Multiple banks. Different interest rates. Call it a "conflict of interest".
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    MSME (Micro Small and Medium Enterprises) Loan

    We found 32 MSME (Micro Small and Medium Enterprises) Loan

    Bank Name
    Interest Rate Range
    Processing Fee Range
    Loan Amount
    Tenure Range
    10.99% - 15.99% Fixed
    1% to 2.5%
    30L Max
    1-5 Years
    Response Time Within 30 minutes
    Rs.1000 Amazon voucher free Ad
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    Customer Reviews
    10.99% - 14.49% Fixed
    0
    30L Max
    1-5 years
    Response Time Within 30 minutes
    Rs.1000 Amazon voucher free Ad
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    Fees & Charges
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    Customer Reviews
    12% - 18% Fixed
    Up to 1.5% One time fee
    15L Max
    1-5 years
    Response Time Within 30 minutes
    Rs.1000 Amazon voucher free Ad INSTANT DECISION
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    Customer Reviews
    11.99% - 19.50% Fixed
    0 One time fee
    20L Max
    1-6 Years
    Response Time Within 30 minutes
    Rs.1000 Amazon voucher free Paperless approval option available
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    Customer Reviews
    13.99% - 16.99% Fixed
    1% - 2% One time fee
    20L Max
    1-5 years
    Response Time Within 30 minutes
    Rs.1000 Amazon voucher free Paperless Approval Option Available
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    Perks
    Fees & Charges
    Good to Know
    Eligibility Criteria
    11.59% - 18.49% Fixed
    2.25% (min. ₹1149) One time fee
    20L Max
    1-5 Years
    Response Time Within 30 minutes
    Rs.1000 Amazon voucher free Paperless approval option available
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    Fees & Charges
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    Eligibility Criteria
    Customer Reviews
    10.85% - 11.85% Floating
    0.5% One time fee
    50 K - 10 L
    1-5 Years
    Response Time Within 30 minutes
    Guarantor Required Paperless approval option available
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    Eligibility Criteria
    10.99% - 19.8% Fixed
    Up to 2.5% One time fee
    25L Max
    1-5 years
    Response Time Within 30 minutes
    Rs.1000 Amazon voucher free Paperless approval option available
    What you'll love
    Documents
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    Fees & Charges
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    Customer Reviews
    11.99% - 19% Fixed
    Up to ₹3000 One time fee
    25L Max
    1-5 years
    Response Time Within 30 minutes
    Rs.1000 Amazon voucher free Paperless approval option available
    What you'll love
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    Perks
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    Good to Know
    Eligibility Criteria
    Customer Reviews
    17.25% - 37% Fixed
    1.5% to 6.0% One time fee
    15L Max
    1-4 Years
    Response Time Within 30 minutes
    Rs.1000 Amazon voucher free Paperless approval option available
    What you'll love
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    Perks
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    Fees & Charges
    Good to Know
    Eligibility Criteria
    11.49% - 20.15% Fixed
    Up to 2%
    15L Max
    1-5 years
    Response Time Within 30 minutes
    Rs.1000 Amazon voucher free
    What you'll love
    Documents
    Perks
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    Fees & Charges
    Good to Know
    Eligibility Criteria
    Customer Reviews
    11.5% - 13.25% Fixed
    0 One time fee
    30L Max
    1-5 Years
    Response Time Within 30 minutes
    Rs.1000 Amazon voucher free
    What you'll love
    Documents
    Perks
    Fees & Charges
    Good to Know
    Eligibility Criteria

    MSME (Micro Small and Medium Enterprises) Loan is Rated as "Great!" by 73978 Users

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    Personal Loan BYTES FROM OUR KITCHEN

    What is MSME Loan?

    Government of India enacted the Micro, Small and Medium Enterprises Development Act, 2006 which defines Micro, Small and Medium Enterprises as follows:

    Enterprises that manufacture or produce or process or preserve goods

    • Micro enterprise: Where an enterprise investment in plant and machinery does not exceed Rs.25 lakhs.
    • Small enterprise: Where the investment in plant and machinery is more than Rs.25 lakh, but does not exceed Rs.5 crore.
    • Medium enterprise: Where the investment in plant and machinery is more than Rs.5 crore but does not exceed Rs.10 crore.

    Enterprises that provide service and whose investment in equipment, land or building is not directly related to the service that it renders

    • Micro enterprise: Where an enterprise investment in equipment does not exceed Rs.10 lakhs.
    • Small enterprise: Where the investment in equipment is more than Rs.10 lakh, but does not exceed Rs.2 crore.
    • Medium enterprise: Where the investment in equipment is more than Rs.2 crore but does not exceed Rs.5 crore.

    MSME (Micro Small and Medium Enterprises) Loan Scheme

    Perfect Personal Loan Deals for you

    Credit Guarantee Fund Trust for Micro and Small Enterprises was set up by Ministry of MSME, Government of India and SIDBI. The main aim was to facilitate flow of credit to MSME sector without the need for collateral or any third party guarantee. The objective of the scheme is to give importance to the project viability and secure the credit facility on the asset that is being financed.

    The Guarantee Trust will make good the loss if the borrower fails to discharge his liability. Up to 85% of the outstanding amount that is defaulted and the loss incurred by the lender will be covered by the Guarantee Trust. Credit Guarantee Fund Trust for Micro and Small Enterprises will cover for credit facilities up to Rs.1,00,00,000 that the lender has funded without any collateral or third party guarantee. To avail the guarantee cover, Credit Guarantee Fund Trust for Micro and Small Enterprises charges an annual service fee. This fee is borne by the borrower.

    The fee that is payable to the Trust is one-time guarantee fee of 1.5% and annual service fee is 0.75% on credit facilities sanctioned. For loans up to Rs.5 lakh, the one-time guarantee fee is 1% and annual service fee is 0.5%. For loans in the North-east Area, the one-time guarantee fee is set at 0.75%.

    MSME Loan Eligibility criteria

    The MSME Loan is offered to the priority sector. The priority sector impacts a large section of the population, the weaker sections and sectors that are employment intensive such as agriculture, education, housing, export credit, micro and small enterprises and others as expressed by the government.

    MSME Loan Limit and Interest rate

    Certain targets are set for banks’ lending to the Micro and Small Enterprises. The banks’ have to achieve a 20% growth in credit to micro and small enterprises and 10% annual growth in the number of micro enterprises accounts and 60% of total lending to Micro and Small Enterprises sector. The banks have to follow the following:

    • 40% of the total advances must go to micro and small enterprises involved in manufacturing having investment in plant and machinery up to Rs.10 lakh and for service enterprises having investment in equipment up to Rs.4 lakh.
    • 20% of the total advance to micro and small enterprises should go to manufacturing enterprises that have above Rs.10 lakh till Rs.25 lakh investment in the plant and machinery and for service enterprises that have investments in equipment above Rs.4 lakh up to Rs.10 lakh.
    • To simplify, 60% of the advances must go to micro enterprises.

    The banks must sanction the loan after careful appraisal of genuine working capital requirement of the borrower and considering the business cycle and short term credit requirement.

    Small Scale Industry units’ working capital requirement is minimum 20% of their estimated turnover up to Rs.5 crore.

    The rate of interest have been deregulated by the Reserve Bank of India and it is governed by the bank’s lending policy.

    Security

    Banks are instructed not to accept collateral in the case the loan amount is up to Rs.10 lakh. If the track record of the borrower is good, the limit may be increased loans up to Rs.25 lakh.

    Other services offered to MSE Entrepreneurs

    Apart from offering loans to MSE Entrepreneurs, the banks will also provide the following:

    • Rural Self-Employment Training Institutes:
    • Here short duration skill upgradation programmes are conducted to help the existing entrepreneurs to keep up with the changing global market.

    • Financial literacy and consultancy support:
    • Through Financial Literacy Centres, banks provide assistance to MSE entrepreneurs with financial, operational skills that includes accounting, finance, business planning etc.

    Restructuring of Sick Units

    A Micro or Small Enterprise is said to be sick if the any of the borrowal account of the enterprise remains NPA for 3 months or more or if there is erosion in the net worth due to accumulated losses to the extent of 50% of its net worth.

    The symptoms of sickness are as follows:

    • Lack of healthy movement of stocks and rising level on inventory.
    • Inability of the party to promptly honour the cheques.
    • Delayed submission of stock statements.
    • Unhealthy fluctuations in CC account.
    • Default in paying the interest charged on the borrower’s account.
    • Frequent request to grant excess limit without corresponding increase in sale.
    • Capacity utilization is low.
    • Current ratio is poor.

    If the units are deemed sick, then they must be restructured with proactive approach to avoid further deterioration. Service enterprises are rehabilitated through debt restructuring mechanism. Service enterprises that need concessions are restructures and relief measures are offered.

    MSME Loan Branches

    Public sectors banks have been directed to open at least one specialized MSME branch in each district. The banks can categorise the general branch that has 60% or more advances to MSME sector as a specialized MSME branch.

    The branch must be easily accessible by the entrepreneurs and it must equip personnel having requisite expertise. Those branches must focus on rendering service to the MSME sector and it can occasionally render other services to other sectors and borrowers.

    There are 2032 specialised MSME branches as on March, 2013. List of Banks that have MSME care centres:

    1. Allahabad Bank
    2. Bank of Baroda
    3. Oriental Bank of Commerce
    4. Andhra Bank
    5. State Bank of Bikaner and Jaipur
    6. State Bank of Hyderabad
    7. Bank of India
    8. Bank of Maharashtra
    9. State Bank of Travancore
    10. Canara Bank
    11. Dena Bank
    12. Indian Bank
    13. Indian Overseas Bank
    14. Punjab and Sind Bank
    15. Punjab National Bank
    16. Syndicate Bank
    17. UCO Bank
    18. Union Bank of India
    19. United Bank of India
    20. Vijaya Bank
    21. State Bank of Mysore
    22. Corporation Bank
    23. IDBI Bank
    24. State Bank of Patiala
    25. State Bank of India
    26. Central Bank of India
    27. State Bank of Indore

    MSME Loan Application

    The MSME Loan application requires you to fill in the following details:

    • Application date.
    • Name of the enterprise.
    • Registered office address.
    • Address of the factory or shop.
    • If the enterprise belongs to SC/ ST/ OBC/ Minority community
    • Telephone number.
    • E-mail address.
    • Mobile number.
    • PAN Card number.
    • Constitution (proprietorship, partnership firm, private limited company, limited company, cooperative society).
    • Date of establishment
    • State where the business is located.
    • Branch where the business is located.
    • Name of proprietors or partners or directors along with their age, academic qualification, address, telephone number and experience.
    • Existing activity.
    • Name of associate concerns and nature of association.
    • Mention the existing credit facilities, if any.
    • List out the proposed credit facilities.
    • If it is a Term Loan requirement, then the details of the machinery must be given. It should contain the details of type of machine, purpose of the machine, whether it is imported, name of supplier, cost of the machine, contribution made by the promoter and the loan required.
    • Project cost detail that includes the land development, construction of building, purchase of plant and machinery, purchase of vehicles, purchase of other assets, contingencies, interest during holiday period and working capital margin.
    • Project means of finance, that must include owner’s contribution, unsecured loan, subsidy and term loan.
    • Details of the collateral offered if any and detail of third party guarantee, if any.
    • Statutory obligations status must be mentioned. Statutory obligations are registration under Shops and Establishment Act, registration under SSI (Provisional and final), Drug license, latest Sales Tax Return filed, latest Income Tax Return files and any other statutory dues remaining outstanding.
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  • MSME (Micro Small and Medium Enterprises) Loan Reviews

    • HDFC Bank Personal Loan
      "Need to improve in services"
      0.5 1.0/5 "Really Bad"
      My personal loan is from HDFC Bank and the services has not been up to the mark. They need to know how to handle a customer and how to communicate as well. The team has to be more professional. The interest rate and charges is not a concern but the services is not satisfactory.
      Was this review helpful? 0
      , bangalore
      Reviewed on May 25, 2017
    • Bank Bazaar Customer Support
      "One stop solution for the financial products"
      0.5 4.0/5 "Great!"
      If any body is in need of any kind of financial products, they can go visit the bankbazaar web site, which really helps the customer to get the financial products with the best rates in the market. The web portal with bankbazaar is easy to understand and very easy to use and customer friendly portal, because it has designed in a simple way. Overall I am happy with the bankbazaar.com service.
      Was this review helpful? 0
      , new delhi
      Reviewed on May 25, 2017
    • Fullerton Personal Loan
      "Good and excellent"
      0.5 3.0/5 "Satisfactory"
      I haven't received any kind of status updation about my personal loan application. They have made a call and explained me about the product, after that they have not informed that why my loan got canceled. I would suggest Fullerton can work customer centric in future. Overall I can say I am satisfied with the service.
      Was this review helpful? 0
      , new delhi
      Reviewed on May 25, 2017
    • Karur Vysya Bank Personal Loan
      "The best service"
      0.5 5.0/5 "Blown Away!"
      Karur Vysya Bank offered me the personal loan. The documentation part was very simple, they asked me the documents which was easy to produce. I submitted form16, last six month bank statement and salary certificate along with the signature of my institute. Hardly they had taken four days, they delivered such a fast service. I felt easy to go with Karur Vysya Bank. They are good enough.
      Was this review helpful? 0
      , erode
      Reviewed on May 25, 2017
    • Bank Bazaar Customer Support
      "Good Service"
      0.5 4.0/5 "Great!"
      When I visited bankbazaar website I found easy to apply for the loan over there. The moment I submitted my loan application, I received calls from them and they were good in providing proper response for my loan application. I had no issues with bankbazaar as I received regular calls from them.
      Was this review helpful? 0
      , erode
      Reviewed on May 25, 2017
    • ICICI Bank Personal Loan
      "Not Satisfied"
      0.5 1.0/5 "Really Bad"
      I preferred ICICI bank for the personal loan. But the bank demanded me to provide salary payslip which I could not produce so I had to close the loan application with ICICI bank. But I got the loan from Karur Vysya bank. ICICI should have been provided alternate options for the documents.
      Was this review helpful? 0
      , erode
      Reviewed on May 25, 2017
    • HDFC Bank Personal Loan
      "Good Service"
      0.5 4.0/5 "Great!"
      HDFC Bank personal loan is fine, There is no drawback till now. There is no issues or challenges with them as such. They dint ask for too many documents for loan processing.The loan amount I have opted for 98 thousand and the rate of interest is 12.15% processing fee and charges 2400.
      Was this review helpful? 0
      , pune
      Reviewed on May 25, 2017
    • Bank Bazaar Customer Support
      "Good Service"
      0.5 4.0/5 "Great!"
      The services at Bankbazaar has been excellent, a quick process and the website is very helpful. There were no hassles in getting information about the banks and the offers and it was overall a very good experience. The follow up calls are satisfactory too
      Was this review helpful? 0
      , pune
      Reviewed on May 25, 2017
    • Fullerton Personal Loan
      "Good Service"
      0.5 4.0/5 "Great!"
      I did get a proper response from Fullerton after me applying for a personal loan They were on time to contact me and give me details. I did not wish to go ahead for the loan as the rate of interest and processing charges was very high from them but no other option I had taken with them with 22% Rate of Interest.
      Was this review helpful? 0
      , pune
      Reviewed on May 25, 2017
    • Bank Bazaar Customer Support
      "Very good in services"
      0.5 5.0/5 "Blown Away!"
      Bankbazaar surely needs a five stars as they were excellent in the process. The response was very much immediate and I am happy that with just a click away I was able to get connected to the banks and also get details of the same in one single page.
      Was this review helpful? 0
      , bangalore
      Reviewed on May 25, 2017
    • Standard Chartered Bank Personal Loan
      "Nice experience"
      0.5 4.0/5 "Great!"
      Standard Chartered bank was good and on time to give me details on the personal loan. I also like the turn around time. It was a nice experience. I could not go ahead because of the changes in my personal requirement. The overall experience was good and the deal was decent on the interest rate.
      Was this review helpful? 0
      , bangalore
      Reviewed on May 25, 2017
    • Bank Bazaar Customer Support
      "Fair enough"
      0.5 4.0/5 "Great!"
      I am aware about bankbazaar.com through promotional mails. I use bankbazaar web portal which is easy to use and user friendly. The mobile application with bankbazaar.com is working very well, therefore it is convenient for one to apply for any product. Overall I am satisfied with bank bazaar service.
      Was this review helpful? 0
      , chennai
      Reviewed on May 25, 2017
    • HDFC Bank Personal Loan
      "Good service"
      0.5 4.0/5 "Great!"
      The service was not bad with HDFC on my personal loan. They gave prompt response on my personal loan application. The interest rate was on the higher side. They took around 1 week to disburse my personal loan.I can say the whole Loan process just took a week time. Overall I am satisfied with the HDFC service.
      Was this review helpful? 0
      , chennai
      Reviewed on May 25, 2017
    • Bank Bazaar Customer Support
      "Good financial advisor"
      0.5 5.0/5 "Blown Away!"
      Every service of Bank Bazaar is good, they completely taking initiative on the customer's request. The website and the mobile application is convenient to check all the financial products and its very useful to check the credit score without any hassles.
      Was this review helpful? 0
      , aurangabad
      Reviewed on May 25, 2017
    • ICICI Bank Personal Loan
      "Its Average"
      0.5 1.0/5 "Really Bad"
      I have submitted all the documents to the bank, but process was not completed. I was staying in malkapur location it was not there in their system. Hence they have rejected the application and they didn't give any other option to take personal loan.
      Was this review helpful? 0
      , aurangabad
      Reviewed on May 25, 2017
    • Bank Bazaar Customer Support
      "Easiest web portal"
      0.5 3.0/5 "Satisfactory"
      Bankbazaar website is good and it is quite easy to navigate. It is like having all things in one basket so it was very easy to check all the banks and its interest rate and other charges. Also easy to apply for the loan on bankbazaar web portal.
      Was this review helpful? 0
      , mumbai
      Reviewed on May 25, 2017
    • Tata capital Personal Loan
      "Good Service"
      0.5 4.0/5 "Great!"
      Actually I had not submitted the required documents to Tata capital to avail the personal loan, therefore my loan application was closed. Other than that Tata capital was quite good in providing response. I do not recall anything about the rate of interest.
      Was this review helpful? 0
      , mumbai
      Reviewed on May 25, 2017
    • HDFC Bank Personal Loan
      "Nice experience"
      0.5 4.0/5 "Great!"
      I had taken my personal loan from HDFC Bank and they followed up well on my application. When I was busy and have asked them to call me back, they would willing do so at the time I asked them too. The offer on the interest rate and charges was also good.
      Was this review helpful? 0
      , bangalore
      Reviewed on May 25, 2017
    • Bank Bazaar Customer Support
      "Good services"
      0.5 4.0/5 "Great!"
      I am happy with Bankbazaar as they were very much responsive to my application. They were often contacting me and checked if my application with the bank is on track. The website is good and I appreciate the follow up calls which was done on a regular basis.
      Was this review helpful? 0
      , bangalore
      Reviewed on May 25, 2017
    • Bank Bazaar Customer Support
      "Supportive Service"
      0.5 4.0/5 "Great!"
      Bankbazaar services are quite good and approachable. They immediately contacted me on my loan application. I got a suggestions on the bank according to my loan requirement and my application had been assigned to the bank without any delay. I got regular followups and updates from Bankbazaar.
      Was this review helpful? 0
      , bangalore
      Reviewed on May 25, 2017
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