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An MSME loan is a perfect financial solution for meeting planned and unplanned expenses of a small business. You can get this collateral-free loan at attractive interest rates. 


You also benefit from complete transparency, ensuring zero hidden charges and allowing you to borrow hassle free.

MSME Loan Interest Rate by Banks/NBFCs

Here is an overview of interest rates for MSME loans set by India's leading financial institutions:


Interest Rate


8.30% onwards (SME Loan)

Kotak Mahindra Bank

15% onwards

Axis Bank

15% onwards


16% onwards


12% onwards

SMGF India

17% onwards


18% onwards

Lendingkart Finance

15% onwards


18% onwards

IIFL Finance

18% onwards

Hero Fincorp

18% onwards

Indifi Finance

16% onwards

NeoGrowth Finance

18% onwards

Tata Capital Finance

18% onwards

RBL Bank

19% onwards


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

Disclaimer: The above-mentioned values are subject to change as per the policies of the financial institution.

How to Calculate EMI of MSME Loan

Manual calculation of a monthly instalment can be a time-consuming process. As such, the MSME Loan EMI Calculator becomes a better and simpler alternative as it gives accurate results within minutes. You can calculate the EMI amounts for an MSME loan by feeding in the following details into the calculator:

  • Principal

  • Rate of interest

  • Tenure


You can try different combinations of loan terms to determine which offer best suits your budget. You can also apply for an affordable business loan through Bajaj Markets. This platform offers a simple online application process with minimal documentation and various other benefits.

FAQs on the MSME Loan Interest Rate of 2023

The eligibility criteria for MSME loans vary from bank to bank. However, typically, Indian citizens between 24 and 70 years of age who are either self-employed professionals or non-professionals can apply. 


Limited liability partnerships, private companies and partnerships with a minimum of 3 years of business vintage are also eligible.

Yes, the MSME sector comes under the priority sector. Other sectors like education, agriculture, housing, and the export sector also fall under the priority sector.

No, you do not need to provide collateral for MSME loans since they are typically collateral-free loans.

No, it is not compulsory to have a credit rating to get an MSME loan. However, if you have a high credit rating, you can get lower interest rates, high loan amounts and other benefits. 

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