India's booming economy has deliberately paved the way for numerous SMEs and MSMEs to come into existence. Besides, it has become extremely easy to avail of SME/MSME loans to meet the requirements of your business's working capital.
An MSME loan is provided to MSMEs, startups, individuals, entrepreneurs, business owners, self-employed professionals, and other business entities. This credit facility is granted for business expansion, upgrading the company's infrastructure, purchasing raw materials, repairing factory machinery, etc.
You can easily avail of SME/MSME loans at Piramal Finance to expand or set up your business. Please note that the MSME business loan interest rate will vary according to the applicant's profile.
What are the Features and Benefits of SME/MSME Loans at Piramal Finance?
You can experience plenty of benefits if you choose an MSME loan and apply online through Piramal Finance. Some of the key features of availing SME loans at Piramal Finance are:
Zero Collateral
Many financial institutions demand collateral against business loans. But the SME/MSME loans at Piramal Finance are unsecured. This means you won't need to pledge any collateral while availing of this loan.
Quick Approval
You can easily apply for an SME/MSME loan online through our website and get it approved at the earliest. This online procedure will not just save you time but also ensure that your request is processed quickly. The loan amount will be disbursed into your bank account within 24 hours of approval.
Flexible Loan Repayment Tenure
The loan repayment tenure must be comfortable only to ensure that you don't default on your EMIs. At Piramal Finance, you will enjoy a flexible repayment tenure on your MSME loan for new business.
Higher Loan
According to the planned expansion scale, the requisite funds for a particular business are likely to vary. So, we offer MSME loans for startup businesses with a higher loan limit of INR 20 lakhs.
What are the Eligibility Criteria for SME/MSME Loans?
The MSME loan eligibility criteria differ from one loan provider to another. However, you need to fulfill some of the MSME loan criteria to become eligible for availing of an MSME/SME loan. They include:
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As an applicant for SME lending, you should be at least 21 years and at most 60 years of age.
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Your business should have valid proof for filing IT returns for the previous year.
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Your business should have been running successfully for the past three years.
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You should not hold any past record of loan default either in your name or your business's name.
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Your credit score should be at least 750 or more. However, Piramal Finance provides loans to people with low credit scores.
Eligible entities that can apply for an MSME business loan include:
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Proprietorships
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Partnership firms
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Hindu Undivided Families (HUV)
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Limited companies
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Self-employed professionals
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Women entrepreneurs
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Limited liability partnerships
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Private limited companies
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Co-operative societies, etc
What are the Documents Required for MSME/SME Loans?
While you apply for an MSME/SME loan for your business, you need to submit the following documents:
- Proof of Identity
- You need to submit your Aadhaar Card, voter ID card, or passport as proof of your age and identity.
- Proof of Residential Address
- You can submit your telephone, electricity, or any other utility bill that will prove your residential address. Providing your Aadhaar card, passport, or driver's license will also suffice.
- Proof of Business
- You are required to provide a valid certificate proving your business's existence. You must also submit your previous financial year's income tax filings and your profit and loss statements for the past three years.
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- Please note that you must also provide two passport-size photographs and your duly completed application form.
What are the MSME/SME Loan Schemes Initiated by the Government of India?
The MSME loans initiated under the Ministry of MSME (MoMSME) are offered explicitly to MSMEs and SMEs by numerous banking and non-banking financial companies. Here, we have listed some of the popular MSME schemes offered by different financial institutions and initiated by the Government of India:
- CLCSS: Credit Linked Capital Subsidy Scheme
- CGTMSE: Credit Guarantee Fund Trust for Micro and Small Enterprises
- MUDRA Yojana under PMMY
- Credit Guarantee Scheme
- PMEGP: The Prime Minister Employment Generation Programme
- National Small Industries Corporation (NSIC) Subsidy
- PSB Loans in 59 minutes under SIDBI
- PMRY: Prime Minister’s Rozgar Yojana
- Startup India
- Standup India
How Should You Apply for an SME/MSME Loan at Piramal Finance?
If the MSME interest rate and the loan amount of Piramal Finance satisfy you, you can easily apply for it. You can register your business for an MSME loan online by following a few steps. They include:
Step 1: Go to the Piramal Finance MSME Loan page. Read the features and eligibility criteria, and start the application process.
Step 2: Click on Apply Now
Step 3: Fill in the required Personal details such as Name, Contact Number, Birth Year, and MSME Loan Amount.
Step 4: Choose the employment type 'Salaried' OR 'Self-Employed'
Step 5: Add your monthly income
Step 6: Select the State and branch (enter the branch by city) and Submit the MSME loan application form.
Step 7: Wait for a call from the official representative to move ahead with the processes.
After completing all the steps, like scanning, uploading the required documents, and paying the processing fees, wait until your MSME loan application is approved.
Things to Remember Before Applying for an MSME Loan
Here are a few things that you should remember before applying for MSME Loans:
- Check your CIBIL score before applying for an MSME loan.
- You must thoroughly assess your MSME loan requirements before applying for the loan.
- Make sure that you've gathered all the requisite documents before proceeding with the MSME loan application procedure.
Business Loan Calculators
Types of Business Loan
Business Loan for Doctors
It provides medical practitioners with capital to expand the practices, invest in equipment, hire staff, or cover operational expenses to enhance patient care.
Short Term Loans
Short term loan offers you access to a relatively small amount of capital for a brief period, making them ideal for addressing immediate financial needs with quicker repayment schedules.
Startup Business Loans
The loan provides funding to new and emerging companies, helping them cover initial expenses, invest in growth, and establish their presence in the market.
Term Loan
Term loan provides a fixed amount of money, repaid over a specified period through regular installments. It is commonly used for business expansion or capital investments.
Loan for Restaurant
Restaurant loan provides funding for your various restaurant-related expenses, such as opening a new establishment, purchasing equipment, or covering working capital needs.
Franchise Finance
Franchise finance is a specialised funding option tailored to entrepreneurs looking to invest in or expand a franchise business.
Shop Loan
Shop loan is designed to assist retail shops in managing expenses, restocking inventory, or making necessary upgrades to the storefronts.
Supply Chain Finance
Supply Chain Finance ensures smooth operations and reduces working capital constraints, benefiting buyers and suppliers.
Medical Equipment Loan
Medical equipment loan helps healthcare providers and organisations to acquire essential medical devices and equipment without a substantial upfront cost.
Machinery Loan
Machinery loan provides capital for the purchase, repair, or upgrade of machinery and equipment, enabling businesses to enhance productivity and efficiency in the operations.
Hotel Loan
Hotel loan assists entrepreneurs and investors in the hospitality industry with funding for hotel acquisitions, renovations, expansions, or new construction.
Working Capital Secured Business Loan
Don't let the lack of funds come in the way of business success. Leverage your passive assets such as residential.
Business Loan for Traders
It provides traders and merchants with capital to purchase inventory, manage cash flow, or expand the trade operations, facilitating growth and stability in the trading business.
Loan Against Property
If you are growing business and often face cash flow issues, you cqn use our Loan Against Property to resolve these Issues
Self-employed Loan
It offers financial assistance to independent entrepreneurs and freelancers, enabling them to invest in the businesses, cover expenses, or seize growth.
Inventory Financing
It helps businesses purchase or manage the inventory. It provides capital to acquire goods for sale, maintain stock levels, and meet customer demand.
Manufacturers Loan
It helps manufacturers enhance operations & competition by upgrading machinery, expanding production capacity or managing working capital
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