MSME Loan

MSME loans Scheme offer comprehensive financing solutions to empower small and medium enterprises. MSME loans usually come with some of the lowest interest rates in the market, at 1% per month. You can get it approved within 3 business days, and it requires minimal paperwork that cuts through in, assuring your business can have the necessary funds.

With their flexible terms, affordable interest rates, and easy accessibility, MSME business loans have the power to unlock the potential of small businesses and fuel their growth. You can apply for MSME business loan with FlexiLoans and witness how they help turn your dreams into reality.

What is MSME (Micro Small And Medium Enterprises) loan?

An MSME (Micro, Small, and Medium Enterprises) loan is a specialized type of business loan designed to meet the unique financial needs of small and medium-sized enterprises. The advantages of these loans include flexibility of the terms, reasonable interest rates, and availability; such loans are appropriate to finance business expansion. FlexiLoans is a renowned digital platform that has been working on resolving the money matter through its various business loan schemes.

Features Of MSME Loan

• MSME Finance:

  A loan of 50,000 to 1 crore may be required to finance your business needs.

• Quick Processing:

  Approval of an MSME loan can be obtained within 3 business days with us due to our expedited disbursement process. A loan of up to Rs 1 crore is easily obtained. We make every effort to minimize the time necessary to implement the loan and also ensure that it is made accessible within the specified time span.

• FlexiLoans Platform:

  Borrow and repay funds to suit your business's fast-evolving requirements in the form of MSME funding. Amounts range from 50,000 to 1 crore. If you're trying to replace old equipment, acquire new machinery, extend your production facility, or recruit additional employees, you can conveniently obtain the loan sum that suits your unique needs.

• Maximum Loan Term of 36 Months:

  FlexiLoans provides adjustable repayment terms, allowing you to repay the loan on your terms.

• There Are No Extra Charges:

  The loan quotes you get online contain the full amount you owe. Application costs are usually set at 2% of the loan volume. You can be stress-free about secret fees or other additional expenses.

• Documentation in Digital Format:

  The loan process is electronic, from submission to acceptance and disbursement of funds

• Rapid Approval and Funding:

  No more waiting impatiently to learn the condition of your loan. Loan processing and approval are usually completed within a few business days. After approval of the loan, the funds are electronically transferred to the bank.

• Repayment Options:

  You will repay your remaining loan balance depending on your business's cash flow.

Benefits Of MSME Loan

• Reliability:

  In the current Indian economic climate, running a company can be challenging. There can be limitations on funds due to the seasonality of demand and various other factors. Obtaining an MSME loan is simple and easy. The disbursement of loans occurs quickly, and the paperwork is also the least. The approval period is very short; certain firms, such as FlexiLoans, have approval periods as low as 24 hours.

• Interest rates are lower:

  The more money you have on hand in a business context, the better prepared you are to take the risks that come with it. With low interest rates, MSME loans guarantee that only the bare minimum is expended on debt repayment, leaving the remainder available for other company needs.

• Short term:

  MSME loans are mainly useful for small companies' short-term needs. The borrower is not expected to make a long-term commitment; this agreement provides more stability to the borrower. A short-term business loan also helps the management team control cash flow and deploy available capital effectively.

• Full Capital Control:

  A small business would still need to meet its funding needs in the process of doing business. Equity is not easily obtainable, and alternative forms of financing such as angel investors and venture capitalists provide financing in exchange for a stake in the firm. A business person may dread the prospect of handing over the power of the enterprise. MSME loans are primarily intended to address the needs of small enterprises. They are an ideal source of capital for company owners seeking to escape management liquidation.

• Accelerate the transition from strategy to implementation:

  Our lightning-fast processing period enables you to go from preparation to implementation in a couple of weeks rather than weeks or months. With an MSME loan from us, you can quickly advance in brand management, increase demand, and extend the supply network.

• Retain ownership of the enterprise:

  Our MSME loans are collateral-free, which safeguards your precious assets in the event of loan default. Likewise, we do not assume ownership of your credit policies in exchange for interest, allowing you to maintain complete control of your priceless business at all times.

• Improve the company's cash management:

  Our MSME loans are flexible and have diverse purposes. You may use them to increase your activities through the acquisition of plant and equipment or the establishment of a new site, or you could just use them to streamline your working capital and general cash flow.

• Accessibility:

  MSME loans are typically used by companies for short-term needs. It is adaptable since no long-term commitment is needed. Through a short-term investment, you can more reliably control the cash balance and distribute the available money. Since SME loans are specifically designed to address the short-term needs of small companies in times of crisis, they are an ideal source of funding for entrepreneurs seeking to escape control liquidation in those circumstances. This enables them to exercise complete control of their businesses.

Use FlexiLoans MSME Loan Calculator 

Eligibility Criteria for Online MSME Loan

To ensure quicker loan approval, we kept the MSME Loans Guide short. Here is the paperwork you must provide to assure that your application is reviewed as quickly as possible.

• An individual must be 21 years of age when applying for the loan and not more than 65. 
• MSME loans are available to individual corporations, sole proprietors, and private companies involved in trading, production, or services.
• The applicant must have worked in the industry for three years and have at least five years of experience.
• Provides MSME loans to businesses that have been in operation for at least a year and have at least Rs.200,000 in monthly total sales.
• If the company has been in service for even more than 3 years, you can apply for an MSME loan.
• We would also ensure that there are no errors in previous accounts and, as such, the company is tax compliant.

Finally, verify that the paperwork is in order well in advance of applying for a loan with us and hold it in digital format to make submission feasible during the application process.

Documents Required for MSME Business Loan

• Personal KYC: Rent agreement, driver's license, voter ID, ration card, Aadhaar card, passport
• Banking: Last six months’ current account bank statement
• Business KYC (anyone): GST registration certificate, shops, and establishment certificate
• 2 years for financial documents (for loans in excess of Rs. 20 lakhs). Audited financials, last 2 years' ITR, GST Six-month returns 

Financing your company is no longer a daunting task in today's world, thanks to a multitude of available choices. We ensure this through our MSME loans, which assist entrepreneurs in starting companies and developing world-class goods capable of competing globally. It goes without saying that companies will depend on us to meet their financial obligations. However, before obtaining such a loan, determine the loan's urgency. Once established, simply follow the very first four phases and contact us to apply for a business loan.

MSME Loan Interest Rate & Fees

How to Apply for an MSME Loan Online at Flexiloans?

• Online Application:

  Log on to the FlexiLoans website and complete the application form by correctly filling in the relevant information. FlexiLoans will use these details to assess your eligibility for the MSME loan.

• Upload the required documents online:

  Upload all necessary documents, such as KYC documents, current account bank statements, and business KYC documents.

• Credit Analysis:

  We'll assess your business results and operations to calculate the amount of money you'll be eligible to borrow and the interest rates that will apply. Our loan officers will assist you in understanding the bid and making the right decision.

• Loan Disbursement:

  FlexiLoans will share the loan agreement after verifying the documentation and approving the loan. The fund is disbursed to the applicant's account within 48 hours after signing the document.

Examine EMI for MSME Loan

The sum you need, the maturity period, and the interest rate determine your monthly payment. The MSME business loan EMI calculator will help you figure out how much you'll have to pay per month.

Calculating the Equated Monthly Installment (EMI) on Business Loans

Computing an EMI manually is a time-consuming task with a high probability of error. Here is an example of a business loan. The EMI Calculator is convenient because it is fast, reliable, and simple to access while using. Everything that you have to do is input the principal (loan amount), the tenure, and the rate of interest to immediately obtain error-free data

E = P x r x (1+r)^n/ [(1+r)^n - 1]

Here,

• E - EMI
• P - Principal or loan amount
• r- The rate of interest (calculated monthly)
• n - tenure

Ways you can use your MSME Loan:

MSME loans, meaning Micro, Small, and Medium Enterprises loans, serve various purposes and you can utilise them in several ways by businesses. Here are some common uses of MSME loans:

1. Working Capital: MSME loans can help you manage day-to-day operations, such as purchasing raw materials, maintaining inventory, covering overhead costs, and managing cash flow gaps.

2. Business Expansion: MSME loans can support business growth and expansion initiatives. You can utilise these funds for opening new branches, acquiring additional equipment or machinery, expanding production capacity, or entering new markets.

3. Technology and Infrastructure Upgrades: You can use MSME loans to upgrade technological infrastructure, such as implementing new software systems, adopting automation tools, or improving manufacturing processes to enhance efficiency and productivity. You can also put your MSME loan to use for machinery upgrades.

4. Marketing and Advertising: You can utilise MSME loans for marketing and advertising campaigns to increase brand awareness, attract new customers, and expand the customer base. This includes activities like digital marketing, print advertisements, promotional events, or social media campaigns.

5. Product Development and Research: You can allocate loan funds towards product development, research, and innovation. This includes investing in research and development (R&D) activities, creating prototypes, conducting market research, or improving existing products or services.

6. Working Capital Cycle Management: MSME loans can help you manage the working capital cycles more effectively. This involves optimising the time between paying suppliers, producing goods or services, and receiving payments from customers to ensure smooth operations.

7. Business Restructuring: These loans can also help you in business restructuring, including debt consolidation, refinancing existing loans to improve interest rates or terms, or reorganising the business structure to enhance efficiency and profitability.

Dos and Don'ts While Applying for an Online MSME Loan

DOs

• Do your research. Before applying for an online MSME loan, you must research and understand the different options available. Various types of loans are available, with varying rates of interest and repayment terms, and it would be best to compare all options before choosing a loan.
• Track your repayments. Once you have taken out a loan, keeping track of your rebates is essential. This will help you stay on top of your finances and ensure you do not miss any payments.
• Have all your documents ready. When preparing to apply for an MSME loan, ensure you have all the required documents, including business registration documents, financial statements, tax returns, etc

DON'Ts

• Don't forget to read the fine print: Be sure to read the loan's terms and conditions before applying to be aware of the repayment terms, interest rates, and other charges that may be applicable.
• Do not overborrow. When applying for a loan, only borrow an amount you can afford to repay. Overborrowing can lead to financial difficulties and may damage your credit score.
• Don't provide false information. You must provide accurate information when applying for a loan. Lenders will often verify the information you provide, so it is not worth providing incorrect information to try and get a loan.

Frequently asked questions

When is the Best Time To Take Out an MSME loan?

Under the following conditions, you can accept an MSME loan:

• You're buying land in order to establish a business.
• You're developing a factory.
• You are purchasing manufacturing products such as machinery and vehicles.
• You are purchasing raw materials to fulfill the business's capital needs.
• You must pay payroll salaries, bills, and loans.
• You wish to grow your company. You want to fund promotion and advertising.
• You need funds to renovate the company

Flexiloans offers MSME loans without collateral

MSME Loans do not require companies to put up any collateral in order to be approved. Small businesses are "asset-light," which means they can't afford to keep their equipment as collateral.

Small businesses do not entrust their precious assets to banks in exchange for cash because this could affect their competitiveness if anything goes wrong. Collateral-free loans for MSMEs are generally offered to startups and small business entrepreneurs. As a result, an MSME loan for a startup business is a great way to get money whenever you need it

MSME Loan News 

1. Demand for MSME loans up in Q2 FY23

Credit demand grew by 1.9 times and 1.6 times as of September 2022 over two years for public sector banks and private banks respectively.

Small businesses can access the funds they need without risking their competitiveness or loss of valuable assets. MSME loans without collateral with Flexiloans offer a convenient and secure way for small business owners to obtain the funding they need to grow their businesses. Apply now!

Use the MSME business loan EMI calculator to determine how much you must pay monthly for your business loan.