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Business Loans for SME / MSME

Empower Your SME/MSME Company. Tailored Business Loans for Dynamic Growth and Success.

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Business Loan for SME / MSME

An SME loan refers to a loan that is likely to be given out to an SME or a company that has been recorded as a Small and Medium Enterprise. On the other hand, an MSME loan is taken by a company that operates under the Micro, Small, and Medium Enterprises Act. Both of these types of loans are provided by Grahaan Capital to those companies who are interested in purchasing some machinery and types of equipment or raw materials to start a new venture enlarge their business invest in fixed assets or meet their working capital needs.

Grahaan Capital provides collateral-free Business Loans for SMEs and MSMEs. Our SME / MSME loans come with lots of attractive features and benefits, such as a simple application process, flexible tenure, favorable interest rates, and quick loan processing.

Features and Benefits of SME / MSME Business Loan

  • Customized Loan Solutions: Tailored financing options to meet the specific needs of Small and Medium Enterprises (SMEs) and Micro, Small, and Medium Enterprises (MSMEs), addressing various business requirements such as working capital, expansion, and equipment purchase.
  • Competitive Interest Rates: Affordable interest rates designed to support the growth of SMEs and MSMEs, making borrowing more cost-effective and manageable for small businesses.
  • Flexible Repayment Terms: Repayment schedules are adaptable to the cash flow patterns of SMEs and MSMEs, ensuring that businesses can manage their finances comfortably without stress.
  • Collateral-Free Loans: Availability of unsecured loans, allowing SMEs and MSMEs to access funding without needing to pledge valuable assets as collateral, reducing the risk for business owners.
  • Quick Approval and Disbursement: Streamlined application and approval processes with fast disbursement of funds, enabling businesses to seize market opportunities and address urgent financial needs promptly.
  • Supportive Services: Access to additional services such as financial advisory, mentorship, and business development support, helping SMEs and MSMEs to make informed decisions and achieve sustainable growth.

Business Loan EMI Calculator

50K 1Cr
12 60
9.75 30%

Eligibility Criteria for SME / MSME Business Loan

Get immediate approval for a business loan up to Rs. 1 Core. You can apply for our business loan online, as long as you meet some basic criteria mentioned below. Meet the simple requirements for business loan eligibility and complete the necessary documentation to receive the funds you require in as little as 24 hours* after approval.

  • Age: Minimum 21 years at the time of loan application & Maximum 65 years at the time of loan maturity
  • Nationality: Indian citizens, should not have defaulted on any previous loan(s) with any lender
  • Eligible Entities: Individuals, Startups, MSMEs, Sole Proprietorships, Partnership Firms, Public and Private Limited Companies, Limited Liability Partnerships, retailers, traders, manufacturers, and other non-farm income-generating business entities engaged only in the services, trading, and manufacturing sectors
  • Business Vintage: Minimum 1 year or above and your business should not fall under any list of blacklisted businesses.
  • Business experience: Minimum 1 year, business location to remain same
  • Annual Turnover: Preferably 6 lakhs per annum. Shall be defined by the Bank/NBFC
  • Credit Score: Preferably 700 and above as having higher credit scores improves chances of loan approval
  • Additional Criteria: Applicant must own either a residence, office, shop, or godown

* Charitable organizations, NGOs, and trusts are not eligible for a business loan.

Note: The above-mentioned eligibility criteria are for indicative purposes only. Actual eligibility criteria defined by Banks/NBFCs shall vary as per their sole discretion and shall be defined at the time of loan application submission.

Documents required for SME / MSME Business Loan

Documents required for business loans to establish your business identity, income, loan repayment capacity, and place of business. Here are the few common set of documents that you will need to submit when applying for a business loan:

  • KYC documents of applicants, partners, and co-applicants: Passport/ PAN Card/ Voter’s ID/ Aadhaar Card/ Driving License/ Utility Bills (Recent Water or Electricity Bills)
  • Address Proof: Business Vintage and Address Proofs
  • Income Proof: Last 6 months’ bank statement and Last year’s ITR for existing enterprises
  • Proof of Business: Business registration certificate, GST filing, Gumastadhara, trade licence, drug licence, TIN, VAT registration, Company PAN card.
  • Specific to Business Type:  — Proprietorship: Proprietor’s PAN and Aadhar card copies.— Partnership: Partnership deed copy.— Pvt. Ltd./LLP/One Person Company: Specific documentation as required.
  • Any other document required by the lender *

Interest Rates & Charges of SME / MSME Business Loan

Although business loan rates and charges might differ significantly based on the credit history of the loan applicant and the business itself, the following table will provide you with a general indication of what to expect:

Particulars Charges
Business Loan Interest Rates 9.75% p.a onwards
Loan Amount ₹1 Lakh to ₹1 Core
Loan Processing Fees Minimum 2% plus applicable taxes
Lowest EMI per month Starting from ₹2,112* per Lakh for 60 months
Loan Tenure 12 - 60 months
Prepayment/Foreclosure Charges 0%* If paid from own sources & 4% If paid from other sources
Default Interest Minimum 3% per month
Repayment Instrument Dishonor Charges Upto Rs. 2500/ + GST (if applicable) per bounce
Stamp Duty At actuals (as per state)
* No Other Hidden Charges

Tips for Getting Business Loan for SME / MSME

  • Create a Detailed Business Plan: Develop a comprehensive business plan that outlines your business model, market analysis, financial projections, and how you will utilize the loan. This demonstrates to lenders that you have a clear strategy for growth and repayment.
  • Showcase Strong Financial Management: Maintain accurate and up-to-date financial records, including balance sheets, profit and loss statements, and cash flow statements. Strong financial management practices signal reliability and stability to lenders.
  • Build a Good Credit History: Ensure timely payments of existing debts and bills to maintain a healthy credit score. A good credit history increases your chances of loan approval and can qualify you for better terms.
  • Use Technology and Digital Tools: Implement and highlight the use of modern technology and digital tools in your business operations, such as accounting software, inventory management systems, and customer relationship management (CRM) systems. This shows lenders that your business is efficient, organized, and ready for scaling.
  • Highlight Business Stability and Growth: Demonstrate your business’s stability and growth potential by providing evidence of consistent revenue streams, increasing customer base, and positive market trends. Showing a history of steady growth can make lenders more confident in your ability to repay the loan.
  • Provide Collateral if Possible: Offering collateral can increase your loan approval chances and might get you better loan terms.
  • Network with Industry Peers: Join industry associations and networks to stay informed about lending opportunities, government schemes, and best practices for securing business loans. Networking can also provide referrals and endorsements that may strengthen your loan application.

Apply Business Loan Offer for SME / MSME in 2 minutes

Frequently Asked Questions (FAQs)

According to the definition laid down by the regulatory authorities, certain companies are classified as small or medium enterprises in the manufacturing and service sector. These industries are further subdivided based on the amount capital invested and the turnover they generate. For an enterprise to be classified as a small enterprise, an enterprise should have an investment not more than Rs. 10 crores and a turnover not more than Rs. 50 crores. A medium enterprise should have investments not more than Rs. 50 crores and a turnover not more than Rs. 250 crores.
The MSME full form is – Micro, Small and Medium Enterprises. MSME entities are set up under the Micro, Small & Medium Enterprises Development (MSMED) Act, 2006 and have contributed greatly to India’s economy and have been rightly considered as its backbone. MSME’s are engaged in the production, manufacturing, processing, or preservation of goods and commodities. They have resulted in the development of the backward and rural areas of the country, increasing exports, promoting industrialization as well as generating employment opportunities.
Grahaan Capital provides SME/MSME Loans with easy eligibility criteria and minimal documentation. All micro, small, and medium-sized enterprises with a business vintage of more than two years and an annual turnover of at least ₹6 Lakh can apply for our Business Loans for SMEs and MSMEs. For more details, please visit the Business Loan eligibility criteria section on our website.
While the interest rate for an SME/MSME loan varies across lenders, Grahaan Capital provides Business Loans for SMEs and MSMEs at competitive interest rates, starting from 16% per annum.
We levy a nominal processing fee of a minimum of 3% + taxes on the loan amount to counter the administrative charges and provide best-in-class services to our customers.
Not at all! Our SME/MSME Loans are collateral-free. It means that you are not required to pledge any security to avail funds for your business. Additionally, it helps us disburse your loan as quickly as possible.
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Professionals
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Pre-approved
Manufacturer
Traders