MSME loans are unsecured loans offered by several financial institutions to meet various business related expenses on credit. Such loans come with specific eligibility criteria which the applicant needs to meet. MSME loans are defined by the Indian Government and RBI as loans for business enterprises for support in terms of finance, infrastructure and other areas.
Financial institutions also offer these loans under several government schemes like –
• Credit Guarantee Funds Trust for Micro and Small Enterprises (CGTMSE)
• Prime Minister’s Employment Generation Programme (PMEGP)
• Micro Unit Development and Refinance Agency (MUDRA Loan)
Businesses must meet specific eligibility criteria mentioned under the schemes to enjoy the benefits extended by an MSME loan.
After what is MSME loan, also know that loans for MSMEs (Micro, Small and Medium Enterprises) come with variable tenor, making these advances conveniently affordable.
Bajaj Finserv offers MSME Loans of up to Rs.20 lakh to help enterprises meet their immediate funding requirements. It comes with minimum eligibility and documentation requirements to simplify the process of availing a loan.
Available at affordable interest rates, the loan can be repaid in easy EMIs over the tenor. With Bajaj Finserv, businesses can also opt to part-prepay or foreclose the loan account before the tenor ends at nominal charges. This borrower-friendly feature helps repay the loans affordably. The MSME definition has been revised by the government. As per the new categorisation of MSMEs, three changes are now made–
• An increase in investment limit for all three categories, i.e., micro, small and medium
• Introduction of turnover-based classification
• No distinction between companies in the manufacturing or service sector. Classification would be based on the above two criteria
The new threshold brings many smaller companies in the ambit of MSME classification. A turnover-based classification also increases transparency in a company’s identification as an MSME as the government can refer to the available GST data for turnover verification requirements.
Below is the revised MSME classification-
|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|
• Applicants can avail the MSME loan of up to Rs.20 lakh within 2 days.
• Exclusive pre-approved offers help MSMEs avail financing instantly.
Funds to upgrade machinery
Up to Rs. 20 lakh | Pay only interest as EMI
Convert your existing loan | Pay lower EMIs by up to 56%KNOW MORE
Manage operational expenses
Up to Rs. 20 lakh | Flexible tenor options
Avail customized loans
Up to Rs. 20 lakh | Minimal documentation