Business Loan Scheme for MSME & SME in India up to ₹ 50 Lakh
Micro, Small, and Medium-scale Enterprises (MSMEs) form the crux of the socio-economic development of India. As per the MSME Ministry’s data, there are approximately 6.3 crore MSMEs in India, contributing heavily to the country’s GDP growth. However, these MSMEs often face one challenge and that is how to get a Business Loan and finances to conduct their day-to-day operations.
MSME loans in India are a form of Business Loan that is given to micro, small, and medium-sized businesses to begin a firm, expand it, or cover other business expenses. MSME loans in India are unsecured, and how to get MSME loan details is usually a simple process. To MSME loan apply online or offline and to qualify for this form of loan, you must meet specified eligibility requirements.
To help the small and medium-sized businesses in India, Poonawalla Fincorp provides collateral-free Business Loans for SMEs and MSMEs. Our SME/MSME loans come with a host of attractive features and benefits such as flexible tenure, competitive interest rates, and quick approval. How to apply for MSME loan online or offline is the question that must be popping in your mind now to know the answer read further.
Various Reasons to Take Business Loan for MSME
SME Business Loan needs funding from time to time to keep running their business operations smoothly. They require timely finances to meet various financial requirements, such as procuring inventory, paying wages to staff, closing the supply-chain gaps, and maintaining a healthy cash flow.
- Here's why you should consider taking an MSME/SME Business Loan from us:
- Meet various planned and unplanned expenses
- Consolidate your debts
- Procure inventory
- Pay for emergencies
- Invest in business marketing
- Upgrade business infrastructure
- Install new plants and machinery
- Pay overhead costs
Features and Benefits of MSME Loan
Poonawalla Fincorp provides MSME Finance in India with simple eligibility criteria and minimum documentation. Our prime objective is to ensure that the lack of MSME finance never stops a business from expanding to greater heights.
- Below are some striking features and benefits of our Business Loan from MSME:
- Hassle-free loan approval - Obtaining starting cash, capital to sustain an existing business, or funds for expansion might be one of the most difficult tasks you will face as a business owner. MSME loan details are simple to obtain, and you can apply for MSME loan onlinefor a quick approval.The quantity of documentation required is small, and the loan is disbursed swiftly. When you're in desperate need of cash, this can help.
- Minimum documentation - To minimize delays altogether and speed up loan processing, we only require you to submit basic Business Loan documents. This feature complements you to apply for MSME loan online at the Poonawalla Fincorp website and offers you a swift and simple solution.
- Simple SME loan eligibility criteria - Accessing quick business finance is easy with the Poonawalla Fincorp Business Loan. Business owners need only meet the easy criteria and submit basic Business Loan documents to get started.
- No collateral required - Our Business Loans are SME unsecured loans, which means they may be obtained quickly and with minimal risk. You can simply obtain financing without pledging any business or personal assets. You don't have to liquidate your assets to acquire company finance in a crisis or when you're short on cash.
- High loan amount of up to ₹50 lakh - SME Business loan expenditures and working capital require sufficient finance. With our MSME Business Loan, you can access capital 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. Among the many Business Loan from SME features, this provision of attractive SME Loan interest rate makes our offering a cost-effective solution that you can rely on to maximize revenue.
- Flexible repayment tenure - MSME Business Loan scheme is typically employed 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 capital digitally and from the convenience of your home or office. Apply for online SMEloan in just 5 simple steps, get instant approval, and have the funds credited to your account without any delays.
- Interest Rates are Lower - Every penny you save is a penny you earn. No one wants to spend a fortune on outrageous interest payments. MSME loans have low interest rates, making them a popular financial 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 at any level of development.
- Other advantages of a Business Loan for MSME in India are:
- The majority of Business Loan for MSME in India do not require collateral.
- Online SME loan approval and disbursement of the loan money is quick.
- A contract with a length of time ranging from 12 to 60 months.
- Interest rates have been reduced.
- Nominal Documents required for an MSME Business Loan scheme application
- Manage your loan easily from the net banking website of your financial provider
- Pre-approved offers
Eligibility Criteria of Online MSME Loan
Qualifying for new Business Loans with Poonawalla Fincorp is simple and effortless. Our loan requirements are designed to save time and position you for success at every turn. To ensure you don’t run into any problems or have issues during loan processing. We aim to empower SMEs and MSMEs so that they can expand their businesses without facing any financial crunch. Hence, we offer Business Loans from MSME with simple eligibility requirements.
- Below are our eligibility criteria for SME/MSME loans:
- Age- between 22 & 65 years at maturity
- Nationality- Indian only
- Business Vintage- Business vintage describes how long your business has been operating and when it was registered. It is a significant eligibility determinant for many business financing products offered by formal lenders, including Unsecured Business Loans. Have a business vintage of at least two years.
- Annual turnover- More than ₹ 9 lakh
Required Documents for SME/ MSME Loan
We only require applicants to submit basicdocuments. As such, you don’t have to worry about time-consuming paperworkor running into funding delays because of it. With Poonawalla Fincorp, you can get access to quick financing for your business with minimum documentation.
- Below is the list of required documents for our SME/MSME Business Loan scheme:
- 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)
But remember, this list of documents is indicative. We may need some additional documents during loan processing.
How to apply 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 – Upload or submit the required documents
- Step 5 – Get the loan amount in your bank account post verification
Alternatively, you can go to your local bank and ask for an application form. You can call on our Business Loan number forehand to find out what documentation is required.
This is how conveniently you canpracticeMSME loan apply online or offline without going through the cumbersome procedure. For any query, you can easily get in touch with us by dialing our Business Loan number available on our website.
Other MSME Loan Schemes:
There are a variety of government-sponsored MSME loan schemes 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 Programme (PMEGP)
MSME loans have particular eligibility requirements, and business owners must meet all of them to receive the benefits. Poonawalla Fincorp provides up to ₹ 50 lakh in MSME loans to help businesses fulfil their immediate financial needs. To make loan processing easier, it has minimum eligibility and documentation requirements. MSME or SME loan interest rate is low and can be repaid over a long period. Businesses can part-prepay or foreclose the loan account before the term ends with Poonawalla Fincorp for a minimal fee.
Frequently Asked Questions on SME/MSME Loan
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 ₹ 9 lakh can apply for our business loans for SME and MSME.
What are the interest rates applicable for SME/MSME loans?
The interest rate for an SME/MSME loan varies across the lenders. Poonawalla Fincorp provides business loans for SMEs and MSMEs at competitive interest rates starting from only 15% per annum.
What is the processing fee applicable for SME/MSME loans?
We levy a nominal processing fee of 2% 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 of finances for your business. Additionally, it helps us in disbursing your loan as quickly as possible since it compresses the verification process.
How can I calculate the EMIs I need to pay for my MSME loan?
You can use our online SME/MSME loan EMI calculator to know the EMIs you need to pay for your loan repayment in advance. All you need to do is enter your loan amount, interest rate, tenure, and click on “Check Repayment Schedule”.