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✓Minimal Documentation ✓Flexible Repayment ✓Collateral Free Loan | Apply for Business Loan Now!

In recent years, the country’s booming economy has provided momentum to the rise of several SMEs (small and medium-sized enterprises) and MSMEs (Micro, Small, and Medium Enterprises). Moreover, it has become extremely easy to avail an MSME/SME loan to meet your business’s working capital requirements. An MSME/SME business loan can be used for several purposes, such as upgrading your company’s infrastructure, buying and repairing factory machinery, purchasing raw materials, etc. You can easily avail MSME/SME loans to set up or expand your business at Bajaj MARKETS.

Key Features of SME/MSME Business Loans

If you choose to apply for a business loan for your MSME/SME through Bajaj MARKETS, you get several benefits. Some of the key features and benefits of availing an MSME/SME loan here are:

  • Quick Online Processing: You can apply for an SME/MSME business loan online on our platform and get it approved in just 2 minutes. The online process not only saves time but also ensures that your request is processed instantly and the amount is disbursed into your bank account within 24 hours of approval.

  • Zero Collateral: Most financial institutions demand collateral against a business loan. However, MSME loans at Bajaj MARKETS are unsecured and do not require the applicant to pledge any collateral.

  • High Loan Limit: Depending on the planned expansion scale, the funds required for a particular business may vary. Therefore, the SME/MSME business loans offered at Bajaj MARKETS come with a high loan limit of ₹50 Lakhs.

  • Long Repayment Tenure: It is necessary to have a comfortable loan repayment tenure to make sure that you do not default on your EMIs. At Bajaj MARKETS, you can enjoy a flexible repayment tenure of 12-60 months on your MSME/SME business loan.

How to Apply for MSME Loan Scheme

The registration process for MSME can be carried out online as well as offline. Just follow the below-mentioned steps in order to register your firm under the MSME loan scheme:

  • Step 1: Log in to udyogaadhaar.gov.in for MSME Registration.

  • Step 2: Fill in the details in the registration form available on the website.

  • Step 3: Provide details such as your Aadhaar number, industry type, address, bank account details, etc.

  • Step 4: You are also required to provide self-attested certificates along with the application form.

  • Step 5: Once the details are filled in and uploaded, you will receive a registration number for the same.

MSME/SME Loan Fees and Interest Rates

At Bajaj MARKETS, you can get MSME/SME Loan at an affordable MSME loan interest rate, starting from 12%. In addition, nominal charges are levied as processing fees or penalties if the applicant decides to prepay or foreclose the loan.

Interest Rate

12% onwards*

Processing Fee

About 2%-3% of the loan amount*

Loan tenure

12-60 Months

Pre-closure Charges

Nil

Loan Amount

Upto ₹50 Lakhs*

* T&C Apply

MSME/SME Loan Interest Rates by Top Banks/NBFCs

You may refer to the following table to get an idea of the interest rates levied by our various lending partners on business loans for MSMEs/SMEs.

Lender

Interest Rate

Bajaj Finance

17% p.a. onwards

KreditBee

15% p.a. onwards

FlexiLoans

12% p.a. onwards

Lendingkart

15% p.a. onwards

NeoGrowth

18% p.a. onwards

Eligibility Criteria for MSME/SME Loans

While different lenders have different eligibility criteria, you must fulfil the following general criteria in order to be eligible for an MSME/SME business loan from any bank/NBFC:

  • You must be between 21 and 55 years of age.

  • The business must have been successfully running at least for the last 3 years.

  • The business must have filed IT returns for at least the last one year.

  • You must have a minimum credit score of 750.

  • You must not have any past record of loan default in your name or in the name of your business.

  • Eligible entities that can apply for a business loan under the MSME loan scheme are partnership firms, proprietorships, limited companies, Hindu Undivided Families, women entrepreneurs, self-employed professionals, private limited companies, limited liability partnerships, and co-operative societies.

Documents Required for MSME/SME Loans

You must submit the following documents to the lender when applying for an MSME/SME loan for your business:

  • Identity Proof: Aadhaar card, passport, voter ID, etc.

  • Address Proof: Electricity bill, telephone bill, passport, Aadhaar card, driving licence, etc.

  • Business Proof: Certificate of business existence, Income Tax filings for the previous financial year, profit and loss statements for the past 3 years, etc.

  • 2 passport-size photographs

Dos and Don'ts Before Applying for MSME/SME Loan

Dos

Don’ts

Most lenders rely on the borrower’s credit rating for loan approvals. Make sure to check your CIBIL score before applying for an MSME or SME loan.

Do not apply with multiple lenders, as it will bring down your CIBIL score considerably. The lender might see this as financial desperation on your part, which might lower your chances of loan approval in addition to your CIBIL score.

Ensure all the required documentation is in place before starting the loan application process.

Avoid delaying your loan repayments for existing debts even if you take the MSME loan for new business debt consolidation. This will affect your credit score negatively.

Make sure the MSME loan requirements are assessed before applying for the loan. Try not to overestimate or underestimate your MSME loan requirements as you will waste your time and money in both cases.

Be aware of fraudulent lenders that may charge you huge fees for MSME loan approval. A genuine lender will never ask you for an upfront fee and will typically charge you a percentage on the disbursed loan amount.

Smart Ways of Using MSME/SME Loan

MSME/SME loans are offered to startup owners, small business owners, and women entrepreneurs on a short-term basis. The duration of MSM/SME loans is not the same everywhere and differs from one lender to another. Lack of timely finance is one of the biggest setbacks for the growth of MSMEs in India. With MSME/SME loans, it is easy to avail instant financing for the business. This provides entrepreneurs the financial support to carry out numerous business operations with ease. Here are five smart ways to utilise the funds of an MSME/SME business loan:

  • Inventory Management: Inventory management is a critical part of a small business as its profits depend on the sale volumes. The MSME/SME loan funds can help secure your inventory supply chain, manage seasonal dips, or purchase new product samples for business sales.

  • Purchasing Plants & Machinery: MSME/SME loans can fund the purchase of new equipment required for the business. Since investment in plants and machinery requires heavy funding, applying for an MSME/SME loan can aid such expenses without straining the company’s capital fund.

  • Working Capital Management: If a company can not finance its day-to-day expenses, the production of wares and services will eventually suffer. A business owner can apply for MSME/SME loans and use the funds to ensure the company runs smoothly while repaying short-term debt and expenses that might arise soon.

  • Consolidate Your Business Debt: MSME/SME loans allow you to consolidate smaller debts and turn them into a single EMI. This helps reduce the strain caused by the monthly budget and helps align the debt repayment and the invoicing schedule.

  • Invest in Marketing: With an effective marketing strategy, a business can reinforce the trust and loyalty of its existing customers and acquire new customers in existing or new markets. However, marketing is a costly affair and requires investments in marketing campaigns. An MSM/SME loan can help finance these campaigns for your business.

 

MSME Loan News Update

Assam emerging as MSME investment hub: study

A study showed that Assam is fast surfacing as a hub for investment in the micro, small, and medium enterprises (MSME) sector in the North East region of India. However, it is also suggested that this sector needs a boost in terms of financing and technological inputs to grow and multiply even further.

The study, published by the Export Promotion Council (EPC) of the MSME Ministry and BillMart Fintech, states that a large chunk of investment from the private sector is being directed to the sectors of food processing, organic, horticulture, petroleum, and MSME units. Additionally, the report also states that these sectors contribute significantly to the generation of jobs and boost sustainable livelihood and growth.

Among the MSMEs located in the North East, a dearth of access to financing and credit was found to be a major issue, with Assam housing 61.48% of the total MSMEs in the region (67,000 industries – 88% micro-units and 11.5% small and medium enterprises).

The study goes on to state that in 2018-19 alone, the state of Assam received investments to the tune of Rs. 1,162,202.6 million for new projects, of which Rs. 1,153,351.6 million was spent on projects that were completed. In the year 2020-21, the state received Rs. 6,902.3 million for investment purposes, of which projects worth Rs. 33,986.6 million were completed.

The government of Assam has also formulated a plan to link these MSMEs to financiers – those who will provide affordable credit, as well as a range of services pertaining to marketability and financial accountability.

- May 23, 2022

MSME loan relief till month-end

The Emergency Line of Credit Scheme (ECLGS)worth ₹3 crores is unlikely to be extended beyond October 2020, by the government to the MSME sector. The scope for the ECLGS scheme was broadened by the government on August 1st. The government chose to double up on the upper ceiling of the loans outstanding while also adding loans specifically for chartered accountants, lawyers, and doctors to the scheme. Reportedly, the amount that has been sanctioned off so far is just about 65% of the target amount, yet the scheme is not likely to continue providing support to micro, medium, and small enterprises, if there are no takers.- 

Govt striving to provide funding to MSMEs

Since the lockdown began in March, the government of Uttar Pradesh alone has put in ₹26,000 crores into the MSME sector in the form of working capital loans. Augmenting MSME exports within the next three years so that they reach the target of ₹3 lakh crores is the government’s current focus. In the last two fiscal years, exports from MSMEs from the state hit ₹1.14 lakh crores and ₹1.20 lakh crores respectively. As the impetus for MSME exports, the government of UP is hammering out a fresh policy with respect to export promotion. The state is also aiming to conduct a study on leading industrialized states so they can cut the state’s production cost per unit towards MSMEs.

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FAQs on MSME Loan

✔️What is the new definition of an MSME?

As per the new definitions, any firm with an investment of less than ₹1 Crore and turnover of less than ₹5 Crores will fall under the micro category, while businesses with less than ₹10 Crore investment and turnover of less than ₹50 Crores will be considered under the small category. Enterprises with an investment of less than ₹20 Crores and turnover of less than ₹100 Crores will fall under the medium category.

✔️What is the Atma Nirbhar Bharat Abhiyan scheme?

The Atma Nirbhar Bharat Abhiyan package of ₹20 lakh crore was introduced to revive the Indian economy by providing funds to help farmers, migrant workers, etc. and revive the industrial sector. The campaign also aims to address issues faced by businesses and MSMEs and the steps announced will boost liquidity, empower entrepreneurs, and strengthen their competitive spirit.

✔️What are the proposals aimed at offering relief to MSMEs?

The government of India has proposed to offer collateral-free loans as a relief for MSMEs which will be fully guaranteed by the Centre. A principal repayment moratorium for 12 months along with the interest rate capping will be applicable with a no guarantee fee.

✔️Who can avail MSME loans?

Self-employed professionals and self-employed non-professionals like proprietors, retailers, traders, and others can avail the SME/MSME loans at Bajaj MARKETS.

✔️How to apply for MSME loans during the pandemic?

The process to apply for an MSME loan is quite simple and easy:

  • Fill in the online application form for MSME loan.

  • Submit all the required documents to complete the process.

  • Once approved, the loan amount will get disbursed to your bank account usually within 24 hours.

✔️Is it necessary to get a company registered as an MSME?

It is not necessary, but it is always advisable to get your company registered as an MSME (if it satisfies the requisite criteria) for it will help your business scale up and save you from inconveniences like taxes, permissions, employee-related issues, and other legal issues.

✔️How to apply for the booster scheme for MSME?

  1. You can easily apply for the booster scheme for MSMEs on the Udyog Aadhaar website. Just fill in the application form and provide the requisite details like Aadhaar number, industry type, address, bank account details, etc. You will be given a registration number once your application is successfully submitted.