBFCs offer maximum loan amounts of up to Rs 2 crore (collateral-free loans) with repayment terms of up to 5 years. MSME loan interest rates will vary depending on the needs of the business and will differ from lender to lender.
A MSME Loan for New and Existing Businesses or Enterprises is a type of credit facility that comes in the form of a term loan (short, intermediate, or long-term), a working capital loan, an overdraft, cash credit, a letter of credit, bill discounting, and other funding products.
332 Total Views
Our Process
MSME Finance
MSME loans are credit facilities made available to MSMEs, individuals, startups, self-employed professionals, and other business entities for business expansion and day-to-day operations. Banks and NBFCs offer maximum loan amounts of up to Rs 2 crore (collateral-free loans) with repayment terms of up to 5 years. MSME loan interest rates will vary depending on the needs of the business and will differ from lender to lender.
A MSME Loan for New and Existing Businesses or Enterprises is a type of credit facility that comes in the form of a term loan (short, intermediate, or long-term), a working capital loan, an overdraft, cash credit, a letter of credit, bill discounting, and other funding products.
Numerous financial institutions provide micro, small, and medium enterprise (MSME) loans to startups, self-employed professionals, MSMEs, business owners, sole proprietorships, private and public limited companies (PLCs), partnership firms, limited liability partnerships (LLPs), and other business entities in the services, manufacturing, and trading sectors.
- Completed application form with passport-sized photos
- KYC documents for the applicant and co-applicants, which include a passport, an Aadhar card, a voter ID card, a driving licence, a PAN card, and utility bills (telephone and electricity bills).
- Company Address and Vintage Proofs
- Bank statement from the previous six months, along with bank information
- Certificate of Business Establishment or Letter of Incorporation
- Proof of membership in the SC/ST or OBC categories, if applicable.
- Any additional documentation required by the bank/NBFC
- There are two methods for submitting an application for an MSME loan. If the lender has an online application, you can fill out the form with the necessary information and submit it through the website.
- Alternatively, you can go to your nearest branch and ask for an application form. You can call ahead and inquire about the documentation requirements.
MSME Loan Interest Rate Influencing Factors
The interest rates on MSME/SME loans offered by various private and public sector banks, non-banking financial companies (NBFCs), small finance banks (SFBs), regional rural banks (RRBs), and microfinance institutions (MFIs) are determined by the following factors:
- Income, credit/CIBIL score, financial history and stability, creditworthiness, and repayment capability of the applicant
- Loan amount and repayment period desired
- Annual business turnover and profitability.
- The credit rating of the company, the nature, tenure, volume of business, and so on.