business loan for msme and sme

MSME Loan/SME Loan

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

Micro, Small, and Medium-scale Enterprises (MSMEs) form the crux of India’s socio-economic development. As per the latest data from the MSME Ministry, there are approximately 6.3 Crore MSMEs in India, contributing heavily to the country’s GDP growth. However, these MSMEs often face a major challenge to figure out on how to get a Business Loan to conduct their day-to-day operations smoothly.

MSME loans in India are a form of Business Loan that is given to Micro, Small, and Medium-sized businesses to help them expand their firm or cover other business expenses. MSME Loans in India are unsecured and availing a MSME loan is usually a simple process. To qualify and apply for an MSME Loan online or offline, you must meet certain specified eligibility requirements.

To help small and medium-sized businesses in India, Poonawalla Fincorp provides Business Loans for SMEs and MSMEs with no collaterals. Our SME/MSME loans come with a lot of attractive features and benefits, such as flexible tenure, low interest rates, quick approval and disbursal.

Reasons to Apply for Business Loan for MSME

SMEs and MSMEs need funding from time to time to continue running their business operations smoothly. They require funds to meet various requirements, such as procuring inventory, paying wages to staff, closing the supply-chain gaps, and maintaining a healthy cash flow etc.

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

  • To meet various planned and unplanned expenses
  • To consolidate your debts
  • In order to procure inventory
  • Pay for emergencies
  • Invest in business marketing
  • Upgrade business infrastructure
  • Install new plants and machinery
  • Pay overhead costs

Now, you must be wondering how to apply for an MSME loan online or offline. Read on to find out all the answers.

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Types of fee Applicable Charges
Rate of interest 15% to 28% p.a.*
Processing fees Up to 3% plus applicable taxes
Bounce charges ₹1,000 per bounce plus applicable taxes
Late Payment Charges 3% per month
Loan Amount ₹1 Lakh to ₹50 Lakhs
Lowest EMI per month Starting from ₹3,467* per Lakh for 36 months
Loan Tenure 6 - 36 months
Prepayment/Foreclosure Charges Zero*
Stamp Duty At actuals (as per state)
Penal Interest 3% monthly on the defaulted EMI amount

Qualifying for a new Business Loan with Poonawalla Fincorp is simple. Our loan requirements are designed to save time for borrower when applying for loan. To ensure you have a smooth experience during loan processing, we offer Business Loans for MSMEs with simple eligibility requirements.

Age Requirement

Age

24 to 65 years

Citizenship Status

Nationality

Indian

Work Experience Required

Business Vintage

At least two years

Monthly Salary Required

Annual turnover

More than ₹6 Lakh

Below are our eligibility criteria for SME/MSME Loans:

  • Age: 24 to 65 years
  • Nationality: Indian
  • Business Vintage*: At least two years
  • 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 unsecure Business Loan.

Please note that the above-mentioned eligibility criteria are indicative in nature and more information can be asked by Poonawalla Fincorp team during loan processing as per policy.

We only require applicants to submit basic documents. You don’t have to worry about time-consuming paperwork and running into funding delays because of it. With Poonawalla Fincorp, you can access quick financing for your business with minimum documentation.

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

  • KYC Documents

    Company PAN Card or Director/Proprietor PAN Card

  • Income Proof

    Proof of Address (Aadhar Card/Voter ID Card/Passport)

  • Address Proof

    Business Address Proof (Rent Agreement/Utility Bill)

  • Financial Documents

    Financial documents (Bank statements/IT Returns)

  • Company PAN Card or Director/Proprietor PAN Card
  • Proof of Address (Aadhar Card/Voter ID Card/Passport)
  • Business Address Proof (Rent Agreement/Utility Bill)
  • Financial documents (Bank statements/IT Returns)

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

Poonawalla Fincorp provides MSME Finance in India with simple eligibility criteria and minimum documentation process. Our prime objective is to ensure that lack of funds never becomes a reason to stop a business from accomplishing greater heights.

  • high loan amounts of up to ₹50 Lakh

    Hassle-free loan approval

  • Collateral free

    Minimum documentation

  • Attractive and competitive interest rate

    Simple SME loan eligibility criteria

  • Instant disbursal loan

    No collateral required

  • Simple and minimal documentation

    High loan amount of up to ₹50 lakh

  • Sizable sanction up to ₹50 lakh logo

    Competitive interest rates

  • Hassle-free, online application provision logo

    Flexible repayment tenure option

  • Foreclosure fees logo

    Convenience of online MSME loan process

  • No hidden charges logo

    Low Interest Rates

Below are some striking features and benefits of our Business Loan for MSME:

  • Hassle-free loan approval - Obtaining capital, funds to sustain an existing business, or finances for expansion might be one of the most difficult tasks you will face as a business owner. However, 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. You can simply apply for an MSME loan online through the Poonawalla Fincorp website and get a swift and simple solution.
  • Simple SME loan eligibility criteria - Accessing quick business finance is easy with the Poonawalla Fincorp Business Loan for MSMEs. Small business owners only have to fulfill the simple eligibility criteria and submit basic Business Loan documents to get started.
  • No collateral required - Our Business Loans for SMEs / MSMEs are unsecured loans, which means loan can be obtained very quickly and with minimal risk, without pledging any business or personal assets. You won’t even have to liquidate your assets to acquire funds for the company during a crisis, – simply apply online and get quick loan approval at low interest rates.
  • High loan amount of up to ₹50 lakh - SME expenditures and working capital require sufficient finance. With our MSME Business Loan, you can access capital of up to ₹50 Lakh and fund any business-related expense without compromise.
  • Competitive interest rates - When you opt for the Poonawalla Fincorp Business Loan, you enjoy a competitive SME Loan interest rate. You need not worry about high EMIs eating into your finances.
  • Flexible repayment tenure option - The MSME Business Loan is typically availed by firms for short-term needs. It is adaptable because no long-term commitment is required. Having a short-term commitment allows you to efficiently manage cash flow and allocate available resources.
  • Convenience of online MSME loan process - Get access to the required funds digitally and from the convenience of your home or office. Apply for an online SME Loan in just few simple steps, get instant approval, and have the funds credited to your account without any delays.
  • Low Interest Rates - Every penny you save is a penny you earn. No one wants to spend a fortune on outrageous interest payments, which is why our MSME Loans have low-interest rates, making them a popular financial assistance product.

MSME loans have several advantages for firms, including no collateral, quick processing, and simple approval. This is tailored to the specific requirements of enterprises.

Other advantages of availing a Business Loan for MSME in India are as follows:

  • Most of the Business Loans for MSMEs in India do not require any collateral.
  • Quick approval and disbursement of online SME Loans.
  • A flexible loan tenure ranging from 6 to 36 months.
  • Low interest rates.
  • Minimal documents are required.
  • Loan management is now easy, thanks to digital servicing channels.
  • Pre-approved offers for added advantage.

There’s a variety of government sponsored MSME loan schemes available in addition to those offered by banks and NBFCs.

The following are some of these schemes:

  • MUDRA Loan
  • Credit Guarantee Funds Trust for Micro and Small Enterprises (CGTMSE)
  • Prime Minister’s Employment Generation Program (PMEGP)

MSME Loans have specific eligibility requirements, and business owners must meet all of them to get loan approval. Poonawalla Fincorp provides up to ₹50 Lakh in MSME loans to help businesses fulfil their immediate financial needs. With easy eligibility, minimal documentation requirements and low-interest rates, the MSME Loan can be repaid over a flexible time period. Businesses can also prepay a part or foreclose the loan account before the term ends with Poonawalla Fincorp for a minimal fee.

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Click on Apply Now and enter your contact details.

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Business
Details

Business Details

Enter your annual business turnover and other business details.

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Verification

Verification

The application will then proceed for verification and assessment

How to apply for SME Loan?

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

  • Step 1 – Visit our website or your nearest branch
  • Step 2 – Check your MSME/ SME loan eligibility
  • Step 3 – Fill up the loan application form
  • Step 4 – Submit the required documents
  • Step 5 – Get the loan amount in your bank account post verification

You can also call on our Toll-free number before your visit our branch to find out what all documents are required.

For any query, you can easily contact us at 1800-266-3201.

Who are eligible to apply for SME/MSME Loan?

Poonawalla Fincorp provides SME/MSME Loans with easy eligibility criteria and minimal documentation. All 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 Business Loan eligibility criteria section in 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 very low and competitive interest rates.

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?

No. 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 SME/MSME Loan to figure out the EMIs you need to pay for your loan repayment in advance. 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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