SME / MSME Loan

Get MSME Loan / SME Loan up to Rs. 75 Lakhs*

A loan offered to an SME or a company registered as a Small and Medium Enterprise is commonly referred to as an SME Loan. On the other hand, an MSME Loan is sought by a company registered under Micro, Small and Medium Enterprises. SMFG India Credit provides loans in both these categories to businesses who are looking to expand their operations by purchasing machinery, equipment and raw material, to invest in fixed assets or even to meet their requirements for working capital.

Based on the loan application, SMFG India Credit can provide a loan of up to Rs. 75 Lakhs* to both SMEs and MSMEs without seeking any collateral at competitive interest rates. Our loan solutions are designed to be flexible to meet the needs of our varied client base.

SME / MSME Loan Interest Rates

SME Loan Interest Rate:

Depending on various factors such as location, net income, business stability,  existing monthly obligations, etc., the SME loan interest rate can vary. If the borrower owns a business and is a self-employed individual, SMFG India Credit offers personal loans for self-employed at affordable interest rates. 

MSME Loan Interest Rate:

The MSME loan interest rate is minimal and based on a number of parameters like nature of business, industry type, number of years in existence, financials, and so on.

Eligibility Criteria for SME / MSME Loan

You can determine your SME and MSME loan eligibility on the SMFG India Credit website. Common criteria include:

• Age Criteria: Minimum 22 years at the time of application and Maximum 65 years of loan maturity
• In case of Individuals: Individuals who have been engaged in the current business for at least three years with a total of five years of business experience.
• Company Type: Self-employed individuals, proprietors, private limited companies, and partnership firms working in manufacturing, trading, or services.
• Business Turnover: At least Rs. 10 lakhs per year
• Business Vintage: Minimum 2 years in profit
• Business with a Minimal Annual Income (ITR) of Rs. 2 lakhs per year

You can also calculate your loan eligibility by using our business loan eligibility calculator.

Documents Required for MSME / SME Loan

Here is a list of documents required for an MSME loan and an SME loan from SMFG India Credit:

• A photograph that is not older than 6 months    
• Proof of Identity - PAN card for the business as well as the applicant will have to be provided
• Valid address proof of the business (such as business registration certificate) as well as the applicant (Aadhaar card, passport copy, etc)  
• Bank and income statements for the last 6 months along with Form 16
• Income Tax or GST Returns for the last 2 years with an audited income summary
• Your financial statements with a declaration of cash profits for the last 2 years along with annual turnover demonstrating a positive trend in the current financial year
• Proof of Business existence (like Certificate of Incorporation, etc.)

To make the lending process effortless, we strive to provide loans with minimal documentation.

How to Apply for SME / MSME Loan?

At SMFG India Credit, you can apply for an SME and MSME loan by visiting your nearest branch office or through the convenience of our website.

If you wish to apply for the loan online, follow these easy steps:

Fill in Your Application: Your application form can be filled and submitted online. Make sure that you’ve submitted all relevant personal, professional and financial details accurately, to the best of your knowledge. 

When your application is received by SMFG India Credit, a representative from the appropriate department will get in touch with you within a designated timeline. All possible loan options will be discussed at this stage, along with best interest rates, EMIs and loan tenures. 
    
Document Upload: Once your pre-assessment and eligibility by SMFG India Credit have been confirmed, you can proceed with the document upload process. This can be done completely online. You can also request doorstep pickup service at a convenient time, and our representative will collect the documents from you.

After the document submission is complete, the relevant team at SMFG India Credit will review them for verification. 

Loan Disbursal: Upon successful verification, once SMFG India Credit approves your loan request, we will share the loan agreement with you. This outlines all the terms and conditions of the loan along with interest rates and loan repayment tenure. Once you sign and the document is received by SMFG India Credit, the funds are generally disbursed within 72 hours* to your bank account after loan approval.

Why opt for SMFG India Credit’s SME Loans?

Transparent and Fast-tracked Loan Disbursement Procedures

We try to keep our SME loan procedures transparent so that customers can make an informed decision. We provide easy online access to various tools to check your eligibility and loan application requirements such as our business loan eligibility calculator, business loan EMI calculator, and documentation list. For SME funding requirements up to 75 Lakhs*, we offer affordable and competitive interest rates and aim for easy and fast-tracked disbursements of collateral-free loans.

Flexibility in Loan Repayment

We offer ample flexibility to our customers with respect to the repayment schedule. You may schedule your loan repayment with us, anywhere between 12 – 48 months, based on your receivables. Similarly, if you want an early settlement of your loan, we offer fore-closure options without any extra charges*.

Online SME Loan Processing

Applying for SME loans at SMFG India Credit has been made quicker through the online application procedures. Based on your eligibility, desired tenure and loan amount with the relevant documentation, we provide you with a customized offer with the best available interest rates and terms

*Subject to terms and conditions

MSME Classification

How to Calculate MSME / SME Loans EMI?

To calculate your MSME/SME loan EMI manually, use this formula: 

EMI = P x r x (1+r)n/ (1 + r) n-1 

Don’t worry, you don't have to calculate this entire equation. Just enter your loan amount (P), interest rate (r), and loan term (n) into SMFG India Credit’s business loan EMI calculator. Once you have opened the calculator, you can adjust the values to find the optimal combination that aligns with your budget. This user-friendly tool aids you in exploring various scenarios and empowers you to make informed decisions regarding your SME loan.

Factors Affecting MSME Loan Interest Rates

The interest rates on your MSME loan are influenced by specific factors:

1. Type of Business: Lenders assess the risk associated with your business type or industry. If it's perceived as risky, your MSME loan interest rates may be higher.
2. Business Age: A longer operational history indicates stability, potentially securing a better interest rate. Established businesses are often offered more favorable rates than newer ventures.

When applying for an MSME loan, consider these factors to understand your interest rates.

Features & Benefits of SME/ MSME Loan

Getting an MSME loan has several benefits, some of which are: 

1. Easy Capital Access: With MSME loans, you can get access to capital effortlessly and cover business expenses by securing a business loan, saving personal finances from the burden.
2. Budget-Friendly Interest Rates: MSME loans enjoy attractive interest rates that are crucial for economic growth, minimizing financial burdens, and maximizing funds for business needs.
3. Short-term capital management: With MSME loans, you can manage short-term capital needs seamlessly, avoid long-term commitments, enhance cash flow, and promote effective financial management.

Things to Remember Before Applying for an MSME Loan

You should remember the following things before applying for an MSME loan: 

1. Credit Check Alert: Check your CIBIL score upfront. This critical step shapes your loan approval prospects. A good credit score not only increases your chances of getting a loan approved but also helps you negotiate for better interest rates.
2. Strategic Assessment: Thoroughly evaluate your MSME loan needs. A clear understanding ensures precise financial support. Assess your financial requirements, your repayment capacity, and your business prospects to determine the loan amount and the repayment tenure that suits you the best.
3. Prepare your documents: Gather all necessary documents meticulously. Anticipate your lender's needs, simplifying the MSME loan application process. Make sure to provide all required documents to avoid any delays or rejection of your loan application.

By following these tips, you can ensure a smooth MSME loan application process and increase your chances of getting your loan approved.

Smart ways to use MSME / SME loans

Once you have applied for an MSME loan or SME loan, it is approved. You can use the money to do various things for your business. Here are some smart ways to use your MSME loan so that you can take the maximum benefit out of it:

Inventory Management

Make the most of your MSME loan by using it wisely for inventory management. This will help you to safeguard your supply chain, address seasonal dips, replenish stock, and invest in new product samples. To ensure that your business thrives, you should strategically use the funds to optimize sales volume. The key to securing your small firm's success is through smart inventory management.

Purchasing Plant & Machinery

Get the most out of your unsecured MSME loan by investing in plants and machinery wisely. You can empower your small business to expand operations without using up your cash reserves. Invest strategically, enhance productivity, and boost your growth with essential equipment. This will ensure a solid foundation for long-term success.

Working Capital Management

If you're a small or medium-sized business owner, you can optimize your MSME loan to manage your working capital more efficiently. By securing funds for your weekly and monthly expenses, you can ensure independence from buyers and suppliers and navigate cash flow challenges with ease.

Consolidate your business debt

You can optimize your MSME loan by consolidating your business debt. By doing this, you can unify all your smaller payments into a single EMI, which will ease your monthly budget constraints. Aligning your debt payback with invoicing schedules will help you manage your finances seamlessly. By consolidating your debt strategically, you can enhance your financial flexibility, streamline your business's fiscal health, and achieve better outcomes.

Invest in Marketing

To maximize the benefits of your MSME loan, consider investing in marketing strategies. By implementing effective marketing tactics, you can not only strengthen customer loyalty and trust but also expand your business reach in both existing and new markets. To ensure the best results, allocating your funds wisely towards a comprehensive online and offline marketing plan is important.

What to do & Not to do when Applying for an MSME Loan Online?

Here is a list of things you should do when applying for MSME loans:

• Understand Your Business Needs: Clearly define the purpose of the loan, whether it's for expansion, inventory, machinery, or working capital.
• Evaluate Your Eligibility: Use online calculators to focus on lenders likely to approve your application, avoiding wasted time on unsuccessful submissions.
• Prepare a Solid Business Plan: Present a comprehensive plan detailing loan usage, repayment strategy, and growth prospects, making your application more appealing.

Here is a list of things you should not do when applying for MSME loans:

• Apply to Multiple Lenders Simultaneously: Avoid negatively impacting your credit score with multiple hard inquiries and strategically choose a few lenders for applications.
• False Financial Information: Maintain honesty in providing financial details. Any discrepancies can lead to rejection and legal consequences.
• Rush the Application Process: Take the time to fill out forms accurately. Rushing may result in incomplete applications, causing delays or rejections.

*Subject to terms and conditions

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