Small and Medium Enterprise (SME)Business Loans

It's simple and easy. Keep FIN in mind. MSME/SME Loans are structured to assist growing companies in meeting their financial needs in a timely and simple manner. Our MSME/ SME Business Loan is the ideal source of hassle-free finance for your business With funds up to Rs.30 lakh, a special Flexi loan facility, and our MSME/SME Business Loan is the perfect source of hassle-free financing for your business, and it can be approved in as little as 24 hours.

Customers use MSME Company Loans to supplement their working capital and expand their businesses. MSME loans for new businesses are typically unsecured business loans and do not enable the borrower to have any collateral or security to the bank.

Purpose of the loan

The SME Loan is a single line of credit designed to meet the financing needs of small businesses. It can be seen as both working capital and a long-term investment. It is approved after the essence of the market, cyclical patterns, cash flow forecasts, and peak time criteria have all been taken into account.

Eligibility

This loan is available to all Small and Medium Enterprises, including Micro Enterprises and other entities as established by the MSME Act, 2006, with a specified sales turnover. The conditions for turnover vary from one lender to the next.

Security

Security/collateral is often demanded, including hypothecation of the company's cash. Depending on the loan amount, personal guarantees from all promoters, directors, and partners may be needed. If the loan amount reaches a certain threshold, a third-party guarantee might be required.

SME company loans without collateral are available at reasonable interest rates and can be repaid over time in the form of EMIs. Collateral-free loans are normally short-term loans with a 12-month repayment period, but they can last up to five years depending on the company’s needs.

Other features of SME Loans

• Flexible repayment options such as Post Dated Cheques or Electronic Clearing Services (ECS)
• Lenders offer flexible tenure ranging from 12 to 48 months
• Interest rates that are attractive in relation to the borrower's creditworthiness
• Flexible documentation
• Quick processing
• Great Repayment options

EMI on SME Loans

EMIs (Equated Monthly Instalments) divide debt into manageable financial units. Each unit includes a portion of the principal as well as the interest that has accrued. Lenders who sell flexible EMI schedules will support you in one of two ways. You will either pay off the debt quickly or splitting it down into tiny monthly payments. Alternatively, you can reduce the length of the loan payoff period by opting for bi-weekly installments. You can also get a refinance with auto-renewal for the previously accepted loan number.EMIs (Equated Monthly Instalments) divide debt into manageable financial units. Each unit includes a portion of the principal as well as the interest that has accrued. Lenders who sell flexible EMI schedules will support you in one of two ways. You will either pay off the debt quickly or splitting it down into tiny monthly payments. Alternatively, you can reduce the length of the loan payoff period by opting for bi-weekly installments. You can also get a refinance with auto-renewal for the previously accepted loan number.

SME Loan interest rate

It is determined by a number of factors, including, but not limited to, your credit background, your company's credit history, existing unpaid loans/EMIs, and other factors that represent your financial capacity and behavior. For the most up-to-date interest rates, it's best to call the lender directly.