MSME Loan

Following are the key MSME loan details:

MSME loan interest rates vary from one lender to another. For example, SBI SME loan interest rate starts from as low as 8.80% p.a. whereas HDFC MSME business loan interest rate starts from 11.90% p.a. Various factors are considered by lenders when deciding the interest rate on MSME Loan, including the applicant’s profile, credit score, age, income, turnover, business reputation, experience, and so on.   

If borrowers have a good credit score, they can get low MSME interest rates. A credit score is a three digit number generated by credit bureaus that summarize an individual’s credit repayment history. A credit score above 750 is usually considered good for MSME Loans, but that doesn’t mean you cannot get an MSME Loan with a lower credit score. You can still apply for a loan from some lenders even if your CIBIL score is 650 or above.

To get instant approval and an attractive interest rate deal on the MSME loan scheme, maintaining a good credit score is always helpful. 

• Instant approval and loan disbursal. 
• Affordable interest rates.
• The loan amount available is up to Rs. 1 Crore.
• No collateral or security is required for unsecured business loans.
• Repayment tenure varies from 1 to 15 years.
• Flexible repayment options are available.
• Minimal paperwork and hassle-free processing.
• Multiple types of schemes catering to all business-related needs of the borrowers.

Following are the detailed MSME loan eligibility:

• Eligible entities: Self-employed individuals, self-employed professionals, business owners, SMEs, MSMEs, women entrepreneurs, Private/ Public Limited Companies, Partnership Firm, Sole Proprietorship, and Limited Liability Partnership that are engaged in trading, services & manufacturing sectors.
• Minimum business vintage requirement to meet MSME loan criteria: 1 year.
• Minimum business turnover requirement: Varies from bank to bank
• Credit history: Good credit score and repayment history with financial stability

• Identity proof: Aadhaar card, passport, PAN card, Voter’s ID card, etc. 
• Residence proof: Rental agreement, utility bills, ration card, etc.
• Business address proof: Lease agreement, utility bills, or rental agreement. 
• Income proof: P&L account & balance sheet of last 2 years, income tax returns, sales tax return, PAN card, project report, etc.
• Proof of securities (if provided): Photocopies of title/ lease deeds offered as securities.

Many NBFCs (Non-Banking Financial Companies) in India offer MSME loan for startup business and to other customers at attractive interest rates. Following are some of examples:

Listed below are some of the most popular banks in India which offer MSME loans:

Calculating MSME Loan EMI is easy and instant with our business loan EMI calculator. All you need to do is follow the steps mentioned below:

• Visit MyMoneyMantra
• Click on the “Business Loan EMI Calculator” tab given under the “Financial Tools” section.
• Enter the required loan amount, the interest rate applied by the lending bank, and the tenure required to repay the loan.
• Hit the “Enter” button
• The result will be displayed on screen in an instant.
• Apart from the prospective EMI for MSME loan for new business, the calculator also provides Total Interest, Total Amount to be paid to the lender, and the complete amortization schedule for the loan.