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Micro, Small and Medium scale enterprises (MSMEs) contribute significantly to the growth of the Indian economy. Expanding your business requires a substantial amount of capital. This is where a business loan can prove to be extremely handy. In order to run their business efficiently and maintain steady cash flow, a large number of small business owners resort to availing a business loan. This has increased the popularity of MSME loans significantly over the years. Therefore, if you are an entrepreneur looking forward to availing funds for your business, you may consider availing an MSME loan.

Benefits of getting an MSME loan

  • Quick Loan Processing

When running a business, time is of the essence. Even small delays can result in missing out on a lucrative market opportunity. MSME loans don’t require any collateral, and hence, time is saved on the appraisal of assets. These loans require short processing times and quick disbursal of funds, some as early as in 48 hours. 

Quick processing of loans is one of the main reasons for the popularity of these loans, as it saves a lot of time in the process of getting the required funds for the business.

  • Full Control Over Business

A small business owner may not look forward to relinquishing control of the business. MSME loans are specifically designed to meet all the financial requirements of small businesses. This loan is an excellent source of finance for business owners who want to avoid liquidation of control. Loan funds acquired from venture capitalists and angel investors come at the cost of reduced ownership in the business. Non-Banking Financial Companies (NBFCs) do not involve liquidation of control. The aspect of ‘control’ is important for an MSME owner, with limited assets at their disposal. With an MSME loan, you can gain full control over your business.

  • Low-Interest Rate

A low rate of interest is an important factor that is considered during the selection of a loan. Lower interest on loans means that the business owner is not required to pay a significant amount every month towards repayment of the loan. The money saved from the low-interest rate on loans can be put to better use for boosting the business further. MSME loans, with their competitive interest rates, ensure that only the minimum amount is spent in repayment of the loan, and the rest of the funds can be utilized for other business requirements.

  • No Predetermined Purpose

Small businesses often require financing for various purposes. Hence these loans do not have a predetermined usage objective. The business owner is free to utilize the MSME loan amount to fulfil all kinds of financial requirements of the business.

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Types of Company Eligible for MSME Loan Scheme

  • Partnership Firm

  • Proprietorships

  • Limited Company

  • Hindu Undivided Family

  • Producer Company

  • One Person Company

  • Private Limited Company

  • Limited Liability Partnership

  • Any association of persons

  • Co-operative societies

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Eligibility Criteria for MSME Loan

To get access to the MSME loan you need to fulfil the basic loan eligibility criteria. The eligibility criteria for getting an MSME loan are as follows:

  • Applicant must be within the age-group of 25-55 years

  • The applicant’s business vintage must be more than 3 years

  • The applicant’s business should have filed for Income Tax Returns for at least the past 1 year

  • The applicant must have a minimum credit score of 750

  • The applicant must not have any past record of loan default in his/her name or in the name of the business.

Steps to Apply for an MSME Loan

  • Step 1: Log in to udyogaadhaar.gov.in for MSME Registration
  • Step 2: Fill in the details in the registration form available at the website
  • Step 3: Provide documents like your Aadhaar number, Industry name, Address, bank account details, etc.
  • Step 4: You can also provide self-certified certificates along with the application form.
  • Step 5: Once the details are filled and uploaded, you will receive the registration number for the same.

As a business flourishes, mergers and acquisitions are bound to happen for many firms. This would require a substantial amount of investment and funding. MSME finance can also be helpful in such cases. In addition to that, relocating a business to a newer or bigger location or investing in a new product line would require a large amount. Business owners can also use the loan amount to expand the online sales campaign, or for marketing and advertising budgets. Lastly, make sure that you read all the terms and conditions of your loan agreement carefully before signing it. This will help you avoid any inconvenience in the later stage.


Also read different GST components only at Bajaj Markets


There are many government loan schemes, that are specifically designed to assist MSME projects, which are low on interest and totally free of collateral security stipulations. At Bajaj Markets, you can easily avail MSME finance and SME business loans to set-up or expand your business. Offering low-interest rates with a host of other benefits of MSME loan like a line of credit facility. You can get an MSME loan up to INR 50 Lakhs without any collateral required. If you are an existing customer at Bajaj Markets, you can also avail of exclusive pre-approved Business Loans through Bajaj Markets app. With an MSME loan, you get access to a unique Flexi loan facility and loan approval in just 24 hours.


Read more on MSME Databank


Bajaj Markets, a subsidiary of Bajaj Finserv, is a one-stop digital marketplace that has been created for consumers on the go. It offers 500+ financial and lifestyle products, all at one place. At Bajaj Markets, we understand that every individual is different. And that’s why we have invested in creating a proposition – Offers You Value. A value proposition that ensures you get offers which are tailor made for you. We also offer an amazing product range and unique set of online offers across Loans, Insurance, Investment, Payments and an exclusive EMI store. Be it in helping you achieve your financial life goals or offering you the latest gadgets, we strive to offer what you are looking for. From simple and fast loan application processes to seamless and hassle-free claim-settlements, from no cost EMIs to 4 hours product delivery, we work towards fulfilling all your personal and financial needs. What’s more! Now enjoy the same benefits in just one click with our Bajaj Markets App.

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