MSME Loan Scheme 2024:- To start and expand, Micro, Small, and Medium-Sized Enterprises (MSMEs) require finance. To give MSMEs credit, the Indian government has introduced numerous programs and taken several actions. MSMEs play a major role in our nation’s economic development. Credit availability is one of the main characteristics of MSMEs. MSMEs need finance or credit to launch or grow their businesses.
An MSME loan for a new company is perfect for managing the MSME and enhancing its financial standing by assisting with the purchase of cutting-edge machinery, equipment, stock, staff salaries, etc. MSMEs’ expansion and growth may also benefit from it.
Contents
MSME Loan Scheme 2024: Overview
| Name of the scheme | MSME Loan |
| Name of article | MSME Loan Scheme 2024 |
| Article Type | Government scheme |
| Who can apply? | All Indian citizens |
| Medium of application | Online/Offline |
| Age Range | Minimum 18 years |
| Official website | Click Here |
Also Read:- Parivarik Labh Yojana
MSME Loan Features
The following are the characteristics of an MSME loan:
- With an MSME loan, you may easily repay the loan amount over a variety of flexible periods.
- Within a few days, the MSME loan will be approved, and the funds will be credited to the MSME account online.
- Delays in business operations are avoided by the prompt payout and easy availability of MSME loans.
- MSME loans come with very little extra expenses, such as processing fees. There are no other unstated costs.
- The interest rate for MSME loans is incredibly cheap, starting at 8.75% p.a.
- Small enterprises can enhance their operations with its assistance.
- Collateral pledges are not necessary for an MSME loan.
- MSME loans promote the development of innovative technologies, the expansion of infrastructure, and the modernization of businesses nationwide, including Tier-2 and Tier-3 cities and towns.
MSME Loan Eligibility
- At least 750 must be the credit score.
- A business must make at least Rs. 2 lakhs in revenue annually and make at least Rs. 10 lakhs in turnover.
- Companies ought to be stable financially and have a solid history of repayment.
- There shouldn’t be any past loan defaults by businesses with financial institutions.
- The applicant’s age or an authorized signatory of a business must be at least 21 years old, and it cannot be greater than 65 years old.
- The candidate or designated signatory needs to have at least three years of work experience in the company and five years of minimum business experience.
- MSME loans are available to individuals, business owners, and MSMEs who have formed the following kinds of businesses in the manufacturing, trading, and services sectors:
- private limited businesses
- Companies with limited liability
- Individual businesses
- Partnership companies
- Partnerships with Limited Liability (LLPs)
MSME Loan Scheme 2024 Benefits and Advantage
Before applying for a loan under the PM Mudra Yojana, you should be aware of the primary advantages and characteristics of the program. Below, we’ll go into more depth regarding this scheme’s features and benefits.
- Any citizen of the nation may apply and launch a business under this program.
- The youth of the nation will receive assistance in launching their businesses under this program.
- This program has the potential to lower unemployment.
- You can also take out loans under this program to expand your current firm.
- You can apply for loans under this scheme for Rs 50,000 to Rs 10 lakh.
MSME Loan Interest Rate 2024
The MSME loan interest rates of different banks and NBFCs are provided below.
MSME Loan Interest Rates of Top Banks
| Bank Name | Interest Rate |
| Indian Bank | 8.75% p.a. onwards |
| Central Bank of India | At the discretion of the bank |
| Punjab and Sind Bank | 9.05% p.a. onwards |
| Punjab National Bank | 9.60% p.a. onwards |
| State Bank of India | 8.25% p.a. onwards |
| Canara Bank | At the discretion of the bank |
| UCO Bank | 8.70% p.a. onwards |
| Union Bank of India | At the discretion of the bank |
Also Read:- UP Free Tablet Smartphone Yojana Tablet Yojana 2023
Popular Banks Offering MSME Loans
Below are details of some of the popular Indian banks offering MSME loans:
| SBI SME Smart Score Loan | |
| Interest rate | 8.25% p.a. onwards |
| Processing fee | 0.40% of the loan amount |
| Loan amount | Up to Rs.50 lakh |
| Loan repayment tenure | Up to 7 years |
| HDFC Bank SME Business Loan | |
| Interest rate | 15.75% p.a. onwards |
| Processing fee | 0.99% of the loan amount |
| Loan amount | Up to Rs.40 lakh (Rs.50 lakh in select locations) |
| Loan repayment tenure | Up to 48 months |
MSME Loan Interest Rates of NBFCs
| NBFC | Interest Rate |
| Fullerton India | 17% p.a. to 21% p.a. |
| Lendingkart | 15% p.a. to 27% p.a. |
| Mahindra Finance | At the discretion of the lender |
| Muthoot Fincorp | At the discretion of the lender |
Popular NBFCs offering MSME Loans
Below are details of some of the popular NBFCs in India offering MSME loans:
| Fullerton MSME/SME Loan | |
| Interest rate | 17% p.a. to 21% p.a. |
| Processing fee | Up to 6.5% of the loan amount |
| Loan amount | Up to Rs.50 lakh |
| Loan repayment tenure | 12-60 months |
| Lendingkart MSME/SME Loan | |
| Interest rate | 15% p.a. to 27% p.a. |
| Processing fee | 2% to 3% of the loan amount |
| Loan amount | Rs.50,000 to Rs.1 crore |
| Loan repayment tenure | Up to 36 months |
MSME Loan Scheme 2024- Required Documents
- Aadhar card
- PAN card
- Bank passbook
- Basic address proof
- Income certificate
- Ration card
- Mobile number
- Passport size photo etc.
How to Apply For MSME Loan Scheme 2024
Applicants can take the following actions to apply for a loan under the MSME Loan Scheme 2024:
- You must first visit your preferred bank.
- You will need to obtain the application form after arriving here.
- This application must be thoroughly filled out.
- Please ensure that all necessary documents are attached and self-attested.
- Submission of the application form and all required documentation is required. Additionally, the application must be received.
Also Read: Pradhan Mantri Suraksha Bima Yojana
Conclusion
For MSMEs in India to grow and thrive, finance availability is essential. To meet this requirement and strengthen micro, small, and medium-sized businesses, the Indian government has launched several lending programs and initiatives. These programs serve a broad spectrum of companies, providing assistance at all phases of growth, from start-ups to well-established organizations. MSMEs can grow their businesses, become more competitive, and make a substantial economic contribution to the country by utilizing these programs.
FAQ’s
Q. What brand-new MSME program was introduced?
Ans- The PMS (Procurement and Marketing Support) Program. The program increases the marketability of goods and services in the MSME sector and supports innovative market access activities. About 9,500 MSEs benefited from the Ministry of MSME’s participation in 253 trade fairs and exhibitions held across the nation in 2023.
Q. For whom is the MSME loan 2024 available?
Ans- MSME loans are available to sole proprietorships, partnership firms, limited liability partnerships (LLPs), public limited corporations, and private limited companies.
Q. What is the MSME subsidy of 15 lakh?
Ans- The Credit Linked Capital Subsidy (CLCS), one of the scheme’s components, offers Micro and Small Enterprises (MSEs) a capital subsidy of up to Rs. 15 Lakh so they can acquire contemporary equipment.
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