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How about checking some pre-approved offers you might be eligible for?

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

 

An MSME loan is a perfect financial solution for an individual who would like to meet the planned/unplanned expenses of the humble venture they have recently established. This collateral-free form of a loan is provided at an attractive interest rate to those who need it. Additionally, the processing fee for the same is fairly nominal as an MSME Loan attracts a processing fee that will not go beyond 2% of the sanctioned amount. It must also be noted that there are no hidden charges since all of the terms and conditions laid out have been mentioned transparently so that the applicant has a clear idea of the same.

MSME Business Loan Interest Rate

You will find a list of the various fees that an MSME loan attracts below.

Category of Fees

Charges that are Applicable

Interest Rate

17% p.a. onwards

Processing fees

Up to 3% of the loan amount (2% + taxes)

CHARGES FOR DOCUMENTS/STATEMENTS

Account Statement/Foreclosure/Repayment Schedule

A Letter/NOC/Certificate of Interest/Documents list

You can download your letters/e-statements/other certificates at 0 extra costs. One can do so by simply logging into the Customer Portal of agencies such as Experia or CIBIL. Alternatively, you can get a physical copy of your statements/certificates/letters/List of Documents from any of the branches of the bank that has disbursed the MSME loan for ₹50/- (Which is also Inclusive of taxes) as per the statement/letter/certificate.

Bounce Charges

Up to ₹3000 (Which is also Inclusive of the Applicable Taxes)

Penal interest

2% per month + taxes which are applicable

Charges for Document Processing

₹1449 + applicable taxes

Outstation collection charges

₹65 + taxes which are applicable as per the repayment instrument

MSME Loan Interest Rate by Banks

Let us now look at the cost of borrowing such loans set by India's leading financial institutions. The same has been tabulated for the reader and can be found below.

Lenders

Interest Rate

SBI

8.30% onwards (SME Loan)

Kotak Mahindra Bank

15% onwards

Axis Bank

15% onwards

HDFC Bank

16% onwards

FlexiLoans

12% onwards

Fullerton India

17% onwards

ICICI Bank

18% onwards

Lendingkart Finance

15% onwards

ZipLoan

18% onwards

IIFL Finance

18% onwards

Hero Fincorp

18% onwards

Indifi Finance

18% onwards

NeoGrowth Finance

18% onwards

Tata Capital Finance

18% onwards

RBL Bank

19% onwards

SMEcorner

20% onwards

IDFC First Bank

20% onwards

HDB Financial Services Ltd.

22% onwards

PNB Business Loan

Based on your Business’s Profile

Bank of Baroda

Based on your Business’s Profile

Please Note: The interest rates of MSME loans mentioned above are subject to change and depend on the sole discretion of the bank/NBFC & RBI.

How to Calculate MSME Loan EMI

EMI stands for Equated Monthly Instalments. It is a fixed monthly payment made by the borrower to repay their loan without any hassles. This monthly instalment is made up of the principal amount and the interest amount that has been accrued. Flexible repayment tenure of up to 5 years lets the borrower spread the EMI amounts and make the credit facility affordable. On top of that, one can also use the EMI calculator tool available on Finserv MARKETS to know the exact amount which will have to be paid by the borrower every month, along with the total interest payable in a matter of mere minutes.

Manual calculation of a monthly instalment can indeed be a time-consuming process and might give you a result that you may not deem to be possible. To avoid such a scenario, one can use the MSME Loan EMI Calculator as the same is simple to use and tends to give accurate results within minutes. One can calculate their MSME loan EMI amounts by feeding in the following details:

  • Principal

  • Rate of interest

  • Tenure

Formula

EMI=P*r* (1+r) ^n/ [ (1+r) ^ n-1)

Here,

P stands for the principal or loan amount

R stands for the rate of interest

N stands for the tenure

 

With this online tool, you can also try different combinations of loan amount and tenure to arrive at an EMI that fits your repayment capacity. If you would like to learn more about the concept of MSME loans, the kinds of businesses that go for them, or if you would like to apply for an MSME loan yourself, you can do so through Finserv MARKETS.