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MSME and SME Loans

 

What is a MSME Loan?

 

Micro and Small and Medium Enterprises (MSME) are run by small entrepreneurs who provide various services within the community. A MSME loan is facility extended to micro enterprises to start micro business or improve the business.

 

Who can opt for a MSME Loan ?

 

Micro businesses encompassing small production units and rendering services can opt for the MSME loan. They can avail the loan either to start a new micro business or strengthen existing business. MSME loans are especially suited to women working in varied businesses such as catering, wellness, grooming, day care centres, flower shops and tailoring.

 

Any entrepreneur intending to start a small or medium enterprise is eligible for SME loans. An entrepreneur already running a small or medium business is also eligible for SME loans to finance any improvements needed for the enterprise to improve its business.

 

If you are above 25 years and below 65 years of age you are eligible for a MSME Loan if your business,

  • Is profitable for three previous years
  • Is stable and growing
  • Is filing ITR

MSMEs can avail a business loan amount above Rs 3 lakhs and up to Rs 50 lakhs if they can show income and ability to repay. The loan tenure is between 12 and 36 months.

 

For instance, you could be a small manufacturer or a service provider such as a hospital, nursing home or a small scale manufacturer, and if you satisfy the business loan eligibility criteria as above then you can avail the loan.

 

You could be an owner of the SME or MSME business under any type of ownership structure such as:

  • Sole proprietorship
  • Partner in a partnership firm
  • Private limited company
  • Societies
  • Trusts

 

What are the interest rates offered?

 

The MSME loan interest rate is between 11.49% and 19% depending on the financial and business profile of the MSME.

 

How much maximum amount can be given?

 

The maximum MSME loan is Rs 50 lakhs.

 

Are there special benefits or schemes for customers with low income?

 

We provide loans to any low-income generation businesses run by women within the parameters of the loan eligibility criteria. We have specials schemes for women who run MSMEs such as catering business, beauty salons and day care centers.

 

Tata Capital Advantage

 

We have created business loan products suited to SMEs and MSMEs. Our formalities are simple and include:

  • Proof of income documents
  • Ownership documents
  • Proof of capacity to repay
  • MSME Loans up to Rs 50 lakhs
  • Options for repayment
  • Loan tenure up to 36 months
  • Unsecured loan - no collaterals or guarantors required
  • Existing customers get pre-approved offers
  • Easy to use online access