MSME Loan Interest Rate 2022

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.

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.

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.