MSME Loan
Fuel Your Business Ambitions
Empower your micro, small, or medium enterprise. Scale operations, purchase raw materials, upgrade technology, or manage cash flows with custom MSME business loans starting at 11.25% p.a.
- Rates from 11.25% p.a.
- Loans up to ₹5 Crore
- CGTMSE Collateral-Free
- Fast-Track Approvals
Check MSME Eligibility
Find eligible credit schemes for your firm.
Check Loan Eligibility in 2 Minutes
Compare rates from 30+ lenders without affecting your credit score
MSME Loan Interest Rates & Limits
Compare credit rates and loan terms across major national banks, private sector institutions, and business NBFCs.
| Lender Name | Interest Rate (p.a.) | Max Loan Limit | Loan Collateral |
|---|---|---|---|
| State Bank of India (SBI) | 9.65% - 13.50% | Up to ₹5 Crore | Required (Or CGTMSE cover) |
| SIDBI (Special Schemes) | 7.60% - 10.50% | Up to ₹3 Crore | Varies (Highly subsidized) |
| HDFC Bank | 11.50% - 16.50% | Up to ₹1 Crore (Unsecured) | Collateral-free options available |
| ICICI Bank | 11.75% - 17.00% | Up to ₹2 Crore (Unsecured) | Collateral-free options available |
| Bajaj Finserv | 12.49% - 21.00% | Up to ₹80 Lakhs (Unsecured) | No collateral required |
Common Types of MSME Loans
Select the right loan type tailored to your business operations, assets, and working capital cycles.
📦 Working Capital Loans
Short-term financing to handle day-to-day operational costs, inventory management, utility bills, and wages during seasonal cycles.
⚙️ Machinery & Equipment Finance
Term loans to fund purchasing or upgrading heavy equipment, factory setups, computer hardware, or heavy transport vehicles.
🚀 Business Expansion Loans
Medium to long-term funding to open new branch offices, launch new product lines, build warehouses, or acquire competitor firms.
🛡️ CGTMSE Collateral-Free Cover
Government-backed credit guarantee scheme enabling MSMEs to secure collateral-free business loans up to ₹5 Crore from banking partners.
Eligibility Criteria & Documents Required
Meet these simple benchmarks to process your small business loan application quickly.
Eligibility Criteria
- Business Vintage: Minimum 2 years of active operations.
- Annual Turnover: Over ₹12 Lakhs in audited sales.
- Credit Score: Promoter's CIBIL score of 700+; healthy CMR (Credit Monitoring Report) rating.
- Registration: Active GST registration and Udyam Registration (MSME registration certificate).
Documents Required
- Promoter KYC: PAN Card, Aadhaar Card, Passport, or Voter ID.
- Company Proof: Partnership deed, GST registration certificate, MOA/AOA.
- Financial Statements: Audited Balance sheet & P&L statements for last 2 financial years.
- Bank Statements: Primary business account bank statement for past 12 months.
Frequently Asked Questions
The debt-to-income (DTI) ratio is the percentage of your monthly income that goes toward paying off existing debts (EMIs). Lenders prefer a DTI ratio below 40% to 50%. A high DTI ratio suggests you might be over-leveraged, which increases risk and can lead to loan rejection even if you have a good credit score.
Lenders look at several key factors: 1) Your credit score and repayment history, 2) Monthly net income and stability of employment, 3) Your age (typically between 21 and 60/65 years), 4) Your debt-to-income ratio, and 5) The type of employer you work for (corporate employees, PSU employees, and government staff are often considered low-risk).
In addition to the interest rate, you should watch out for: 1) Processing fees (usually 0.5% to 3% of the loan amount), 2) Prepayment or foreclosure charges (fees for paying off the loan early), 3) Documentation or stamp duty charges, and 4) Late payment fees or bounce charges in case of missed payments.