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

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Loan EMI Calculator

Loan Amount is 30000

No. of Month is 30

Rate of Interest `{`ROI`}` is 10

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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

Frequently Ask Questions

What is SME Loan?

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.

Classification of SME Segment?

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.

Can I add a co-applicant?

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.

How do I repay my Project 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.

Can I prepay my loan?

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.

SME Loan

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