Micro, Small, and Medium Enterprises (MSME), also referred to as small and medium enterprises (SME), are businesses considered to be the backbone of our economy. They not only provide employment to millions of people around the country but also generate revenue for the governments by paying their taxes. Banks and Non-banking financial companies (NBFCs) in India offer a variety of financial products such as MSME / SME Loans to meet the needs of these businesses.
With competitive rates, a simple loan application process, and quick disbursal of the loan amount, MSME / SME Loans are one of the best choices available for entrepreneurs to meet the financial needs of their business.
Currently, Money View does not provide MSME / SME loans. We only provide personal loans up to Rs 5 lakhs to salaried and self-employed applicants. You can also take a personal loan to meet the financial needs of your business.
The loan amount borrowed under this scheme can be used by small and medium enterprises for the following purposes:
Easy Application Process
Most lenders offer a simple loan application process and the loan requests are processed and approved without any hassles.
Quick Loan Disbursal
Lenders understand the importance of acquiring funds for the functioning of a business and hence offer fast disbursal of the loan amount.
Competitive Rates –
Due to the presence of many lenders offering SME loans in the country, the interest rates offered by them are quite competitive.
Flexible loan tenures
This loan offers customers the flexibility to select a repayment plan that not only suits their requirements and circumstances, but also their repayment capacity.
No Collateral and Third-Party Guarantee Requirement
There is no collateral or guarantee requirement for unsecured business loans for small and business enterprises.
The eligibility criteria followed by most lenders for SME loans are as follows:
The rate of interest offered with MSME / SME loans is usually based on several factors such as credit history, loan amount, repayment tenure, etc.
Given below is a list of some of the top MSME / SME loans providers in India and the interest rates offered by them.
|Bank||Minimum Interest Rate Per Annum|
|SBI (Mudra Loan)||9.75%|
|Bank of India||10.20%|
|Punjab National Bank (Mudra Loan)||10.30%|
|IDFC First Bank||18%|
|Kotak Mahindra Bank||16%|
|Processing Fee||Starting from zero to 4 percent of the approved loan amount|
|Part or pre-payment Charges||Starting of zero to 4 percent of the pending loan amount|
|Loan Cancellation Charges||Differs from one lender to another|
|Foreclosure Charges||Starting of zero to 5 percent of the pending loan amount|
**Please note that the interest rates, fees, and other charges mentioned above may not be up to date and will differ from one lender to the other. Please contact the lender directly to know about the applicable interest rates, eligibility criteria, and fees & charges.
The documents required to avail MSME / SME loans may differ from one lender to the other.
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