What is a MSME Loan and who is eligible for It? MSME loan is a credit facility offered to MSMEs, individuals, startups, business owners, entrepreneurs, self-employed professionals and other business entities for business expansion purposes and to meet day-to-day business requirements. The maximum loan amount offered by Banks/NBFCs is up to Rs. 2 crores (Collateral-free loans) with a repayment tenure of up to 5 years, which may exceed as per the requirements.
MSME loan interest rates shall vary from lender to lender and shall depend on per applicant’s profile and business requirements. At Investkraft, we understand the vital role that MSMEs play in driving economic development and innovation. To empower these dynamic businesses, we proudly introduce our specialized MSME loan solutions. With our MSME loan offerings, we aim to be your financial partner on your journey towards success and sustainability. Explore our range of options, and let Investkraft be the catalyst for your business’s growth story.
India has become an emerging market that attracts various investors from different countries around the world. It owes a significant part of its growth to the MSME sector. Micro, small, and medium-scale businesses, or MSMEs, are known for contributing approximately 29% of the GDP of our nation. These enterprises frequently require financial aid in order to conduct their business operations seamlessly.
In such instances, MSME loans play an essential role. Technological advancements have made it easier for businesses to borrow capital via MSME loans. Additionally, various other MSME benefits are further discussed.
By applying for an MSME loan, companies can make sure that they can raise sufficient capital to meet their requirements. Some of the remarkable features of this loan that act as advantages for micro and small enterprises include:
If you’ve wanted to start a small-scale business by yourself with little to no idea of how to raise finances for it, we’ll walk you through the basics of MSME schemes and how to apply for each of them. Since banking has now been highly digitized, you can apply for the MSME loan online.
To secure an MSME (Micro, Small, and Medium Enterprises) loan through Investkraft for a new business venture, you should follow a systematic process. First, ensure that your business qualifies as an MSME as per the government’s criteria. Then, visit the Investkraft website and navigate to their loan application section. Provide all necessary documents such as your business plan, financial projections, KYC documents, and credit history. Investkraft will assess your application and conduct due diligence. It’s essential to have a well-thought-out business plan that outlines how you intend to use the funds and demonstrate your ability to repay the loan. Once approved, you can access the loan amount to fuel your new business growth.
MSME loans are majorly used for business expansion purposes, starting a new business, meeting working capital requirements, enhancing cash flow, purchasing raw materials, goods, or stock, buying or upgrading equipment/machinery, paying off rent/salary, hiring, and training staff, etc.
Investkraft is a financial institution that provides loans to Micro, Small, and Medium Enterprises (MSMEs) in India. Eligibility for an MSME loan with Investkraft typically depends on several factors.
First and foremost, a business must be registered as an MSME, which is determined based on its turnover and investment in plant and machinery or equipment. The specific criteria may vary, but generally, a micro-enterprise should have investments of up to Rs. 25 lakhs and a turnover of up to Rs. 5 crores.
Small enterprises may have investments up to Rs. 5 crores and a turnover of up to Rs. 75 crores, while medium-sized enterprises may have investments up to Rs. 10 crores and a turnover of up to Rs. 250 crores.
Additionally, Investkraft will assess the creditworthiness and financial stability of the business, including factors like the business’s financial statements, credit history, and repayment capacity. Meeting these criteria can make a business eligible for an MSME loan with Investkraft, which can be instrumental in supporting its growth and development. It’s important to note that loan eligibility criteria may evolve over time, so businesses should check with Investkraft for the most current requirements.
To apply for an MSME (Micro, Small, and Medium Enterprises) loan through Investkraft, you can follow a straightforward process. First, ensure that your business qualifies as an MSME based on the criteria set by the government. Then, visit the official Investkraft website or contact their nearest branch to obtain the loan application form. Fill in the application form with accurate and detailed information about your Business.
Regularly communicate with Investkraft’s customer support team for any assistance or clarifications needed throughout the loan tenure. Applying for an MSME loan through Investkraft involves thorough preparation, meeting eligibility criteria, and responsible financial management to support your business’s growth and development.
1. Is credit score important for MSMEs in getting MSME loans?
Ans. Yes, having a good credit score that is above 750 is always an added advantage when applying for MSME loans.
2. How can I get collateral-free MSME loans?
Ans. If you want to get collateral-free loans for MSMEs or startups, then you will have to apply for an unsecured business loan.
3. Is Machinery loan offered to MSMEs?
Ans. Yes, a machinery loan is a type of business loan offered by various Banks/NBFCs to MSMEs, entrepreneurs and existing businesses. This loan type is mainly considered under equipment finance.
4. Who is eligible for an MSME loan?
Ans. MSME loans can be availed by individuals, startups, self-employed professionals, entrepreneurs, business owners, Micro-Small and Medium Enterprises (MSMEs), sole proprietorships, private and public limited companies, partnership firms, Limited Liability Partnerships (LLPs), etc.
5. What documents are required for the MSME loan application?
Ans. Typical documents may include business registration documents, financial statements, KYC documents, and business plans. Investkraft will provide a detailed checklist upon inquiry.
MSME loans are the ideal choice for small business owners. They are customised financial arrangements with the right benefits packaged into them. These loans are versatile, and scalable and help the business owner get the most out of their borrowing operations. Investkraft’s MSME loan program has proven to be a valuable resource for small and medium-sized enterprises (SMEs) seeking financial support.
Overall, this initiative has been instrumental in fostering economic growth by providing accessible and tailored financial solutions to businesses that are the backbone of our economy. Through Investkraft’s MSME loans, countless entrepreneurs have been able to expand their operations, create jobs, and contribute to local and national development.