MSME Loans stands for Micro, Small, and Medium Enterprises. It is an unsecured loan provided by various financial institutions and NBFCs to help an applicant to buy and expand their business. It involves working capital requirements, purchasing raw materials, equipment, and machinery, Payment of salaries, rent, or any other daily expenses, investment in Fixed assets, other financial purposes, and management of cash flows.
MSME unsecured business Loan Eligibility Criteria:
Eligibility for MSME loan for a new business, an applicant can get such type of loan for the evolution of basic structure to meet the business necessities such as – purchase machinery and new equipment, or daily equipment capitals. Eligibility depends on several factors i.e., business turnover, repayment history, age of an individual, creditworthiness and total work experience, etc.
The Minimum age of an individual is 22 years and the maximum is 60 years of age.
Business continuity of minimum 2 years.
Audit by registered Chartered Accountant for minimum 1 year.
Minimum Business turnover must be 90,000.
Partnership firms, Limited Liability Partnerships, Trusts, Private or Public companies, Proprietor concerns of an Individual.
Details of MSME Loans:
MSME unsecured business Loan is very easy to get, the procedure is flexible and easy-going.
An applicant can get MSME Loan without pledging any security or collateral.
It aimed to help out small businesses or raise their production.
There is less paperwork and the disbursal of the loan amount is very fast.
MSME Loans have a low rate of interest.
Generally, there are no pledges for the long-term. MSME Loans are used by the business for short-term needs.
MSME Loan Interest Rate
Up to 2 crores
Compare MSME Loan Interest Rate offered by Top Banks
Bank of India
HDFC Bank Ltd.
Axis Bank Ltd.
Punjab & Sind Bank
Bank of Maharashtra
Central Bank of India
Indian Overseas Bank
Bank of Baroda
Punjab National Bank
Union Bank of India
State Bank of India
United Bank of India
Standard Chartered Bank
SIDBI (Small Industries Development Bank of India)