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 quite easy to obtain an MSME/SME loan to meet your business’s working capital requirements.
You can use an MSME/SME business loan for several purposes. Bajaj Markets offers loans that can support:
Upgrading your company’s infrastructure
Buying and repairing factory machinery
Purchasing raw materials
Setting up or expanding your business
Read on to learn about SME/MSME business loans, their features, the application process, interest rates and more.
The registration process to get MSME or SME finance can be carried out online with ease. Just follow the below-mentioned steps to register your firm for the MSME loan scheme:
Entrepreneurs who are not registered as MSME or with EM-I
Entrepreneurs who have the Udyog Aadhaar Memorandum (UAM) or are registered as EM-II
On Bajaj Markets, you can get MSME/SME Loan at an affordable MSME loan interest rate, starting at 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 |
12-72 Months |
Pre-closure Charges |
Nil |
Loan Amount |
Upto ₹50 Lakhs* |
Disclaimer: Aforementioned loan specifics can vary at the lender’s discretion.
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.
Our Partners |
Interest Rate Range |
Max Loan Amount/ Tenure |
Avail Loan |
20% onwards |
36 months |
||
28% onwards |
36 months |
||
12% onwards |
36 months |
||
18% onwards |
60 months |
||
20% onwards |
48 months |
||
16% onwards |
36 months |
||
15% onwards |
9 months |
||
15% onwards |
36 months |
||
1.25% p.m. onwards |
72 months |
Disclaimer: Aforementioned loan specifics can vary at the lender’s discretion.
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, PAN card, etc.
Address Proof: Electricity bill, telephone bill, passport, Aadhaar card, driving license, etc.
Business Proof: Certificate of business, ITR filings for the previous financial year, profit and loss statements for the past 3 years, etc.
2 passport-size photographs
Check out some do’s and don’ts you must consider while applying for an MSME/SME loan.
Dos |
Don’ts |
Most lenders rely on the borrower’s credit rating for loan approvals. Check your CIBIL score before applying for an MSME or SME loan. |
Do not apply with multiple lenders, as it reduces your CIBIL score considerably. The lender might see this as high financial reliance, 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 of the disbursed loan amount. |
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. 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 ₹50 Crores and turnover of less than ₹250 Crores will fall under the medium category.
The Atma Nirbhar Bharat Abhiyan package of ₹20 Lakh Crores 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.
The government of India has proposed to offer collateral-free loans as a relief for MSMEs which the Centre will fully guarantee. A principal repayment moratorium for 12 months, along with the interest rate capping, will be applicable with a no-guarantee fee.
You can avail of an MSME loan through Bajaj Markets if you are a self-employed professional or non-professional, including a trader, retailer or proprietor.
The process of applying for an MSME loan is quite simple and easy. You can apply online by visiting the official Bajaj Markets website. Login or register using your mobile number and OTP, fill out the application form and submit all the required documents to complete the process.
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.
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.