SME Loan Overview

SME Loan is the funding of small and medium-sized enterprises, and represents a major function of the general business finance market – in which capital for different types of firms are supplied, acquired, and costed or priced.

We understand how important investment is to ensure that businesses reach their full potential. With this in mind, SME Loans to help you to give your business the impetus it needs. Whether you require a business loan, a loan to expand capital, purchase equipment or machinery, you have the freedom to choose the most suitable loan for SME business that meets your financial needs. With flexible tenure, processes and minimum documentation, the SME Loan is to provide the momentum for growing your business.

SME Loan - Eligibility

The following entities are eligible to avail SME loan:

  • Sole proprietorship firms
  • Partnership firms
  • Private limited companies
  • Public limited companies
  • Manufacturing, trading and service units
  • The firms must have made profits in the last two years
  • The firms must be defined under MSMED Act and by Reserve Bank of India.

Eligibility Calculator

Check Your eligibility for loans.

%

How much loan you are eligible for?

Loan EMI Calculator

Loan Amount is 30000
No. of Month is 30
Rate of Interest `{`ROI`}` is 10
Monthly EMI

Total Interest

Payable Amount

Interest Percentage

SME Loan Documents

Identity Proof
  • PAN Card (mandatory) and any one of the below documents
  • Voter Card
  • Aadhar Card
  • Valid Passport
  • Driving License
  • Photo Identity card issued by Govt. body
Address Proof  – Any one of the below documents:
  • Any one of the below documents:
  • Voter Card
  • Aadhar Card
  • Valid Passport
  • Latest Utility bill
  • Rent agreement on stamp Paper
  • Bank Statements reflecting address of borrowers of any commercial nationalized bank
  • Life Insurance Policy
  • Residence address Certificate /letter by employer on company letterhead
  • Municipal or property tax receipt
  • Post office saving bank account statement
Address Proof for Business Entities – Any one of the below documents:
  • Shops & Establishment Certificate
  • Trade License Certificate
  • SSI Registration Certificate
  • PAN Card/Sales Tax/ VAT Registration Certificate
  • Partnership Deed (for firms) / Memorandum of Association (MOA) for companies
  • Export-Import Code Certificate/Factory Registration Certificate
  • Professional qualification Certificate and Degree Certificate for Professionals
  • SEBI Registration Certificate
    Registration No issued by ROC
Proof of Income – (All the documents given below):
  • Income Tax Returns along with computation for last 3 financials years
  • Balance Sheet and Profit & Loss account along with all annexures (duly CA certified and audited if applicable)
  • Last six months current account statement of the business entity and saving account statement of individual
Other Documents – All the documents given below:
  • Documents related to running loans along with 6 months repayment bank statements
  • Latest List of share holding pattern (duly CA/CS certified)
  • MOA (for private Limited companies)
  • Partnership deed (for partnership firms)
  • Bio-data and net worth statement of promoters, directors or guarantors
  • Site map of the land and the building plan
  • Estimate of the building by the architect
  • Quotations from machine suppliers for the plant and machinery
  • SSI registration certificate
  • NOC from pollution department
  • Power sanctioned and installed
  • Detailed project report
  • Details of technical personnel’s and key managers
  • Manufacturing process and its flow chart
  • Sale or lease deed copy of collateral securities
  • List of plant and machinery
  • Collaboration agreement, if required
  • Agreement with technical consultants, if any

Frequently Ask Questions

Small and medium enterprises are critical for the country’s economic and social development. SME is the biggest employment provider next to agriculture. The SME plays a major role in creating jobs and generating income for the low income group. SME fosters economic growth, social stability and contributes to the development of the private sector.

Access to financial services is vital for the SME sector to survive in any economy. SME Loan is offered to fund small and medium sized enterprises. There are various banks in India that work hard to provide SME finance to the small and medium enterprises.

Micro Enterprises
If it is a manufacturing enterprise, it will have up to Rs.25 lakh invested in plants and machineries. If it is a service sector enterprise, then up to Rs.10 lakh will be invested in equipment.

Small Enterprises
If it is a manufacturing enterprise, it will have above Rs.25 lakh and up to Rs.500 lakh invested in plants and machineries. If it is a service sector enterprise, then above Rs.10 lakh and up to Rs.200 lakh will be invested in equipment.

Medium Enterprises
If it is a manufacturing enterprise, it will have above Rs.500 lakh and up to Rs.1,000 lakh invested in plants and machineries. If it is a service sector enterprise, then above Rs.200 lakh and up to Rs.500 lakh will be invested in equipment.

Yes, a co-applicant can be added in order to get a better credit score and avail of a larger loan amount. It also help you to increase the loan amount you are eligible for. The income of the co-applicant also features in your valuation and helps in increasing your chances of getting a personal loan.

You have the flexibility of opting for Equated Instalment, Bullet Repayment or Ballooning Repayment (depending on the requirements of your business). PDCs, ECS mandate or Electronic Transfers are all accepted means of payment.

Yes,  prepayment of loans can be done after 6 months of loan payments.

Apply for SME Loan

You can apply for a SME Loan online, All you need to do is provide your details below application form.