MSME stands for Micro Small Medium Enterprise. MSME provides lower interest rate business loans. You can get up to 50 lakh loans through MSME.
But, how to you will get this loan?
We will discuss step by step to get MSME Business Loan.
What is MSME Loan?
MSME loan is a credit facility provided by financial institutions in the form of a business loan to people, MSMEs, and startup businesses to expand their businesses and promote the MSME sector.
Unsecured loans are available for small businesses. There are some basic eligibility criteria for MSME / SME Loans to decrease the risk for lenders.
MSME loans are given to business owners to run their businesses.
Eligibility for MSME Business Loan
- You should be between the ages of 18 and 65.
- Your credit score of 700 or above is required.
- Good Credit repayment history
- Private and public limited companies, Sole Proprietorship, Partnership firms, and Limited Liability Partnerships are eligible to apply for an MSME loan.
- Business should be 6 months old
Documents Required for MSME Business Loan
You should be following documents required for MSME Business Loan:
- KYC documents like the Aadhaar card, Voter card, Pan card.
- Last 12-month bank statement.
- Business registration certificate
- IT File
- GST File
- MSME Certificate
Extra Benefit of MSME Business Loan
|Low-Interest Rate||Interest starts from 6.70% to 28% (depend on the bank)|
|High Loan Amount`||Get up to 1 cr. Loan|
|Loan Tenure||From 1 year to 5 years|
|No Extra Charge||Don’t need to pay extra charges like insurance or other charges.|
|Processing Fees||From 2% to 5% of the loan amount|
|Government Subsidy||Some banks offer government subsidy|
|Less Paper Work||Only need KYC & Business documents for MSME Loan|
MSME Loan Popular Government Scheme For this year 2021
Popular MSME Government Scheme loans are:
- MUDRA Yojana under PMMY
- National Small Industries Corporation (NSIC) Subsidy
- PMEGP: The Prime Minister Employment Generation Programme
- PMRY: Prime Minister’s Rozgar Yojana
- PSB Loans in 59 minutes
- Standup India
- Startup India
How to Calculate MSME Loan EMI
The EMI calculations for MSME / SME Loans is done using a simple formula, E = P x r x (1+r)n/(1+r)n-1.
- The EMI is represented by the letter ‘E’.
- The letter ‘P’ stands for the loan amount.
- The interest rate given every month is denoted by the letter ‘r.’
- The loan’s duration is denoted by the letter n.
You will get the quick result through the MSME Loan calculator. Just put your loan amount, interest rate, and loan tenure and hit the enter button.
You will see the result with a colorful pie chart. You will understand quickly how much amount needs to pay with the total amount and interest rate.
How to Apply for MSME Business Loan
You can apply for an MSME business loan to visit your nearest bank.
You can apply online from below the link.
Just click on Apply Now button and fill in your business details online. Bank will contact you directly.
|SBI MSME Loan||Apply Now|
|Bajaj Finserv MSME Loan||Apply Now|
|UBI MSME Loan||Apply Now|
|BOB MSME Loan||Apply Now|
|PNB MSME Loan||Apply Now|
|Axis Bank MSME Loan||Apply Now|
Also Read: Get up to 2 lakh loan
MSME Loan Interest Rate
|Kotak Mahindra Bank||15%|
|Tata Capital Finance||18%|
|IDFC First Bank||20%|
|HDB Financial Services Ltd.||22%|
MSME Customer Care
MSME Toll-Free No: 1800-123-7376. If you have any quires, you can call for support.
FAQs MSME Business Loan
Who can apply for MSME Loan?
MSME is a business-oriented loan. If you are a business owner, you can apply for a loan.
Is MSME loan interest-free?
No, you will need to pay a pacific interest rate on your loan amount. Some banks give subsidies under the government scheme.
Are you need MSME registration?
Yes, you should MSME registration through your business details. This will helpful for easy loan approval.
What type of loan I can get under the MSME scheme?
You can get a manufacturing, machinery loan. Also, raw materials and other business loans are available.