business loan for msme and sme

Get Hassle-Free MSME Loan @15%* p.a.

Loan up to 50 Lakh | Low Interest Rate | Quick Disbursal | Easy to Apply

Micro, Small, and Medium-scale Enterprises (MSMEs) form the crux of India’s socio-economic development, contributing heavily to the country’s GDP growth. However, these MSMEs often face a major challenge in figuring out how to get a Business Loan to conduct their day-to-day operations smoothly. Luckily, they can avail of MSME Loans in India, which are a form of unsecured Business Loan that is offered to such enterprises to fund business expansion or other expenses.

Poonawalla Fincorp provides collateral-free Business Loans for SMEs and MSMEs. Our SME/MSME loans come with lots of attractive features and benefits, such as a simple application process, flexible tenure, favourable interest rates, and quick loan processing.

Reasons to Apply for a Business Loan for MSME

SMEs and MSMEs need funding from time to time to continue running their business operations smoothly. They need sufficient funds to meet various requirements.

Here's why you should consider taking an MSME/SME Business Loan from Poonawalla Fincorp:

  • To meet planned and unplanned expenses

    To meet planned and unplanned expenses

  • To consolidate your debts

    To consolidate your debts

  • To procure inventory

    To procure inventory

  • KYC Documents

    Pay for emergencies

  • Financial Documents

    Invest in business marketing

  • KYC Documents

    Upgrade business infrastructure

  • KYC Documents

    Install new plants and machinery

  • KYC Documents

    Pay overhead costs

Types of Fees Applicable Charges
Rate of Interest 15% to 28% p.a.*
Processing Fees Up to 3% plus applicable taxes
Repayment Instrument Dishonour Charges ₹500 per bounce plus applicable taxes
Default Interest 2% per month
Loan Amount ₹1 Lakh to ₹50 Lakh
Lowest EMI per Month Starting from ₹2,783* per Lakh for 48 months
Loan Tenure 6 - 48 months
Prepayment/Foreclosure Charges 0%* if paid from own sources & 4% If paid from other sources
Stamp Duty At actuals (as per state)
Penal Interest 2% monthly on the defaulted EMI amount

Our MSME Loan eligibility criteria are designed to enable different small businesses to fulfil their specific financial needs. The requirements are listed below:

Age Requirement


24 to 65 years

Citizenship Status



Work Experience Required

Business Vintage*

At least two years

Monthly Salary Required

Annual turnover

More than ₹6 Lakh

*Business vintage determines how long your business has been operating and when it was registered. It is a significant eligibility determinant for procuring an unsecured Business Loan.

Note: The above-mentioned eligibility criteria are indicative. Additional information may be asked by the Poonawalla Fincorp team during loan processing as per policy.

You don’t have to worry about time-consuming paperwork and running into funding delays due to multiple documents. With Poonawalla Fincorp, you can access quick financing for your business with minimum documentation.

Below is the list of required documents for availing of our SME/MSME Business Loan:

  • Income Proof

    Proof of Address (PAN Card/Aadhaar Card/Voter ID/Driving Licence/Passport)

  • Address Proof

    Business Address Proof (Rent Agreement/Utility Bill)

  • Financial Documents

    Financial Documents (Bank statements/IT Returns)

Note: This list of documents is indicative. We may need some additional documents during loan processing.

The features and benefits of our Business Loan for MSME include:

Poonawalla Fincorp provides MSME Finance in India that comes with a host of industry-best features and benefits, such as:

  • high loan amounts of up to ₹50 Lakh

    Hassle-Free Loan Approval

  • Attractive and competitive interest rate

    Simple Eligibility Criteria

  • Simple and minimal documentation

    Up to ₹50 Lakh Loan Amount

  • Hassle-free, online application provision logo

    Flexible Repayment Tenure

  • Collateral free

    Minimum Documentation

  • Instant disbursal loan

    No Collateral Required

  • Sizable sanction up to ₹50 lakh logo

    Competitive Interest Rates

  • Foreclosure fees logo

    Convenience of Online MSME Loan Process

Hassle-free Loan Approval

With Poonawalla Fincorp, you can apply for an MSME Loan online and get quick approval. This is especially helpful when you're in urgent need of finances.

Minimum Documentation

To speed up the loan processing, we only require you to submit basic MSME Loan documents.

Simple SME Loan Eligibility Criteria

Accessing quick business finance is easy with our Business Loan for MSMs, thanks to simple eligibility criteria and only basic business Loan documents required to get started.

No Collateral Required

Our Business Loans for SMEs/MSMEs are unsecured loans, which means you can avail of this loan quickly, without pledging any business or personal assets.

High Loan Amount of Up to ₹50 Lakh

With our MSME Business Loan, you can access capital of up to ₹50 Lakh and fund any business-related expenses.

Competitive Interest Rates

Get competitive SME Loan interest rates on our MSME Business Loan, starting from 15% per annum.

Flexible Repayment Tenure

Our MSME Business Loan comes with a flexible repayment tenure of up to 48 months, allowing you to manage your loan repayments efficiently.

Convenience of Online MSME Loan Process

Apply for an online SME Loan in just a few simple steps. Get quick approval and have the funds credited to your bank account without any delays.

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Apply Online

Click on Apply Now and enter your contact details.

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Document Required Logo

Business Details

Enter your annual business turnover and other business details.

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The application will then proceed for verification and assessment

How to apply for an SME Loan?

You can conveniently apply for an online SME loan with Poonawalla Fincorp by following the simple steps mentioned below:

  • Step 1 – Visit our website, check your MSME/SME loan eligibility, and click on ‘Apply Now’.
  • Step 2 – Complete the loan application form.
  • Step 3 – Submit the required documents with the application.

Post successful verification, the approved loan amount will be disbursed to your bank account.

You can also call our toll-free number at 1800-266-3201 before you visit our branch to find out which documents are required.

Who is eligible to apply for an SME/MSME Loan?

Poonawalla Fincorp provides SME/MSME Loans with easy eligibility criteria and minimal documentation. All micro, small, and medium-sized enterprises with a business vintage of more than two years and an annual turnover of at least ₹6 Lakh can apply for our Business Loans for SMEs and MSMEs. For more details, please visit the Business Loan eligibility criteria section on our website.

What are the interest rates applicable for SME/MSME Loans?

While the interest rate for an SME/MSME loan varies across lenders, Poonawalla Fincorp provides Business Loans for SMEs and MSMEs at competitive interest rates, starting from 15% per annum.

What is the processing fee applicable for SME/MSME Loans?

We levy a nominal processing fee of up to 3% + taxes on the loan amount to counter the administrative charges and provide best-in-class services to our customers.

Do I need to provide any collateral for availing of an MSME Loan?

Not at all! Our SME/MSME Loans are collateral-free. It means that you are not required to pledge any security to avail funds for your business. Additionally, it helps us disburse your loan as quickly as possible.

How can I calculate the EMIs I need to pay for my MSME Loan?

You can use our online EMI calculator for SME/MSME Loans to determine the amount for your monthly loan repayment. All you need to do is enter your loan amount, interest rate, and tenure, and click on the ‘Check Repayment Schedule’ option.

*Terms & Conditions Apply

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