In recent years, the country’s booming economy has given an impetus to the rise of several SMEs (Small and Medium-sized Enterprises) and MSMEs (Ministry of Micro, Small and Medium Enterprises). Moreover, it has now become extremely easy to avail an MSME business loan to meet your business’ working capital requirements. An MSME loan can be used for several purposes such as upgrading your Company’s infrastructure, buying and repairing factory machinery, purchasing raw materials, etc. With us, at Finserv MARKETS, you can easily avail MSME and SME business loans to set-up or expand your business.
The estimated 6.3 crore MSME units are considered as the backbone of the Indian economy. With the ongoing lockdown, the government introduced relief packages to support stressed MSMEs. The aim of providing these relief packages is to help meet the temporary liquidity mismatch due to the Pandemic crisis. This includes payment of statutory dues, salary/wages/electricity bills/rent etc.
Finance Minister of India, Nirmala Sitharaman announced the economic package to help the stressed MSMEs, sustain the disruptions caused by the Pandemic lockdown. The scheme offers:
The goal behind this economic package is to build a self-reliant India. The focus of “Atma Nirbhar Bharat Abhiyan” would be on land, labour, liquidity and law.
Finserv MARKETS offers online processing for all types of loans for small business. You can apply for a SME business loan online with us and get it approved under just 3 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.
Most financial institutions demand a collateral against the loaned amount for a business loan. However, MSME loans at Finserv MARKETS are unsecured in nature and do not require the applicant to provide any form of collateral.
Depending on the planned expansion scale, the range of the funds required for a particular business may vary. Therefore, the SME business loans offered at Finserv MARKETS come with a high loan limit of INR 30 lakhs.
It is necessary to have a comfortable loan repayment tenure so that the borrower does not default on his/her EMIs. At Finserv MARKETS, an applicant can enjoy a flexible repayment tenure of 12-60 months on his/her MSME business loan.
With MSME loans at Finserv MARKETS, you get easy access to value-added services such as financial fitness reports and customized insurance plans.
The booster scheme has brought a change in the definition of what constitutes an MSME. From now on, enterprises with an investment of less than Rs.1 crore and turnover less than Rs. 5 crore will be treated as micro, while businesses with less than Rs. 10 crore investment and Rs. 50 crore will be considered under the small category. The businesses that have an investment less than Rs. 20 crore and turnover less than Rs. 100 crore will fall under the medium category.
Existing MSME Classification |
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Criteria: Investment in Plant & Machinery or Equipment |
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Classification |
Micro |
Small |
Medium |
Mfg. Enterprises |
Investment<Rs. 25 Lakhs |
Investment<Rs. 5 crore |
Investment<Rs. 10 crore |
Services Enterprises |
Investment<Rs. 10 crore |
Investment<Rs. 2 crore |
Investment<Rs. 5 crore |
Revised MSME Classification |
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Composite Criteria: Investment and Annual Turnover |
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Classification |
Micro |
Small |
Medium |
Manufacturing & Services |
Investment<Rs. 1 crore Turnover<Rs. 5 crore |
Investment<Rs. 10 crore Turnover<Rs. 50 crore |
Investment<Rs. 20 crore Turnover<Rs. 100 crore |
Nirmala Sitharaman also stated that these changes will help businesses in the sector to expand and still reap benefits accorded to MSMEs by the government.
An applicant needs to fulfil the following MSME business loan eligibility when applying at Finserv MARKETS-
The government with its “Atma Nirbhar Bharat Abhiyan” package revised the definition of Micro Small and Medium Enterprises (MSME). The changes are made in the favour of MSMEs, as many successful MSMEs fear to outgrow the size of what has been defined as an MSME and end up losing their entitled benefits. With the revised definitions, the MSMEs can think of expansion and still avail benefits.
Fund Based Working Capital Limits irrespective of sector/ constitution are eligible for the booster scheme. This facility should be given only to the going concern borrower as on the date of sanction.
Existing MSME units having credit limits with satisfactory credit record of at least two years are considered eligible for the scheme.
All standard accounts including (Special Mention Account) SMA-0, SMA-1 on the date of sanction irrespective of internal rating are eligible.
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
Identity Proof: Aadhar Card, Passport, Voter ID card, etc.
Address Proof: Electricity bill, Telephone bill, Passport, Aadhar Card, Driving License
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
To ease the stress of the pandemic outbreak on MSMEs, the RBI has extended loan restructuring for Micro, Small and Medium Enterprises for three months to March 31, 2021. This loan restructuring scheme is expected to give additional relief to small enterprises, over and above the government guarantee-backed emergency credit scheme for them. India Ratings and Research Agency stated that between September 2019 and April 2020, the proportion of rated mid and emerging corporates (MEC) universe in default increased to 18% from around 10%. The agency also estimates that 60% of its rated MECs qualify as MSMEs under the new definition.
MSME Loans are offered to startup owners, small business owners and women entrepreneurs on a short-term basis. The duration of MSME / SME loans is not the same everywhere and it differs from one lender to another. Lack of timely finance is one of the biggest setbacks for the growth of MSME in India. With MSME Loans it is easy to avail instant financing for the business. This helps to cover the financial requirements to carry out numerous business operations with ease.
Here are 5 smart ways to utilize the funds of an MSME / SME loan:
Inventory management is a critical part of a small business as its profits depend on the sale volumes. The MSME loan funds can help secure your inventory supply chain. Manage seasonal dips or purchasing new product samples for business sales.
MSME loans can fund the purchase of new equipment required for the business. Since, investment in plant and machinery requires heavy funding, applying for an MSME loan can be to aid such expenses without straining the company capital fund.
If a company is unable to finance for running its day-to-day expenses, the production of wares and services will eventually suffer. An SME owner can apply for MSME loans and use the funds to make sure the company runs smoothly while being able to repay maturing short-term debt and expenses that might arise in the near future.
MSME loans allow you to consolidate smaller debts and turn them into a single EMI. This helps in reducing the strain caused on the monthly budget but also helps in aligning the debt repayment along with the invoicing schedule.
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 marketing campaigns investment. An MSME / SME loan fund can help with the financing in running such a campaign for your business.
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.
Ensure all the required documentation is in place before starting the loan application process.
Make sure the MSME loan requirements are assessed before applying for the loan. Try not to overestimate or underestimate your MSME loan requirements as in both cases you will end up wasting time and money.
The business plan of your business specifies how you intend to use the loan funds and the time it might take to generate good returns from the investment.
Do not apply with multiple lenders as it will bring down your CIBIL score by several. The lender might see this as financial desperation on your part, which might lower your chances of loan approval.
Avoid making delays in your loan repayments for existing debts even if you are taking the MSME loan for debt consolidation. This will affect your credit score negatively.
Be aware of fraudulent lenders that may charge you with huge fees for MSME loan approval. A genuine lender will never ask you for an upfront fee and charge you with a percentage on disbursal of loan.
Finserv MARKETS offer affordable SME business loan interest rates, starting from 18%. In addition, nominal charges are levied as processing fees or penalties if the applicant decides to prepay or foreclose the loan.
You can initiate the MSME loan process with these easy steps-
Step 1: Fill out the online application form at Finserv MARKETS by submitting your personal and business details
Step 2: Select the amount you want to avail as an MSME loan along with the preferred repayment tenure.
Step 3: Once you submit the online application, you can get it processed and approved under 3 minutes.
You can also check your SME loan EMI with Business Loan EMI Calculator.
The registration process for MSME can be carried out online as well as offline. You can register for more than one industry with an individual registration.
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.
The interest rate on loans for SME/MSME can be charged up to an interest rate of 9.25%
Non-banking financial companies (NBFCs) can charge up to 14% on loans.
The interest scheme will cover only existing borrowers with an outstanding credit limit of up to ₹25 crores as on 29 February, and having a turnover of up to ₹100 crores.
Also, including the borrowers with up to 60 days past dues, and cover working capital and term loan facilities.
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.
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.
The process to apply for an MSME loan is quite simple and easy
18 reviews
It really worked well for me with the help of an MSME loan on Finserv MARKETS, I was able to start my own singing studio. With few documents requirements and verification, my loan got approved. Just amazing!!
Posted on 27 Jan 21
I was in great need of money for my business venture. It was just so simple and hassle-free to get a msme loan. I fulfilled the eligibility criteria. The repayment is flexible and interest rates are affordable.
Posted on 27 Jan 21
I had finances but not as much that was required. Got it going with an MSME loan. I was able to manage inventory and buy new things for my business. The repayment tenure for the loan is quite flexible too.
Posted on 25 Jan 21
I always wanted funds for my company, but I was unable to get so. My friend suggested applying for MSME loan on Finserv MARKETS. To my surprise, I got the loan very fast and i was able to use it for my business. The MSME loan has been very useful for my business. Thanks Finserv MARKETS!
Posted on 25 Jan 21
Nice Experience!! Application for msme loan online was easy, the documentation required were minimal and I qualified for the eligibility criteria as well. My loan was approved and I could use the money for by business operations hassle-free.
Posted on 23 Jan 21
A friend of mine suggested to apply for a MSME loan online on Finserv MARKETS, as I was looking for financing for my venture. I found the application process smooth and simpler. The MSME scheme is great for small businesses.
Posted on 23 Jan 21
Required financing for my online food business with MSME loan. I was able to get my business up and running in no time. It was easy for me to apply for the loan on Finserv MARKETS and the scheme is very beneficial for entrepreneurs like me.
Posted on 23 Jan 21
I had a tough time getting a loan for my business. But I was able to get a msme loan at Finserv MARKETS. The online loan process was super easy and I was able to get the money on time.
Posted on 22 Jan 21
I applied for a msme loan online and the process was smooth. I qualified for the eligibility criteria so didn’t face any difficulties in the application process. I can now successfully run my business.
Posted on 22 Jan 21
I took out a msme loan for my business that I started recently. I was impressed by the benefits the loan comes with. Overall the online process was easy to understand.
Posted on 22 Jan 21
I would like to thank Finserv MARKETS whole-heartedly for providing me a loan under the MSME loan scheme in easy steps. After checking my eligibility, I applied for the loan online. To my surprise, there were no difficulties such as tiresome paperwork. The quick, online process saves times, and is very smooth.
Posted on 10 Nov 20
I required money to boost my business. Then I came across the MSME loan on Finserv MARKETS. The best part of this loan is that it comes with a quick approval process. While the loan itself was approved within minutes, the loan amount was provided in my bank account within a day. Thank you Finserv MARKETS!
Posted on 10 Nov 20
Thank you Finserv MARKETS for providing me a MSME loan in simple and easy steps. I applied for the loan online, and it required minimal documentation. While the loan itself was approved within minutes, I received the loan amount within 24 hours. I need to thank Finserv MARKETS again for the hassle-free process.
Posted on 09 Nov 20
I was worried about my business in these tough times. I then applied for the MSME Loan, available on Finserv MARKETS. Thanks to the smooth documentation process, I was able to get a loan easily. I was just required to provide my identity proof, address proof, and business proof.
Posted on 09 Nov 20
Because of the pandemic, I was facing a shortage of finances for my business. I applied for an Business Loan online on Finserv MARKETS. The loan was approved within 3 minutes, and the amount disbursed in my account within 24 hours of approval.
Posted on 09 Nov 20
I am happy to have availed the business loan for SME at Finserv MARKETS. The application process was simple and documents required were minimal. I received the loan amount within 24 hours and that helped me to carry my business operations with ease.
Posted on 4 Oct 19
A friend of mine suggested me to avail business loan for MSME at Finserv MARKETS. I got the loan at a very reasonable interest rate and I couldn’t have asked for any better customer service.
Posted on 23 Mar 19
I applied for the business loan for SME at Finserv MARKETS last year and was very happy with the swift process and the flexible EMI payments.
Posted on 25 Apr 19