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 Bajaj 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 Bajaj Markets.
