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MSME LOAN
- Amount to suit various business needs
- Flexible tenure for easy repayment
- Competitive interest rates
- Transparent processing
Grow with MSME Loan From Indifi
50K to 50 Lacs
Amount to suit various business needs
Upto 36 Months
Flexible Tenure for easy repayment
Starting @1.5% PM
Competitive Interest Rates
No Hidden Charges
Transparent Processing
Get upto 50 lacs with Quick Disbursal
We work with specific segments and use our understanding to make loan better
Quick & Simple
Minimum documentation. No collaterals
Multiple Lenders
One application. Multiple lenders. Increased chances of loan approval
Best Fit
Specific loan products. For specific business needs
Flexible & Transparent
Choice of loan tenure & repayment modes. No hidden charges
MSME Loan Details
MSME/SME Loans
In India there are around 4,00,42,875 MSME's are registered and the numbers are increasing day by day. MSMEs play an important role in the Indian economy but, these businesses often have trouble getting financial help to grow or expand business, which makes it harder for them to succeed. This requirement can be for raw material purchase, infrastructure development, or fulfilling operating expenses. It is at the discretion of the business from where they decide to borrow money, as per their needs and priorities.
However, businesses also have the option of obtaining funds from different borrowing instruments. MSME loan are unsecured loans offered by various financial institutions ,banks, or government-backed programs to meet business-related expenditures on credit. These loans have specific rules to reduce risks for lenders.
MSME loan are also referred to as SME (small and medium enterprise) loans. Usually, these msme loan are granted to small business owners, startup owners, and women entrepreneurs with subjective loan tenure. Here are some of the salient features, benefits, eligibility, and smart usage of MSME loan funds.
Features of MSME Business Loan
MSME loan can offer funds for many crucial functions that are responsible for the development of a company. For instance, they can save their time by filling an online application form and confirming their requirements. They need not follow a long approval procedure while loan application on digital platforms.
Here are some attractive features offered by digital lending platforms to its applicants:
- Online Application:
Digital lenders use a quick process to approve MSME loan applications without delays and approval process. Online loan generally get approved within a few working days, provided eligibility criteria are fulfilled.
- Amount and Tenure of MSME Loan:
Business owners can avail a msme business loan on GST up to 50 lakhs. Also, the majority of digital lending platforms adopt a flexible approach when it comes to repayment of MSME loan. They generally follow tenure of 12 to36 months, to allow the businesses to repay it as per their preferred schedule.
- Hidden Charges:
Availing MSME loan from digital lenders don’t come with any hidden or extra charges.
- Flexible Repayment Option:
Digital lenders offer ample of time and repayment options to its MSME/SME applicants. The MSME loan tenure range Upto 36 months. Applicants also have an option to repay in EMIs or bi-weekly or monthly installments.
SME / MSME Loan Interest Rates & Fees
| Customized Interest Rates | Starting @1.5% PM |
| Processing Fees | up to 4% |
| Loan Tenure | Upto 36 Months |
| Pre-closure Charges | 4% |
| Eligibility Criteria | Mandatory GST Registration and Filing |
| Loan Amount | Upto 50 Lacs |
| Installments | Monthly |
Benefits of MSME Business Loan
What are the benefits of MSME business loan application from a digital lender? Keep reading to know more about it.
- Competitive Interest Rates:
The best part about applying MSME loan online is the competitive interest rates. Digital lenders follow an online loan application process that is both time-saving and resource-saving. In this turn, it helps them in saving costs and offering competitive interest rates for MSMEs.
- No Collateral:
MSME loan are unsecured loans. In other words, You don’t need to give any assets as security for an SME loan.
- Quick Funding:
Applicants can expect MSME loan sanction within a couple of days. Fund disbursal will also be done at a rapid rate. What more can they ask for? They need not wait for weeks or months to get their msme loan applications sanctioned.
- Complete Control:
MSME are unsecured loans for the applicant who meet certain eligibility criteria. The applicants do not lose their ownership and control over their assets. They can use these assets to grow their business further.
- Better Capital Management
Loan applicants can expect peace of mind by applying for msme loan without collateral from digital lenders. They can invest the funds in plant and machinery or streamline their cash flows and working capital.
- Enhance Goodwill
Every business needs the right boost to grow and succeed. SME loan are the perfect medium that can help such enterprises grow at the appropriate time. This will enhance their credibility and goodwill in the market. This will open more avenues for business finance and investments.
MSME Loan Eligibility Criteria
MSME loan rules can change based on the lender and loan type. However, here are some general criteria that every lender follows
You should be between 22 - 65 years of age to be eligible for an NBFC business loan
You must be a citizen of India
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You need to have a healthy credit score for your business, along with your personal credit score which should be typically above 650-700
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Your MSME business should have been formed as a partnership firm, Pvt. Limited company, sole proprietorship, or limited liability partnership
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Your MSME turnover should be between Rs. 25 lakh - Rs.50 crore, depending on the lender and loan product
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Your business must have been operational for at least 1 year
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IT returns are filed on time for the last one years
GST returns are filed for the last 6 months on time
Documents Required For MSME Loans
| Documents | Proprietorship | Partnership | Pvt. Ltd. / LLP / One Person Company |
|---|---|---|---|
| Bank statement ( last 6 months) | Yes | Yes | Yes |
| Business registration proof | Yes | Yes | Yes |
| Proprietor(s) PAN Card Copy | Yes | Yes | Yes |
| Proprietor(s) Aadhar Card Copy | Yes | Yes | Yes |
| Partnership Deed Copy | No | Yes | No |
| Company PAN Card Copy | No | Yes | Yes |
How to Apply MSME Loan Online
Here are the three easy steps to get an MSME loan online
- Application:
- Documents:
- Sanction:
Applicants who wish to secure a MSME loan can fill in this online application form giving details about their fund requirements
The next step is to upload relevant documents like bank statements, PAN Card copy, Adhaar Card copy, Business Registration Certificate, GST Filing, Drug License, Trade License, TIN, and VAT Registration.
Applicants can expect a loan application approval the moment all their documents and other submissions are verified.
Why Should Enterprises go for MSME Business loan?
MSME sector is one of the largest sources of industrial output and employment in India. Around 40% of the total country’s exports and 45% of the total industrial production comes from this section. Therefore, the MSME sector has always showcased a high demand for business finance.
Inability to secure finance at the right time is one of the biggest issues faced by various small and medium scale enterprises in the country. However, (NBFC) non-banking financial companies are a promising alternative for the manufacturers who wish to secure business finance immediately. Applying online for an MSME loan is quick and simple.
Strategic ways to maximize business fund utilization:
Do’s and Don’ts While Applying For MSME Loan Scheme Online
Here are some simple tips that will increase the chances of securing an SME/MSME loan for the applicant, by reducing the risk of rejection.
Do’s
The applicant must cross-check all the compulsory documents required for this process
Applicants should check their credit score as some digital lenders consider it at the time of sanctioning the MSME loan amount.
Calculating the actual MSME loan requirements in advance will be a wise move for the applicants.
You should have a clear plan for using the loan money.
Don’ts
Applicants should be aware of the fraudulent lenders available online. They charge an upfront fee for approving the MSME loan online. However, any reputed digital lending platform will never ask for an upfront fee, instead, it will charge a minimal percentage after loan disbursal.
Applying for MSME loan online from multiple lenders can harm an applicant’s credit score.
Applicants must ensure that all their pending debts are cleared or paid before applying for MSME loan.
Many small business enterprises face issues due to low access to funds that hampers the growth of their business. Indifi is a leading digital lending platform that offers MSME loan to the manufacturers sans any collateral and at the most affordable interest rates. They offers loan with flexible repayment schedules and without any hidden charges. All this makes the repayment process quite convenient for the applicants.
Guide to Use MSME Loan Calculator
Most online business calculates EMIs by using the standard formula. So, to use any standard online loan calculator, you will need to provide the following values: the principal amount, the interest rate, and the tenure.
Suppose you have borrowed Rs. 1 Lakh at an interest rate of 3% per annum, with a repayment time of three years. You can calculate the EMI amount you must pay each month using an online business loan calculator , You can also check the total amount you will be paying.
Also, the online loan calculators can show you the total amount you will be paying to the lender.
Benefits of Using MSME Loan EMI Calculator
Besides helping you estimate the monthly EMI amount, most online business loan calculators come with many other benefits.
Formula To Calculate MSME loan EMI In Seconds
There are several ways to calculate MSME loan EMIs. The most common formula used is:
E = P * r * (1+r) n / (1 + r) n-1Here, ‘E’ is the EMI amount you must pay every month, ‘P’ is the principal amount of the loan, ‘r’ is the interest rate, and ‘n’ is the repayment tenure.
- You do not need to calculate the EMI amount manually
- Visually Appealing
- Helpful for Financial Planning
One of the reasons why people use an online business loan emi calculator is that it helps them make tough financial decisions involving large sums of money.
These are just a few advantages of using an online business loan calculator to estimate the amount of money you will be paying every month as EMI for repaying your business loan.
There are many ways to calculate MSME loan EMIs. So, whenever you borrow money for funding your small business or start-up organization, do not forget to estimate the EMI you will be paying every month. It will help you make better financial decisions. You can do it easily using MSME loan calculator.
Frequently Asked Questions
- What is MSME loan?
- Who is Eligible For MSME Loan?
- What is the difference between SME and MSME Loan?
- Which documents are required to get an MSME loan?
- What is the process of msme loan apply online?
- What is the maximum term limit for MSME loan?
- What is the 25 lakh scheme in MSME?
- What is the processing fee for MSME loan?
- Who cannot apply for MSME?
MSME loans are unsecured loans offered by govt or various financial institutions to meet business-related expenditures on credit.
Eligibility includes minimum age of 22 years, business operational history of 1 year.
Both terms are the same. SME stands for small and medium enterprises. Whereas, MSME stands for micro, small and medium enterprises
Documents like Bank Statements for the last 6 months, PAN Card copy, Adhaar Card copy, Business Registration Certificate, GST Filing, Drug License, Trade License, TIN, and VAT Registration are required for this purpose.
fill out the application form online & then upload all your required documents like aadhar card, GST, and other docs, submit the details. You're are good to go.
The maximum term limit for the MSME loan is 36 months.
The ₹25 lakh scheme in MSME refers to a government initiative that provides financial support to small businesses for capital investment, working capital, or other business needs. It typically includes subsidized loans or credit under specific MSME support programs.
One time processing fee for a business loan is around 3% of the sanctioned loan amount.
Businesses exceeding MSME investment or turnover limits and non-business entities like NGOs cannot apply for MSME registration..