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MSME Business Loans

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MSME business loans

The GOI enacted the MSMED Act 2006. As the name states, the definition of MSMEs consists of Micro, small, and medium-scale enterprises. This sector accounts for almost one-third of India’s economy and plays a significant role in driving growth. So, accelerating your MSME business needs simplified processes and easy access to business loans without collateral. That’s why we are here to assist in expediting growth by providing hassle-free access to business loans for MSMEs in India.

Key Features to Avail of MSME Business Loans

Funding amounts from Rs 25 Lacs to Rs 15 Cr

interest rate

Competitive Rate of Interest

start business

Potential for Scalability

Simple terms and Less Paperwork

Flexible Loan Repayment (Up to 60 Months)

Advantages of MSME Business Loan

  • Business owners get an unsecured loan for their MSME. It is a convenient type of funding for businesses looking to expand, reconstruct, or launch new ventures.
  • Lower interest rates give MSME loans a competitive edge.
  • Collateral-free loans are beneficial for MSMEs because they often lack assets to offer as security.
  • MSMEs use short-term funding to fulfil short-term needs, avoiding long-term commitments.
  • Some investors ask for equity in MSMEs in exchange for funding, but MSME loans allow business owners to retain control.

Here’s a Guide to MSME Loans for New Business – Advantages, Eligibility and Application Process.

MSME Business Loan Eligibility Criteria

  • The business should be across the service or manufacturing sector to avail of the Loans for MSMEs in India.
  • The investments in the service sector should not exceed Rs. 5 crores.
  • Age above 25 years.
  • The business should have been in operation for more than six months if the fund is borrowed for business expansion.
  • The business setup should not be in the blacklist categories.

Challenges Faced by MSMEs in India

Micro, Small, and Medium Enterprises (MSMEs) are the backbone of the Indian economy. They contribute to 45% of India’s total industrial employment and 50% of India’s total exports. MSME industries currently manufacture more than 6000 types of products. Therefore, when these industries grow, the country’s economy will also thrive.

Several financial institutions offer unsecured business loans to MSMEs to cover business-related expenses. The applicant must meet the MSME loan eligibility requirements. The Reserve Bank of India (RBI) and the Government of India define MSME loans as loans to businesses to help them in areas such as infrastructure, finance, and others.

There are certain government schemes under which certain financial institutions offer loans for MSMEs. For instance, CGTMSE, PMEGP, MUDRA Loan, RAMP, CBFTE, PMS and others.

Govt schemes for MSMEs in the Pharmaceutical Sector

The government of India launched 3 schemes to make the pharma industry Atma Nirbhar, additional resilient and future-ready. Those are as below –

  • PTUAS Scheme 
  • API-CF Scheme
  • PMPDS Scheme

Read more about the government schemes available for MSMEs in the Pharmaceutical Sector.

Few more schemes

1. RAMP scheme

RAMP is the World Bank-assisted GOI scheme. Technically, It stands for Raising and Accelerating MSME Performance. The scheme aims at

  • Improving access to market and credit
  • Strengthening institutions and governance at the Centre and State
  • Improving Centre-State linkages and partnerships
  • Addressing issues of delayed payments
  • Greening of MSMEs

2. CBFTE scheme

CBFTE is a scheme to help Indian MSMEs ensure that their products and services meet international quality standards so that they can reach their full potential in the global market. It will be beneficial for MSMEs as it will give them access to more opportunities and help them reach their potential in the global value chain.

3. PMS scheme

PMS (Procurement and Marketing Support) is an initiative by the government of India to help and support MSMEs, by promoting ways in for numerous marketing topics. MSME needs to know about the latest marketing developments and stay updated with trends.

MSME business loans at Terkar Capital

Terkar Capital offers easy access to MSME business loans in India, supporting this crucial sector that contributes significantly to the country’s economy. We offer MSME loans for new businesses, with a deep understanding of customers’ financial strengths and weaknesses, We provide personalized financial solutions, ensuring a smooth loan process.

How do we Execute?

Here’s the execution process to avail of an MSME business loan at Terkar Capital.

business loan execution process

What sets us apart?

1. Fast Turnaround Time

We cordially track the deadlines and make our quality tangible, while executing finance projects well ahead of time.

2. Confidentiality

We comply with the highest professional confidentiality standards. All client information is discussed in strict confidentiality.

3. Competitive ROI

We find you the right lenders with similar terms and the lowest rate of interest.

4. Hassle-free Processing

We create a stable ownership structure for financiers by establishing a secure transaction process.

5. High Level of Integrity

We are building our reputation through reliability, integrity, and honesty. We connect to our clients on personal grounds that include transparency and liability.