What are MSME loans?

2 min read

MSME loans are unsecured loans offered by several financial institutions to help entrepreneurs meet various business-related expenses. As per the Indian government and RBI, these loans are for certain business enterprises that fall under these categories:

Company (Manufacturing or service provider)

MICRO

SMALL

MEDIUM

Investment threshold

Less than Rs. 1 crore

Less than Rs. 10 crore

Less than Rs. 20 crore

Turnover threshold

Less than Rs. 5 crore

Less than Rs. 50 crore

Less than Rs. 100 crore


Aside from an MSME loan, financial institutions also offer these loans under several government schemes like:

  • Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
  • Prime Minister’s Employment Generation Programme (PMEGP)
  • Micro Unit Development and Refinance Agency (MUDRA Loan)

MSME loans come with specific eligibility criteria, and business owners must meet all terms mentioned to avail of the benefits. Bajaj Finserv offers MSME loans of up to Rs. 50 lakh* (*Inclusive of Insurance Premium, VAS Charges, Documentation Charges, Flexi fees and Processing Fees) to help enterprises meet their immediate funding requirements. It comes with minimum eligibility and documentation requirements to simplify loan processing. This loan is available at affordable interest rates and can be repaid over a flexible tenor. With Bajaj Finserv, businesses can opt to part-prepay or foreclose the loan account before the tenor ends at nominal charges.

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