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MSME Loan

Post the Covid-19 pandemic, business people and industrialists have realised the need to go digital. The pandemic saw large chunks of the population losing their jobs, which has led to a surge in the number of people looking to start a new business.

Investment is the key, whether you are looking forward to starting a new one or expanding your existing business or planning to enter the digital world. A business loan can help you get the required money. You can apply for an MSME loan for a new business or running an existing one- these loans are specially designed for small to medium enterprises.


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

The loans which are designed keeping in mind the criteria of a small or medium enterprise so that this can meet financial needs for different sectors of the business is what we call MSME loan. FlexiLoans is a renowned online platform that has been working on resolving the money matter through their various business loan schemes.

SME plays a vital role in the Indian economy as this is the sector where there is incredible employment opportunity, especially in rural areas. Thus, it is often called the sunshine sector. That is why the popularity of the SME loan is growing with every passing day.


Features Of MSME Loan

  • MSME Finance:

    Minimum loan amount starting from ₹50,000 to maximum ₹10 crores to finance all your business needs.

  • Quick processing:

    Your loan will be approved within 3 business days with us due to our expedited disbursement process. You can comfortably obtain a loan of up to Rs 10 crores. We make every effort to minimise the time necessary to implement the loan and also to 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 ranging from 50,000 to 1 crores: 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 48 Months:

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

  • There Are No Hidden Fees:

    The loan quotes you get online contain the full amount you owe. Application costs are usually set at 2% of the loan volume. You may not need to be concerned with secret fees or other additional expenses.

  • Documentation in Digital Format:

    The entire loan process is conducted electronically, 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. If the loan is approved, the funds are electronically transferred into the bank.

  • Repayment Options:

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


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 funds are disbursed to the applicant's account within 48 hours of signing the document.


Benefits Of MSME Loan

  • Reliability:

    In the current Indian economic climate, running a company can be challenging. There will be instances when funds are limited due to the seasonality of demand and various other factors. Obtaining an MSME loan is simple and easy. The loan amount is disbursed quickly, and the paperwork required is limited. 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, in hand, in a business context, the better suited 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 used mainly by small companies for short-term needs. Since the borrower is not expected to make a long-term commitment, this agreement gives the borrower more stability. A short-term business loan also helps the management room to control the cash flow and deploy available capital effectively.

  • Full Capital Control:

    A small business would still need to meet the 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 the power of the enterprise. MSME loans are tailored primarily 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 times 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 unsecured, 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 can be used for a variety of 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 available money. Since MSME loans are tailored 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.


When is the best time to take out an MSME loan?

In 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 funding for promotion and advertisement

  • You need funds to renovate the company

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.
  • Offers MSME loans to those businesses that have been running for at least a year and have monthly total sales of at least ₹2,00,000
  • 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 so that it could be submitted during the application process.


MSME Loan Interest Rate & Fees

Types of Fees Applicable Charges
Interest Rate Starting from 1% per month
Loan Amount ₹50,000 to ₹1 Crore
Loan Tenure Up to 48 months
Processing Fee 2% of the loan amount

Get MSME Loan Without Collateral at Flexiloans

Companies do not need to put up any collateral to be approved for MSME loans. 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 went wrong. Collateral Free Loans for MSME 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 anytime you need it.


Check EMI for MSME Loan

The monthly payment you must pay to the lending company is determined by the sum you need, the maturity period, and the interest rate. 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 indeed 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

Documents Required for MSME Business Loan

  • Personal KYC: PAN card<
  • Residential Address Proof (Anyone): Rent agreement, driver’s license, Voter’s ID, Ration card, Aadhaar Card, Passport
  • Banking: Last six months’ current account bank statement
  • Business KYC (Anyone): GST registration certificate, shops and establishment certificate
  • Financial documents (For loans greater than 20 Lakhs): 2 years Audited financials, Last 2yrs ITR, GST Returns of 6 months

Financing your company is no longer a daunting task in today's world, thanks to a multitude of available choices. We ensure this by 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, ascertain the loan amount of urgency. If this is established, simply follow the very first 4 phases and contact us to apply for a business loan.


Frequently asked questions

How to apply for an MSME loan without collateral?

To apply for an MSME business loan click on the link here. Fill the loan application and upload the documents online our team will then contact you regarding the loan.

What are the purposes for which I can get a MSME loan via FlexiLoans?

FlexiLoans is here to provide you financial access for your business funding needs. You have to undergo simple and transparent Credit Evaluation, basic documentation before we disburse the loan. You may get loans via FlexiLoans for:
  • Expanding your business
  • Servicing regular working capital needs
  • Managing seasonal working capital requirements
  • Manage short term cash flow gaps

Why should I avail MSME loan via FlexiLoans?

Quick credit assessment ensures fast disbursal of loan at best rates and flexible terms, thus providing financial access at a click! Our business is to help you grow your business.

What is the Rate of Interest on MSME Loan?

Business loan Interest rates start at as low as 1% per month. However, it may depend on various factors like your loan amount, tenure, eligibility, etc.

What documents are required to apply for a MSME loan?

KYC document

  • - Pan card

Proof of residential address (any one)

  • - Rent Agreement
  • - Driving License
  • - Voter's ID
  • - Ration Card
  • - Passport

Banking

  • - Last 6 months of bank statement of current account

Business KYC (any one)

  • - GST Registration Certificate
  • - Shop Establishment Certificate

Financial documents (For loans greater than 20 Lakhs)

  • - 2 years Audited financials
  • - Last 2yrs ITR
  • - GST Returns of 6 months

Are there any charges other than interest rate that I have to pay to avail the MSME loan?

We may charge processing fee to facilitate the loan towards legal and documentation charges. You may be charged penal charges for late or irregular payment behavior.

Who can get a MSME business loan?

At FlexiLoans to those businesses whose business has been running for at least 1 year and has monthly total sales of at least ₹2,00,000

Can I apply for an MSME loan for a supermarket?

Yes, you can apply.

How can I check my MSME loan details and EMI due date?

Send an email on connect2@flexiloans.com to get the details of your loan.

What are the processing fees for MSME loans?

We charge a processing fee of 2% depending on your loan amount.

How do I register my business with MSME?

If you are looking to register your business with MSME then follow our detailed guidelines on MSME registration process. You can apply by following the process of MSME registration for your existing company if it was not registered earlier under MSME.

FlexiLoans is here to provide you financial access for your business funding needs. You have to undergo simple and transparent Credit Evaluation, basic documentation before we disburse the loan. You may get loans via FlexiLoans for:

  • Expanding your business
  • Servicing regular working capital needs
  • Managing seasonal working capital requirements
  • Manage short term cash flow gaps

Quick credit assessment ensures fast disbursal of loan at best rates and flexible terms, thus providing financial access at a click! Our business is to help you grow your business.

Interest rates start at as low as 1% per month. However, it may depend on various factors like your loan amount, tenure, eligibility, etc.

KYC document

  • - Pan card

Proof of residential address (any one)

  • - Rent Agreement
  • - Driving License
  • - Voter's ID
  • - Ration Card
  • - Passport

Banking

  • - Last 6 months of bank statement of current account

Business KYC (any one)

  • - GST Registration Certificate
  • - Shop Establishment Certificate

Financial documents (For loans greater than 20 Lakhs)

  • - 2 years Audited financials
  • - Last 2yrs ITR
  • - GST Returns of 6 months

We may charge processing fee to facilitate the loan towards legal and documentation charges.

At FlexiLoans to those businesses whose business has been running for at least 1 year and has monthly total sales of at least ₹2,00,000

Send an email on connect2@flexiloans.com to get the details of your loan.

If you are looking to register your business with MSME then follow our detailed guidelines on the MSME registration process. You can apply by following the process of MSME registration for your existing company if it was not registered earlier under MSME.