India’s small-scale business segment contributes approximately 40% to the country’s GDP (Gross Domestic Product). Also known as the SME (Small and Medium Scale Enterprises) sector, it is a key source of employment and income. Stiff competition in this sector requires entrepreneurs to scale-up, innovate and upgrade their existing setups. Business expansion is key to succeed as an SME in India.
Businesses operating in this sector thus require external financing as small scale industries loan from lenders. They can avail these loans from both government and private financial institutions. Such funds are commonly utilised to meet daily operations, expand the business, and fulfil such other requirements.
The Government of India also extends these advances through govt. loan schemes for small scale industries like –
PMMY (Pradhan Mantri Mudra Yojana)
CGSMSE (Credit Guarantee Scheme for Micro and Small Enterprises)
Stand-Up India Scheme
SMILE (SIDBI Make in India Loan for Enterprises)
Expand the firm’s infrastructure.
Install new equipment, plant & machinery.
Fulfil your business’s working capital requirement.
Meet operational expenses like overhead payments, inventory purchase and more.
Maintain cash flow of the business with external financing availed under small scale industries loan scheme.
Business type – The business should fall under microenterprise category engaged in manufacturing, trading and services industry. The loan is also available for professionals like doctors, engineers, CAs, etc.
Residential status – He/she should be a resident of India.
Age requirement – Borrower must also meet the age requirement laid down by the concerned financial institution.
Business status – Meet the business vintage requirement for a minimum of 3 years to avail a small scale industries loan from NBFCs like Bajaj Finserv.
Credit score – Fulfil the minimum credit score requirement of 750 with zero payments default for improved chances of loan approval.
KYC documents including proof of identity and proof of address, like Aadhaar card, voter ID card, PAN card, etc.
Financial documents like profit and loss statement, balance sheet, tax returns and audit reports, etc.
Bank account statements.
Fill up the online application form at the lender’s website. For offline application, obtain the form from your nearest branch to apply.
Submit all documents required to your financial institution.
Receive approval of your application.
Manage operational expenses
Up to Rs. 32 lakh | Flexible tenor options
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