Products offered in MSME Business Loan

The highest loan amount available for SME/MSME loans varies depending on factors. At Muthoot Finance, MSME online loans can range from a few lakhs to several crores of rupees. The business may operate within either the Manufacturing Sector or the Service Sector.

Business Size in Manufacturing Sector - For Micro-level businesses, the threshold is set at exceeding 25 lakhs. Small-scale businesses are defined as those exceeding 5 crore, while Macro-level enterprises surpass 10 crore in revenue. Business Size in Service Sector - Micro-level businesses must exceed 10 lakhs in revenue. Small-scale enterprises surpass 2 crore, while Macro-level businesses exceed 5 crore in revenue.

SME/MSME business loans aim to support businesses in scaling operations, investing in infrastructure, purchasing equipment, and meeting working capital needs. SME/MSME loans are available to small and medium-sized enterprises, including both existing businesses and startups, across various sectors. Eligibility criteria typically include factors such as the business's annual turnover, years in operation, creditworthiness, and adherence to regulatory requirements. Additionally, lenders may consider the business's financial stability, repayment capacity, and potential for growth.

To apply for an SME loan, one requires the following documents: .

• Passport-size photographs of the applicants and co-applicants.
• Business address proof such as a rent agreement, property tax receipts or utility bills in the business’ name.
• Bank Statements of the last six months to analyse the financial transactions and cash flow of your business.
• Income Tax Returns document to verify tax compliance and income.
• Certificate of business establishment depending on the type of entity.
• KYC documents which may include an Aadhaar card, Passport, Voter’s ID card, PAN card etc.

The CIBIL score is one of the most important factors for determining MSME loan eligibility. The CIBIL score and credit history can vary, depending on various factors such as the lender, the type of business, the loan amount and the scheme that one is choosing. Lenders usually evaluate the CIBIL score based on one’s repayment history and existing debt obligations. It is important to remember that a higher CIBIL improves one’s creditworthiness and improves your chances of securing an SME loan.

Muthoot Finance offers the best SME loans for financing your various business needs. We provide a wide range of loan schemes to Micro, Small and Medium (MSME) enterprises. To ease the process further and make funding more accessible, you can even apply for an SME loan online on Muthoot Finance’s website or mobile application. With swift loan processing, higher loan amounts, and a variety of different loan schemes, Muthoot Finance is one of the best options for securing funding for your business projects.

SME loans or MSME loans are specifically designed to meet the requirements of small or medium-sized businesses, whereas business loans cater to the diverse needs of businesses of all sizes, from startups to large corporations.

SME business loans are tailored to support the growth of smaller enterprises, offering smaller loan amounts, lower interest rates, and more flexible repayment terms due to the lower turnover and limited assets of these businesses. In contrast, business loans provide financial support for enterprises of varying sizes, offering higher loan amounts and catering to a broader spectrum of financial needs.

SME loans generally offer lower interest rates compared to other business loans. However, to secure even lower interest rates, consider obtaining SME financing from Non-Banking Financial Companies (NBFCs) like Muthoot Finance. NBFCs often provide SME business loans at more competitive interest rates compared to traditional government banks.

Another option is to improve your business's creditworthiness by having a good credit history, solid financial records, and a well-designed business plan. This can help you qualify for lower interest rates, as lenders assess the risk profile of the borrower.