An MSME business loan is a special loan scheme designed to help Micro, Small, and Medium enterprises manage their various financial challenges. Such enterprises have a great contribution to the economic development of India. They provide employment to most of the working-class citizens. According to a recent report, this year, the MSME sector alone accounts for 30% of this country’s GDP.
If you are an owner of a small business, startup, small, and medium-sized organisation, you have multiple working capital requirements, such as, purchasing raw materials, maintaining stock, disbursing salaries, ad-hoc recruitment, upgrading or buying machinery, and so on.
To manage all these expenses, it is important to maintain the cash flow and an MSME business loan is the perfect solution to fulfil all your working capital needs. An MSME business loan can surely prove to be an ideal solution for solving all such financial needs and help struggling businesses with their cash flow maintenance.
Benefits of an MSME Loan
No collateral required: Since an MSME loan is usually unsecured and therefore you are not worried about pledging any personal or business assets. You can easily avail of an MSME loan from leading lenders by submitting just a handful of documents.
Longer repayment tenor: An MSME loan usually comes with a longer repayment tenor that helps you make your EMIs affordable and spread it over the longer tenor. Leading lenders provide a flexible tenor of up to 84 months for easy repayment.
Flexible withdrawals facility: Many lenders offer MSME loans with multiple withdrawal facility that lets you withdraw funds from the sanctioned limit as many as times as per your needs. However, you are supposed to pay interest-only on the amount used and not the entire sanctioned limit. Bajaj Finserv offers the exclusive Flexi facility that lets you withdraw money as per your needs and you can also choose to pay interest only EMIs for the initial tenor and lower your instalment by up to 45%*.
How to choose an MSME loan provider?
Micro, Small, and Medium enterprises need to consider the following metrics before going to a loan provider.
Processing time: It is important to do third party research to find out the lender that takes the least amount of time to process the loan. With an easy online application and quick approval process, it is possible to get funds in just 24 hours* of approval from leading lenders.
Affordable rate of interest: Look for multiple lenders and find out the lender that offers you the most affordable rate of interest with 100% transparency. So that your MSME loan does become a financial burden for you.
High-loan limit: A business owner has multiple financial needs and so you must look for a lender that offers you a high-value loan on affordable terms.
Easy eligibility criteria: One of the most important criteria to select the lender is to check for MSME loan eligibility. You should always look for a lender who has simple eligibility parameters which you can easily qualify to avail of a loan.
Hassle-free application process: It is important to avail of a loan that comes with a simple online application. Nowadays, it is easy to apply for an MSME loan online by filling simple application forms.
Once you fulfil all these parameters and find out the lender who offers you the best deal, you can easily apply for an instant business loan with flexible facilities, a high range of loan amount, and a nominal rate of interest is surely a viable option for the micro, small, and medium enterprises. They can ensure smooth operation of their day to day business activities with such finance.