MSME Loans
Empowering Micro, Small & Medium Enterprises with flexible financing solutions. Get collateral-free loans with competitive rates and quick approvals.
₹1L - ₹5Cr
Loan Amount
9% - 15%
Interest Rate
7-15 Days
Processing Time
What are MSME Loans?
MSME (Micro, Small & Medium Enterprise) loans are specialized financing solutions designed to support the growth and development of small businesses across India. These loans cater to the unique needs of enterprises that form the backbone of India's economy.
At LoanAssure, we understand that MSMEs require flexible, accessible, and affordable financing options. Our MSME loan offerings provide entrepreneurs with the capital they need to expand operations, purchase equipment, manage working capital, and achieve sustainable growth.
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Million MSMEs in India
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% of GDP Contribution
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Million Jobs Created
Benefits of MSME Loans with LoanAssure
Comprehensive advantages that make our MSME loan offerings the preferred choice for entrepreneurs
Collateral-Free Options
Access loans up to ₹2 crores without pledging any collateral through CGTMSE scheme and other unsecured loan products.
Competitive Interest Rates
Enjoy attractive interest rates starting from 9% per annum with flexible repayment terms tailored to your business cash flow.
Quick Processing
Fast-track approval process with minimal documentation. Get your loan approved and disbursed within 7-15 working days.
Minimal Documentation
Simplified paperwork with digital processing options. We help you prepare and submit all required documents efficiently.
Flexible Tenure
Choose repayment tenure from 1 to 7 years based on your business requirements and cash flow projections.
Expert Guidance
Dedicated relationship managers provide end-to-end support from application to disbursement and beyond.
Types of MSME Loans Available
Comprehensive range of MSME financing options to meet diverse business needs
MUDRA Loans
Micro Units Development & Refinance Agency
Government-backed loans for micro enterprises to promote entrepreneurship and self-employment across various sectors.
- No collateral required
- Interest rates: 8.5% - 12% p.a.
- Tenure: Up to 5 years
- Minimal processing fees
CGTMSE Loans
Credit Guarantee Fund Trust for MSEs
Collateral-free loans backed by government guarantee for micro and small enterprises across manufacturing and service sectors.
- Loan amount: Up to ₹2 crores
- Interest rates: 9% - 15% p.a.
- Tenure: Up to 7 years
- No third-party guarantee
Stand-up India
SC/ST & Women Entrepreneurs
Special scheme to promote entrepreneurship among SC/ST and women entrepreneurs for greenfield enterprises in manufacturing, services, or trading.
- Loan amount: ₹10 lakhs - ₹1 crore
- Interest rates: 9% - 14% p.a.
- Tenure: Up to 7 years
- Composite loan facility
PMEGP
Prime Minister's Employment Generation Programme
Credit-linked subsidy scheme for generating employment opportunities through establishment of micro enterprises in rural and urban areas.
- Subsidy: 15-35% of project cost
- Interest rates: 8% - 12% p.a.
- Tenure: Up to 7 years
- Employment generation focus
MSME Loan Eligibility Criteria
Check if your business qualifies for our MSME loan offerings
Applicant Eligibility
- Age: 21-65 years for individual applicants
- Citizenship: Indian citizen or NRI
- Experience: Relevant business or technical experience
- Credit Score: Minimum 650 (preferred 700+)
- Income: Stable income source or business cash flow
Business Eligibility
- Classification: Must qualify as MSME as per government norms
- Vintage: Minimum 1-2 years of operations (for existing businesses)
- Turnover: Minimum annual turnover as per loan scheme
- Profitability: Business should be profitable or break-even
- Registration: Proper business registration and licenses
MSME Classification Criteria
| Category | Investment in Plant & Machinery/Equipment | Annual Turnover |
|---|---|---|
| Micro Enterprise | Up to ₹1 crore | Up to ₹5 crores |
| Small Enterprise | Up to ₹10 crores | Up to ₹50 crores |
| Medium Enterprise | Up to ₹50 crores | Up to ₹250 crores |
Note: A business will be classified as per the higher of the two criteria (investment or turnover)
Documentation Required for MSME Loans
Comprehensive list of documents needed for smooth loan processing
Personal Documents
- PAN Card of applicant/partners/directors
- Aadhaar Card or Voter ID
- Passport size photographs
- Residence proof (utility bills/rent agreement)
- Educational qualifications (if required)
Business Documents
- Business registration certificate
- Partnership deed/MOA & AOA
- GST registration certificate
- Trade license/Shop establishment
- MSME/Udyog Aadhaar registration
- Business PAN card
Financial Documents
- Bank statements (12 months)
- ITR for last 2-3 years
- Audited financial statements
- GST returns (if applicable)
- Sales invoices and purchase bills
- Project report (for new ventures)
Document requirements may vary based on loan type and amount. Our experts will guide you through the specific requirements.
MSME Loan Application Process
Simple and streamlined process to get your MSME loan approved quickly
Initial Consultation
Free consultation to assess your loan requirements and eligibility
Document Collection
Gather and verify all required documents with our assistance
Lender Selection
Compare offers from multiple banks and choose the best option
Application Submission
Submit complete application to the selected lender
Verification
Bank conducts document verification and credit assessment
Approval & Disbursement
Loan approval and fund disbursement to your account
Processing Timeline
7-15 Days
Total Processing Time
2-3 Days
Document Verification
1-2 Days
Disbursement
Interest Rates & Charges
Transparent pricing with competitive rates across different MSME loan products
| Loan Type | Interest Rate (p.a.) | Processing Fee | Prepayment Charges |
|---|---|---|---|
| MUDRA Loans | 8.5% - 12% | Nil to 1% | Nil |
| CGTMSE Loans | 9% - 15% | 0.5% - 2% | Nil after 1 year |
| Stand-up India | 9% - 14% | 1% - 2% | 2% in first year |
| PMEGP | 8% - 12% | 0.5% - 1.5% | Nil |
| General MSME | 9% - 16% | 1% - 3% | 2-4% in first 2 years |
Interest rates are subject to change based on RBI guidelines and individual eligibility. Final rates will be determined by the lender.
Frequently Asked Questions
Common questions about MSME loans answered by our experts
- MUDRA Loans: Up to ₹10 lakhs
- CGTMSE Loans: Up to ₹2 crores (collateral-free)
- Stand-up India: ₹10 lakhs to ₹1 crore
- General MSME Loans: Up to ₹5 crores or more with collateral
- MUDRA Loans: Completely collateral-free up to ₹10 lakhs
- CGTMSE Scheme: Collateral-free loans up to ₹2 crores with government guarantee
- Stand-up India: Collateral-free for eligible borrowers
- New Businesses: MUDRA and PMEGP schemes support startups with viable business plans
- Existing Businesses: Minimum 1-2 years of operations for most schemes
- Stand-up India: Specifically for greenfield (new) projects
- Loan Amount: Smaller amounts process faster
- Documentation: Complete documents speed up the process
- Scheme Type: Government schemes may take slightly longer due to additional verifications
- Bank Processes: Different banks have varying processing times
Ready to Grow Your MSME Business?
Join thousands of successful entrepreneurs who have achieved their business goals with our MSME loan solutions. Get expert guidance and the best rates in the market.