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MSME Loan

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About MSME Loan

Micro Small and Medium Enterprises (MSMEs) have been accepted as the engine of economic growth and play an important role in the equitable economic development of a country. MSME Loans are obtainable by any MSME business to expand and purchase their business. It would entail purchasing machinery and equipment or raw materials, meeting working capital requirements, investing in fixed assets, payment of rent, salaries and other daily or monthly expenses, management of cash flows and any other financial provision for operational purposes.

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Documents Required for MSME Loan

    Personal Documents
  • 1. Duly filled application form
  • 2. Three passport size photograph of the individual borrower/directors/partners
  • 3. Two passport size photograph of the guarantor (if required)
  • 4. Ownership documents of security (if any)
  • 5. Copy of Partnership deed/Copy of MOA and AOA
    Other Documents
  • 1. Last 3 years ITR
  • 2. Trade license or any other regulatory license applicable to unit
  • 3. Last 6 month bank account statement.
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MSME Loan – Features, Fees & Interest Rates

Interest Rate:

Depending on the applicant’s profile and business requirements

Loan Amount:

Minimum Limit to borrow is Rs. 30,000 and the Maximum is up to Rs. 1 crore, which can exceed business requirements

Repayment Tenure:

From 12 months – 5 years

Collateral:

Not required for Unsecured Business Loans

Processing Fee:

From Nil to 4% of the loan amount

Foreclosure Charges:

From Nil to 5% of the outstanding principal amount

Part-payment Charges:

From Nil to 4% of the outstanding principal amount

Credit Facilities:

Working Capital Loan, Bill discounting, Overdraft, Cash Credit, Letter of Credit, Bill of Purchase, Merchant Cash Advance, etc.

Get financing for whatever you need now

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Features and Benefits of MSME Loan

Through an MSME Loan, micro small and medium business owners can use the funds effectively to expand their business or even set up an additional arm of their current business. Below are some of the features and benefits of an MSME Loan:

  • • An MSME loans facilitate extensive credit flow in the MSME sector.
  • With MSME loans, businesses can upgrade their technology to meet their small business sector requirements.
  • MSMEs loans offer a comprehensive development competence for the small scale industries through skill development and training packages.
  • MSME loans are offered to all borrowers associated with small scale industries such as Sole Proprietorship Firms, Partnership Firms, Private Limited Companies, and Public Limited Companies. Further, Manufacturing or service-based micro and small enterprises are eligible excluding Retail traders, educational institutions, training institutions, agriculture & Self Help Groups
  • The tenure of an MSME loan is for a maximum period of 15 years.
  • MSME loans are offered as secured and unsecured loans. The choice depends on the borrower his repayment capacity and the requisite terms and conditions of the bank.

MSME Loan - Eligibility

Self-employed professionals: Doctors, CAs, Company secretaries, accountants, architects etc

Self-employed non-professionals : Manufacturers, traders, retailers, proprietors, service providers etc.

Business entities : Private, LLPs, closely-held companies and partnerships In addition;

One must be an Indian citizen and resident of age 25 to 65 years.

Running of business of minimum 3 years

Good repayment history with financial stability

FAQ

Applicants can avail the MSME loan of up to Rs. 45 lakh within 2 days. Exclusive pre-approved offers help MSMEs avail financing instantly.

The simple steps to your MSME / SME Loans:

Submit Application. Simply enter your personal, business and financial info to receive a MSME / SME Loans offer.

Upload Documents. Upload digital copies of your documents in a single step process for verification.

Get Sanctioned.

The MSME enterprise should be in business for over a year and its annual turnover should be greater than INR 24 Lakhs.

Individuals, SMEs, MSMEs, business owners, women entrepreneurs, self-employed professionals, and people falling under SC/ST/OBC category can apply for MSME loans.

Private or Public Limited Companies, Sole Proprietorship, Partnership Firm, and Limited Liability Partnership engaged only in trading, services, and manufacturing sectors are also eligible.

Ans. Yes, having a good credit score that is above 750 is always an added advantage when applying for MSME loans.

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To apply for your required loan scheme, provide the necessary details in the application form below.

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