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Apoorv Chaudhary
by on July 7, 2021
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MSME refers to micro, small, and medium enterprises; it is sometimes abbreviated as SME, which stands for small and medium enterprises. However, MSME Loans and SME Loans are essentially the same and are available to organizations that fit into these two categories. These loans are typically granted on a short-term basis to start-up owners, small business owners, and women entrepreneurs. 

The time duration of MSME / SME loans varies depending on the lender. Because MSME / SME loans are unsecured, there are some minimum eligibility restrictions in place to protect lenders. 

Features of MSME Loans  

  • MSME/SME loan amount  

The loan amount is offered to the individuals for the loan amount of Rs. 45 lakhs to finance all your business needs.  

  • Quick Processing  

MSME Loans are offering collateral-free funds with an easy online application process and approval under 24 hours.  

  • Flexi loan facility  

The applicant can borrow and prepay funds to suit the user’s dynamic business requirements as MSME/SME funding makes flexible. One can easily make multiple withdrawals on your loan, as the user only pays interest on the loan amount, thus, EMIs are offered up to 45%.  

  • Minimal documents required  

The customer of SME/MSME finance has never been easier as the user needs to submit 2 documents to the bank representative who comes to collect them at your doorstep.   

  • Flexible tenure 

The applicant can get flexible repayment tenure of up to 84 months that fits the budget.  

  • Online management  

The applicant can manage the loan account with just a few clicks and access the funds easily.  

  • Preapproved offers  

One can easily grow their business with SME/MSME funding from Afinoz. Check out the pre-approved offer to avail of the loan without waiting for it.  

Eligibility criteria of MSME/SME Loan 

Afinoz has simplified the eligibility standards to the bare minimum in order to expedite the processing of MSME / SME loans. The banks providing MSME Loans never ask for a lot of paperwork or documentation that can slow down the loan acceptance process. 

  • An applicant must be a minimum of 25 years and a maximum of 55 years at the time of loan maturity.  
  • A well-established company that has been in operation for at least six months. 
  • In the three months before your loan application, you must have had a minimum turnover of Rs. 90,000 or more. 
  • The company should not be on the SBA's "blacklist" or "excluded" list. 
  • Your company's physical location should not be on the list of unfavorable locations. 
  • Small company loans are not available to trusts, NGOs, or charity organizations. 
  • Udyog Aadhaar: MSMEs must get a Udyog Aadhaar Memorandum (UAM) for their operating units. For upcoming units, it is not required. You can register as an MSME with UAM by going to the bank's online website. 

Note: If you're not sure if your company is eligible for a limited category or location, please contact Afinoz.com to find out. 

Documents required for MSME Loans 

  • The paperwork needed to apply for an MSME Loan is listed below. 
  • Aadhar Card, Passport, Voter ID Card, and other forms of identification must be submitted by the applicant. 
  • The applicant must provide proof of address, such as a utility bill, a telephone bill, a passport, an Aadhar card, and a driver's license. 
  • Business proof, such as a certificate of incorporation, income tax returns, profit and loss bank statements for the last three years, and so on. 
  • 2 pictures of the applicant (passport size). 

MSME Loans highlights  

It can be easy to apply for MSME/SME Loan at low interest rates, flexible tenure, eligibility check, and other highlights for availing the loan.  

Customized Interest Rates  

15% up to 27%  

Processing Fees 

2-3% 

Loan Tenure 

Maximum of 3 years 

Pre-closure Charges 

Nil 

Eligibility Criteria 

More than Rs. 90,000 turnover for 3 Months 

Loan Amount 

From Rs. 50,000 up to Rs. 2 crore 

Installments 

Flexible Monthly / Bi-weekly 

How to apply for MSME/SME Loan?  

Afinoz.com offers MSME loans with enticing features and perks to help you build your business. You can use an MSME Loan to meet all of your company's financial needs and cover a variety of business expenses such as purchasing new machinery, increasing working capital, taking on bulk orders, and so on. 

If you're looking for information on how to apply for an MSME loan online, look no further. The application process for an MSME loan is straightforward. You can start the MSME loan procedure by following these simple steps: 

  • Step 1: Fill out the Afinoz.com online loan application form by providing your personal and business information. 
  • Step 2: Carefully pick the loan amount you require as an MSME loan, as well as the payback term you prefer. 
  • Step 3: After submitting your online application, it will be accepted in 3 minutes. 

Note: You can use an online business loan EMI calculator to receive an approximation of your loan amount. 

Conclusion  

Many government-sponsored initiatives are available through banks and are expressly geared to aid MSME projects, with cheap borrowing rates and no collateral security requirements. You can simply obtain MSME and SME business loans from Afinoz to start or expand your firm. Low-interest rates are combined with a slew of other MSME loan perks, such as access to a line of credit. 

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