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Micro, small, and medium-sized enterprises (MSMEs) form the backbone of India’s economy, owing to their considerable contribution to the country’s GDP, exports, and employment generation. At present, there are approximately 6.3 crore MSMEs in India, contributing to around 30% of India’s GDP and more than 40% of total exports. Moreover, MSMEs are the second-largest employer in India after the agriculture sector. To help these MSMEs grow and flourish without being affected by financial hurdles, Tata Capital offers MSME loans or SME loans at competitive interest rates.

What is MSME Loan/SME Loan?

An MSME loan or SME loan is a unique type of business loan provided exclusively to startup owners or small and medium-sized business enterprises in India. That is why an MSME loan/SME loan is also known as a startup business loan or simply a startup loan. An MSME loan/SME loan can be used as working capital or for long-term business requirements, such as buying equipment, upgrading infrastructure, and hiring manpower.


With Tata Capital’s MSME loan/SME loan, you can acquire funding of up to Rs. 75 lakhs and meet your various short-term and long-term business requirements. Our business loans for startups come with features like easy eligibility, minimum documentation, and doorstep services. Moreover, our MSME loan interest rate is highly competitive, starting from just 15% per annum.

Product Offerings

Along with the affordable interest rates and easy eligibility, our business loans for startups come with the following product offerings:

  • Loan Amount

    We offer a loan amount of Rs. 1 lac to Rs. 75 lakhs as a startup business loan or MSME business loan. You can choose your startup loan amount as per your precise needs

  • Loan Tenure

    Our MSME loan/SME loan is issued for a tenure of 12 months to 60 months. It means that you have the flexibility to choose your business startup loan tenure as per your repayment capability

  • Interest Rates

    We provide loans for startups at highly affordable rate of interest, starting from just 15% per annum

  • Customized Products

    Our business loans for startups are highly customizable to suit the specific needs of startup businesses. You can set the dimensions of your MSME loan/SME loan as per your exact business requirements

  • No Collateral

    We provide MSME loan for startup businesses without asking for collateral or security. It means that you are not required to pledge your personal or business assets to avail of a startup business loan from us

  • Multiple EMI Options

    Our business loans for startups come with multiple EMI options. You have the flexibility to choose a suitable EMI plan for your MSME startup loan and structure your startup loan repayment according to your cash flow

  • Easy Eligibility

    We understand that startup business finds it difficult to get a loan for SME in India. That is why we offer MSME business loans for startups with relatively easy eligibility criteria. Our MSME loan eligibility and MSME loan process are simple and hassle-free

Features and Advantages of MSME Loan/SME Loan

As an MSME or SME owner, you can avail of an MSME loan/SME loan from Tata Capital and fulfill all your business's financial requirements. Our MSME business loan is easy to get and offers the following advantages:

Get Access to Working Capital

Adequate working capital is essential for conducting day-to-day business operations. You can use our SME business loan to meet your business’ working capital requirements. Be it paying for the inventory, clearing short-term debts, or remunerating your monthly utility bills; you can manage all short-term requirements of your business through a startup business loan.

Update Your Infrastructure

By availing of an MSME business loan, upgrading your workplace infrastructure can become an inexpensive task. Our business loans for startups are meant to provide high-value financing to small business owners at affordable interest rates.

Hire Competent Personnel

No business can thrive without efficient and competent staff. Our startup business loan can ensure that the lack of funds can never deter you from hiring the best workforce for your business. We provide startup loan for new businesses as well as established enterprises so that they can achieve greater heights.

Expand Your Business

The expansion of business may demand significant finances. But with the availability of business loans for startups, you don’t have to worry about arranging finances for your business expansion. You can simply avail of an MSME startup loan and meet all your financial requirements without any hassles.

What are the Eligibility Criteria for MSME Loan/SME Loan?

The eligibility criteria and documents required for MSME loan may vary from one lending institution to another. If you want to avail of an MSME business loan from Tata Capital, you must meet the following MSME loan eligibility criteria:

    • Age- To be eligible for our startup business loan, your age must be between 21 and 65 years

    • Business Profitability - We provide business loans for startups to those businesses which have shown consistent profits for at least the past three years

    • Business Turnover - Your business turnover must indicate an upward trend if you want to apply for our MSME loan scheme

    • Balance Sheet - The balance sheet of your business must be audited by a registered Chartered Accountant if you want to avail of our MSME loan for startup business

  • Please note that our MSME loan process may involve some other eligibility requirements as well.

What are the Interest Rates and Charges for MSME Loan/SME Loan?

Just like any other loan, business loans for startups involve certain charges and fees. These charges can be classified into three categories - General Charges, Miscellaneous Charges, and Foreclosure Charges. The details of the charges applicable on Tata Capital’s business startup loan are mentioned below:

General Charges

Below are the general charges applicable on our MSME loan/SME loan:

Interest Rate

Starts at 15% p.a.*

Processing Fee

2.50% of the loan amount + GST

Stamp Duty

As Applicable

Penal/Additional Interest Rate

3% on Overdue amount per month + GST

  • Interest Rate - The rate at which you’ll have to pay interest on your startup business loan is known as the interest rate. Our interest rates on business loans for startups start from 15% per annum
  • Processing Fee - We charge a one-time processing fee at the time of the MSME loan apply. This processing fee is non-refundable even if the loan doesn’t get sanctioned
  • Stamp Duty - We charge a legal fee - known as stamp duty - for the preparation of the SME business loan agreement. This fee may vary from one state to another
  • Penal Interest or Additional Interest - In the case of delayed EMI payment of your startup business loan, we will charge an additional interest over and above your existing startup loan interest rate

Miscellaneous Charges

Below are the miscellaneous charges that would apply to your MSME loan/SME loan:

Dishonor/Bounce Charges

Rs. 2,000 for every cheque/Payment Instrument Dishonour + GST

Mandate Rejection Service Charge

Rs. 450 + GST

CCOD Annual Maintenance Charges

0.25% on Dropline amount or Rs. 1,000, whichever is higher per year

Document Processing Fees

Rs. 1999 + GST

Outstation Collection Charges

Rs. 100 + GST per repayment tenure

Statement of Accounts (SOA)

Soft Copy – Nil.

Branch Walk-in – Rs. 250 + GST

Loan Cancellation Charges

2% of the loan amount or Rs. 5,750, whichever is higher + GST

Payment Instrument Swapping

Rs. 550 + GST

Duplicate Repayment Schedule

Soft Copy – Nil

Branch Walk-In – Rs. 550 + GST

Duplicate NOC

Rs. 550 + GST

Post-dated Cheque Charges

Rs. 850 + GST

  • Bounce Charges - Bounce charges or dishonor charges will be levied if your EMI gets bounced. This usually happens due to the lack of funds in your bank account
  • Mandate Rejection Service Charge - A mandate rejection service charge is levied if you reject any of the services rendered by us
  • CCOD Annual Maintenance Charge - We also provide a Cash Credit (CC) or Overdraft (OD) facility on our business loans for startups. However, this facility accompanies CCOD annual maintenance charges for the maintenance of CC or OD accounts
  • Document Processing Charge - When you apply for an MSME loan, we have to process certain documents, such as loan agreement, indexing, etc. We levy a document processing charge for processing such documents
  • Outstation Collection Charge - If you’ve issued your payment cheques to a non-local branch, we’ll levy an outstation collection charge for the collection of these cheques
  • Statement of Accounts - To issue a hard copy of your Statement of Account, i.e., the list of transactions made from your bank account during a given period, we’ll collect a nominal fee. However, a soft copy is issued free of charge
  • Loan Cancellation Charges - If you wish to apply for the cancellation of your loan after its disbursal, we’ll levy loan cancellation charges
  • Payment Instrument Swapping - Swapping or exchanging your payment mode with a different financial instrument will attract payment instrument swapping charges
  • Duplicate Repayment Schedule - We will issue your original loan repayment or amortization schedule for free. However, the issuance of a duplicate repayment schedule will attract certain charges
  • Duplicate NOC - Once you’ve paid all EMIs of your business startup loan, we will send a No Objection Certificate (NOC) to your mailing address. But if you end up losing this NOC, we will issue a duplicate NOC after collecting a duplicate NOC fee
  • Post-Dated Cheque Charges - You can make your EMI payments via post-dated cheques or PDCs. However, you will be charged with PDC charges for this

Foreclosure Charges

Below are the foreclosure charges applicable on our MSME loan/SME loan:

Foreclosure Charges

  • 4.5% of the principal outstanding on existing loan + GST
  • No foreclosure allowed for the first nine months

Foreclosure Charges for Top-up

  • 2.25% on the principal outstanding on the existing + GST
  • Foreclosure charges shall be levied only if the new rate is lower than the existing rate

Foreclosure Charges for CCOD

  • 4.5% on the Dropped Down limit amount + GST
  • No foreclosure is allowed for the first nine months

Foreclosure Letter Charge

  • Soft Copy – Nil
  • Branch Walk-In – Rs. 199 + GST
  • Foreclosure Charges - You can choose to foreclose your SME loan by making prepayments or part prepayments on it. However, every time you make a prepayment on your SME business loan, you will have to pay a foreclosure charge
  • Foreclosure Charges for Top-Up - You can also avail of a top-up loan on your SME loan. But if you wish to foreclose your top-up loan before the end of its tenure, you will have to pay a foreclosure charge on the top-up loan
  • Foreclosure Charges on CCOD - You can benefit from our flexible funding options, such as CC and OD limit facilities on business loans for startups. Upon the foreclosure of our CCOD account, you will be charged with a foreclosure charge on CCOD
  • Foreclosure Letter Charge - If you’ve opted to foreclose a loan, you will need a foreclosure letter from us. Although the soft copy of this letter is free, the hard copy is chargeable

How to Apply for a Tata CapitalMSME Loan/SME Loan?

How to Apply for a Tata Capital MSME Loan/SME Loan?

Several lenders provide loan for SME in India. With Tata Capital, the MSME loan apply process is simple and hassle-free. You can do it in any of the following ways:

  • Branch

    You can physically visit your nearest Tata Capital branch and get in touch with our representative to apply for an MSME loan

How to Apply for a Tata Capital MSME Loan/SME Loan?

Several lenders provide loan for SME in India. With Tata Capital, the MSME loan apply process is simple and hassle-free. You can do it in any of the following ways:

  • Online

    You can visit our website for MSME loan apply online from the convenience of your home or office

  • Virtual Assistant

    You can take the help of our 24x7 virtual assistant for MSME loan apply anytime and from anywhere

  • Phone Call

    You can dial our customer care number 1860 267 6060 between 9 am and 8 pm on Monday to Saturday to apply for an MSME loan through your mobile phone


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What our customers say about us

We are fully satisfied about Tata Capital's services. Just want to say great experiences with customer services and timely response.


Business Loan | 10 April, 2023

It was extraordinary work by Tata Capital upto now. There are no more suggestions.


Business Loan | 17 February, 2023

Overall experience with Tata Capital was up to the mark.


Business Loan | 16 February, 2023

I was impressed with the way your staff handles their customers and if i come accross any family or friend who may be looking for any financial assistance, I shall surely recommend Tata capital


Business Loan | 24 December, 2022

Great service for people like me who really have to grow their bussiness thank you TATA CAPITAL


Business Loan | 07 December, 2022

It's a good experience with the Tata Capital team I am very impressed with your services


Business Loan | 01 November, 2022

My name is Sukanya, and I own a gym. To fund my gym, I took out a business loan from Tata Capital, and I was wowed by how quickly and smoothly the process went. Every time I need a loan for my business, I'm going to select Tata Capital.

Sukanya Giri

Business Loan | 13 March, 2022

I operate an online business and required a loan to fund it. I tried many banks at first, but there was a lot of paperwork involved, and I was unable to obtain a loan. After that, I filed for a Tata Capital Business Loan, which they granted me at a very reasonable interest rate. They offered highly flexible repayment alternatives, as well as excellent customer service that guided me through the entire process. Because of the simple process, I was able to get a loan for my online business without any complications.

Karan Sanghavi

Business Loan | 10 March, 2022

I had just started my business and was unfamiliar with the concept of taking out a loan, but Tata Capital made it extremely easy for me. With my loan, I received wonderful assistance. It is a hassle-free service with a speedy turnaround time and competitive interest rates.

Prakash Mehta

Business Loan | 21 February, 2022

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