MSME Loan / SME Loan

In recent years, the country’s booming economy has provided momentum to the rise of several MSMEs (Micro, Small, and Medium Enterprises). To meet the unique financial needs of these entities, multiple lenders now offer specialised MSME loans in India. You can get this loan available on Bajaj Markets at low interest rates starting from just 14% p.a. Borrow up to ₹50 Lakhs without submitting any collateral. Here is everything you need to know about MSME loans.

On Bajaj Markets, you can get an MSME loan at an affordable interest rate, starting at 14% p.a. In addition, nominal charges are levied as processing fees when you apply for a loan. Some of these charges are listed below:

Some common requirements you need to fulfil to be eligible for an MSME loan include:

• You should be an Indian citizen

• You should be either:

  • A self-employed professional like a chartered accountant, doctor, etc.

  • A self-employed non-professional such as a manufacturer, trader, etc.

• Your age should be between 21 and 60 years

• Your company should be a partnership, limited liability partnership, or a private limited company

• Your minimum business vintage should be 5 years, while for the current business, it should be 1 year

• Your annual income should be at least ₹1.5 Lakhs

Alongside this, you are usually asked to provide the following documents:

• Identity Proof: Any one of the following

  • PAN card

  • Aadhaar card

  • Passport

  • Driving licence

  • Voter ID
    

• Address Proof: Any one of the following

  • Aadhaar card

  • Passport

  • Utility bills

  • Lease agreement
    

• Income Proof: 

  • Bank statement for the previous 6 months

  • Balance sheet and P&L statement of the previous 2 years

  • ITR in addition to certified copies with income computation
    

• Business Proof: Any one of the following

  • Sole Proprietorship Declaration

  • Authenticated copy of the Partnership Deed 

  • Certified copy of Memorandum and Articles of Association

You can use an MSME/SME loan for several purposes like:

1. Inventory Management: Inventory management is a critical part of a small business, as its profits depend on the sale volumes. The MSME loan funds can help secure your inventory supply chain, manage seasonal dips, or purchase new product samples for business sales 

2. Purchasing Plants & Machinery: Since investment in plants and machinery requires heavy funding, applying for an MSME loan can help. These help you get the latest equipment without straining the company’s capital fund.

3. Working Capital Management: If a company cannot finance its day-to-day expenses, the production of wares and services will eventually suffer. To tackle this, consider applying for MSME loans. Use the funds to manage your business operations while repaying short-term debts and expenses that might arise soon.

4. Consolidate Your Business Debt: SME loans allow you to consolidate smaller debts and turn them into a single EMI. This helps reduce the strain caused by the monthly budget and helps align the debt repayment and the invoicing schedule.

5. Invest in Marketing: With an effective marketing strategy, a business can reinforce the trust and loyalty of its existing customers and acquire new customers in existing or new markets. However, marketing is a costly affair and requires investments in marketing campaigns. You can easily finance these campaigns for your business with the help of an MSME loan.

Check out some do’s and don’ts you must consider while applying for an MSME loan.

Reference of all T&C necessarily refers to the terms of the Partners as regards to pre-approved offers and loan processing time amongst other conditions.