India's booming economy has deliberately paved the way for numerous SMEs and MSMEs to come into existence. Besides, it has become extremely easy to avail of SME/MSME loans to meet the requirements of your business's working capital.

An MSME loan is provided to MSMEs, startups, individuals, entrepreneurs, business owners, self-employed professionals, and other business entities. This credit facility is granted for business expansion, upgrading the company's infrastructure, purchasing raw materials, repairing factory machinery, etc.

.You can easily avail of SME/MSME loans at Piramal Finance to expand or set up your business. Please note that the MSME business loan interest rate will vary according to the applicant's profile.

What are the Features and Benefits of SME/MSME Loans at Piramal Finance?

You can experience plenty of benefits if you choose an MSME loan and apply online through Piramal Finance. Some of the key features of availing SME loans at Piramal Finance are:

Zero Collateral

Many financial institutions demand collateral against business loans. But the SME/MSME loans at Piramal Finance are unsecured. This means you won't need to pledge any collateral while availing of this loan.

Quick Approval

You can easily apply for an SME/MSME loan online through our website and get it approved at the earliest. This online procedure will not just save you time but also ensure that your request is processed quickly. The loan amount will be disbursed into your bank account within 24 hours of approval.

Flexible Loan Repayment Tenure

The loan repayment tenure must be comfortable only to ensure that you don't default on your EMIs. At Piramal Finance, you will enjoy a flexible repayment tenure on your MSME loan for new business.

Higher Loan

According to the planned expansion scale, the requisite funds for a particular business are likely to vary. So, we offer MSME loans for startup businesses with a higher loan limit of INR 20 lakhs.

What are the Eligibility Criteria for SME/MSME Loans?

The MSME loan eligibility criteria differ from one loan provider to another. However, you need to fulfill some of the MSME loan criteria to become eligible for availing of an MSME/SME loan. They include:

  • As an applicant for SME lending, you should be at least 21 years and at most 60 years of age.
  • Your business should have valid proof for filing IT returns for the previous year.
  • Your business should have been running successfully for the past three years.
  • You should not hold any past record of loan default either in your name or your business's name.
  • Your credit score should be at least 750 or more. However, Piramal Finance provides loans to people with low credit scores.

Eligible entities that can apply for an MSME business loan include:

  • Proprietorships
  • Partnership firms
  • Hindu Undivided Families (HUV)
  • Limited companies
  • Self-employed professionals
  • Women entrepreneurs
  • Limited liability partnerships
  • Private limited companies
  • Co-operative societies, etc

What are the Documents Required for MSME/SME Loans?

While you apply for an MSME/SME loan for your business, you need to submit the following documents:

Proof of Identity

You need to submit your Aadhaar Card, voter ID card, or passport as proof of your age and identity.

Proof of Residential Address

You can submit your telephone, electricity, or any other utility bill that will prove your residential address. Providing your Aadhaar card, passport, or driver's license will also suffice.

Proof of Business

You are required to provide a valid certificate proving your business's existence. You must also submit your previous financial year's income tax filings and your profit and loss statements for the past three years.

Please note that you must also provide two passport-size photographs and your duly completed application form.

What are the MSME/SME Loan Schemes Initiated by the Government of India?

The MSME loans initiated under the Ministry of MSME (MoMSME) are offered explicitly to MSMEs and SMEs by numerous banking and non-banking financial companies. Here, we have listed some of the popular MSME schemes offered by different financial institutions and initiated by the Government of India:

  • CLCSS: Credit Linked Capital Subsidy Scheme
  • CGTMSE: Credit Guarantee Fund Trust for Micro and Small Enterprises
  • MUDRA Yojana under PMMY
  • Credit Guarantee Scheme
  • PMEGP: The Prime Minister Employment Generation Programme
  • National Small Industries Corporation (NSIC) Subsidy
  • PSB Loans in 59 minutes under SIDBI
  • PMRY: Prime Minister’s Rozgar Yojana
  • Startup India
  • Standup India

How Should You Apply for an SME/MSME Loan at Piramal Finance?

If the MSME interest rate and the loan amount of Piramal Finance satisfy you, you can easily apply for it. You can register your business for an MSME loan online by following a few steps. They include:

Step 1:

Go to the Piramal Finance MSME Loan page. Read the features and eligibility criteria, and start the application process.

Step 2:

Click on Apply Now

Step 3:

Fill in the required Personal details such as Name, Contact Number, Birth Year, and MSME Loan Amount.

Step 4:

Choose the employment type 'Salaried' OR 'Self-Employed'

Step 5:

Add your monthly income

Step 6:

Select the State and branch (enter the branch by city) and Submit the MSME loan application form. 

Step 7:

Wait for a call from the official representative to move ahead with the processes.

After completing all the steps, like scanning, uploading the required documents, and paying the processing fees, wait until your MSME loan application is approved.

Things to Remember Before Applying for an MSME Loan

Here are a few things that you should remember before applying for MSME Loans:

  • Check your CIBIL score before applying for an MSME loan.
  • You must thoroughly assess your MSME loan requirements before applying for the loan.
  • Make sure that you've gathered all the requisite documents before proceeding with the MSME loan application procedure.

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Is it compulsory to have an MSME registration?
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Who is capable of availing of MSME loans?
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Can I apply for MSME loans online?
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Is it important to have a good credit score to apply for an MSME loan?
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Are machinery loans offered to MSMEs?
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Is it mandatory to have GST when applying for MSME loans?
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What is the rate of interest on MSME/SME loans?
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