MSME Loan Scheme 2024: Check Features, Eligibility and Interest Rates 2024

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.

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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