MSME Loan/SME Loan

MSME Loan Scheme 2020

Looking for a quick MSME loan in India to boost up your slow-moving business? We at Ziploan offer hassle-free MSME loan of up to 7.5 lakh to meet your financial requirements. You can get small business loans for MSME loan online in just 3 days* after submitting few documents.

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instant business loan

ZipLoan is the Lender of Choice for Small Businesses.

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Minimal Documentation

No balance sheet needed

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No Prepayment Charges

After first 6 EMIs

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Receive Funds Within 3 Days*

Straight into your account

What is MSME Loan?

MSME Full Form is a Micro, Small and Medium Enterprise (MSME) loan is a kind of business loan that financial institutions provide to individuals, SMEs, MSMEs, and Startups. MSME loan schemes are designed to meet businesses to their working capital requirements, increase cash flow, buy new types of machinery, etc.

Top Features of MSME/SME Loan:

  • MSME Finance up to Rs 7.5 lakh – We offer small business loans for MSME ranging from Rs. 1 to 7.5 lakhs. We have a flexible ticket size, so you can pick the amount that you require.
  • Loan in 3 Days* - Online submission procedure of the documents helps us your MSME loan process faster. We disburse the funds within three days* after getting your MSME loan documents.
  • Apply Online - To apply MSME loan scheme fast and comfortably, we have made the entire MSME loan application process online. We also offer same-day approvals with disbursals within three days after the documents are submitted and verified.
  • Best Interest Rates - Our MSME loan interest rates are the best in the industry. No manual intervention but the automated process makes our process and interest rates fair. The interest rates are offered on the basis of your business's repayment ability.
  • Flexible Repayment Tenure - Our repayment tenure starts from 12 months to 36 months. Therefore, you get enough time to repay the loan amount.
  • No Prepayment Charges - We offer MSME finance at no prepayment charges after you have paid the first 6 EMIs (excluding pre-EMI).

Benefits of MSME Loan Scheme from ZipLoan

The following are the benefits of availing of an MSME business loan from us:

Eligibility Criteria of MSME Loan

Ziploan's MSME loan eligibility criteria are simple to let more and more business individuals avail of the loan amount.

Documents Required for an MSME Business Loans

Following are the documents need to avail loan for MSME businesses:

 ProprietorshipPartnershipPvt. Ltd. / LLP / One Person Company
Bank statement (12 months)
Business registration proof
PAN Card
Aadhar Card
ITR of the previous two years

MSME Loans Fees & Interest Rates

Customized Interest RatesYes
Loan Tenureup to 36 months
Pre-closure chargesNil** after paid the first 6 EMIs
Eligibility CriteriaAnnual turnover more than Rs.10 lakh
Loan Amount₹ 1 Lakh – ₹ 7.5 Lakh

MSME / SME Loans EMI

Equated Monthly Instalments (EMIs) break down a loan into easily repayable financial units. The EMI option provided by Ziploan helps you repay the loan amount with an easy EMI repayment facility. You can repay your loan amount in 12 to 36 months.

How to Calculate MSME/SME Loan EMI?

Here is the formula to calculate MSME Loan EMI

EMI = P × r × (1 + r) n/ ((1 + r) n – 1)

Above:

P: Loan amount, r: interest rate, n: tenure in number of months

How to Apply for MSME Loan

Here are three steps process to MSME loan apply online from ZipLoan:

  1. Submit Application - Simply enter your personal, business, and financial info to receive an MSME / SME Loans offer.
  2. Upload Documents - Upload digital copies of your documents in a single-step process for verification.
  3. Get Sanctioned - Receive your MSME / SME Loans approval and disbursal within 3 working days*.

How to Use MSME/SME Loan 2020-21?

MSME loan scheme 2020-21 is a great way to fund your business when needed. Here is how you can utilize the fund of MSME/SME finance.

What to do and not to do when applying for an MSME loan online

There are some Do's and Don't's you should know when applying for MSME loan for new business. Considering them will improve your chances of getting loan approval and reduce the risk of rejection.

Do's

Don't's

Relief Package for MSMEs

COVID19 Relief and Atmanirbhar package for MSMEs announced on 13th May 2020

New Definition of MSMEs announced

Government MSME Loan Schemes for SMEs, MSMEs in India

To help small-scale businesses the government of India offers several loan schemes that can be used by SMEs to fund their operations, purchase new equipment, expand their business, and etc.

The small and Medium Enterprises (SME) sector, contributes around 40% to the total GDP of India. In other words, they generate multiple employment opportunities in India but often face fund challenges. 

Here are six government MSME schemes that SMEs can avail:

  1. MSME government business loan scheme – The Government of India launched this scheme as a working capital loan, and an MSME can get a loan sanctioned of Rs. 1 crore in just 59 minutes.
  2. Mudra business loan - The Mudra loan yojana offers an MSME loan without collateral. There are three sub-categories of this scheme – Sishu loan up to Rs. 50, 000, Kishor loan up to Rs. 5, 00, 000, and Tarun loan up to 10, 00, 000.
  3. CGTMSE - Credit Guarantee Funds Trust for Micro and Small Enterprise or CGTMSE is a Government of India's  MSME Loan scheme. Under this scheme, businesses can avail of MSME loans for new businesses as well as the existing ones.
  4. Udyogini - This scheme is launched to provide business loan for women entrepreneurs in India where they can avail funds up to Rs. 15,00,000. An eligible woman entrepreneur must be between the age of 18 years to 55 years.
  5. National Small Industries Corporation Subsidy –  The goal of this government scheme is to help MSMEs grow by offering services including finance, market, technology, and others across the country. They want more businesses to avail small business loans for MSMEs.
  6. PMEGP Loan Scheme - Prime Minister’s Employment Generation Programme or PMEGP is an integrated subsidy scheme linked with Prime Minister Rojgar Yojana. The scheme was launched in 2008 and aims to provide business opportunities for the unemployed youth and a loan for MSME.

Before you get MSME loan make sure you have all the MSME loan required documents that financial institutions and banks ask for sanction loans for MSME businesses.

MSME Business Loan Schemes by Banks in India

MSME ProductsDescription
Working Capital LoanBanks offer these types of loans to fulfill daily cash requirements. Working capital loans example are Cash Credit Loan, Bills Discounting Facility and Letter of Credit (LOC
Term LoanTerm Loan on other hand can be used for capital expansion, capital expenditure, or buying fixed assets. It can be secured and unsecured.

 

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Solving Real problems

Ram Yadav

I have been running my business for over twelve years but have not been able to undertake expansion activities. I applied to Ziploan and they cleared my loan application in a very short span of time.

Kanchan Lata

I approached Ziploan for an equipment finance loan. Their eligibility criterion was easy to fulfill because it required only 2 years ITR and 10 lacs of annual banking credit.

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