Multiple banks. Different interest rates. Call it a "conflict of interest".
  • MSME (Micro Small and Medium Enterprises) Loan is Rated as "Great!" by 101935 Users

    Fees & Charges

    Promised Interest Rate

    Customer Service

    Responsiveness

    Personal Loan BYTES FROM OUR KITCHEN

    MSME (Micro Small and Medium Enterprises) 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

    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.

    Effects of 2018-19 Union Budget on the MSME Sector

    Indian Finance Minister - Mr. Arun Jaitley - introduced a number of proposals targeting the Micro, Small, and Medium Enterprise (MSME) sector during the 2018-19 Union Budget held on 1 February 2018. Being one of the major sectors for growth and employment in the country, the Government plans to improve the financing for the capital requirement of the industry. In addition to MSME, the Union Budget also focused on the agriculture, health, finance, infrastructure, social protection, education, employment, and other sectors. During the meeting, the minister also voiced his proposals regarding health and educational cess, tax, and initiatives to improve the cash economy of India.

    Highlights of the 2018-19 Union Budget on the MSME Sector

    • The Union Budget of the upcoming fiscal year aims to improve the financing for MSMEs by offering prompt loans, incorporating policies for non-performing assets, and reducing tax burden.
    • The meeting also indicated a review of refinancing policies and eligibility criteria for Non-Bank Finance Companies (NBFCs).
    • The Finance Minister also mentioned that the policies and institutional development measures for Fintech companies might also be revamped to promote their growth.
    • Apart from launching the ‘‘Start-Up India’’ program, the Government intends to encourage the Venture Capital Funds (VCF) and the angel investors by introducing policies and an exclusive taxation system directed towards alternative investment funds.
    • For the forthcoming 3 years, the Government proposes to contribute 12% of the earnings of new employees of all sectors towards Employees' Provident Fund (EPF).
    • The Employees Provident Fund and Miscellaneous Provisions Act, 1952 will be amended to reduce the employee contribution for female workers to 8% for the first 3 years of employment. However, the employers’ contribution towards the EPF will remain unchanged at 12% or 10% in this case.
    • Under the existing Pradhan Mantri Kaushal Kendra Programme, the Government aims to set up model aspirational skill centers in all the districts of the country.
    • For the upcoming fiscal year, the Finance Minister proposes to allow a corpus of Rs.7,158 crore for the textile sector.

    In addition to the above mentioned points, the Union Budget 2018-19 saw a number of modifications to improve the economy of the country.

    MSME (Micro Small and Medium Enterprises) Loan Reviews

    • Axis Bank Personal Loan
      "Excellent service"
      0.5 4.0/5 "Great!"
      I have applied for Axis Bank Personal Loan through online .The agent clearly explained the process of the loan.The rate of interest was as ok and the processing fee was also ok. while submitting the documents not yet faces any issues .The documentation part was more.The loan amount got on time .The loan amt was sufficient s well .The Overall Service is Good.
      Was this review helpful? 0
      , chennai
      Reviewed on Mar 24, 2019
    • Bank Bazaar Personal Loan
      "Excellent service"
      0.5 4.5/5 "Excellent!"
      I came to know about Bank bazaar through advertisement only.Then i have checked for credit score .Bank bazaar is providing very good service as of now need to avoid calling the same person frequently.Then i have tried to apply for Tata Capital Personal loan .The agent clearly explained the process of the loan and not yet faced any issues as of now.The rate of interest was little bit high and the processing fee was acceptable .The Overall Service is Good .
      Was this review helpful? 0
      , chennai
      Reviewed on Mar 24, 2019
    • Tata capital Personal Loan
      "Excellent service"
      0.5 4.5/5 "Excellent!"
      I have applied for Tata capital Personal Loan.I have not faced any issues. The rate of interest was littile bit high and the processing fee was little bit acceptable.The agent clearly explained the process of the loan.I have not faced any issues till now .The Overall Service is Good and satisfactory .
      Was this review helpful? 0
      , chennai
      Reviewed on Mar 24, 2019
    • Bank Bazaar Personal Loan
      "GOOD PORTAL TO USE"
      0.5 4.0/5 "Great!"
      It is the first time experience with the Bankbazaar.com and i had a very good experience also i am using it through the mobile application as the application is user friendly and convenient to access. The customer service is very good and responsive. by explaining the details of the loan.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Mar 24, 2019
    • ICICI Bank Personal Loan
      "GOOD"
      0.5 5.0/5 "Blown Away!"
      I have been using the personal loan with the ICICI since from last few years the loan amount with them was good also the documentation process was simple and it was hassle free to use. The rate of interest with this nominal added on that the service is very good with this bank.
      Was this review helpful? 0
      , ghaziabad
      Reviewed on Mar 24, 2019
    • ICICI Bank Personal Loan
      "GOOD"
      0.5 5.0/5 "Blown Away!"
      I have taken the personal loan with the ICICI BANK the loan amount with this bank what they have offered was satisfactory. The rate of interest with this bank was nominal also i am using it since from last one year and it is good to use.
      Was this review helpful? 0
      , ghaziabad
      Reviewed on Mar 24, 2019
    • Bank Bazaar Personal Loan
      "ONE STOP SOLUTION"
      0.5 5.0/5 "Blown Away!"
      Bankbazaar.com i have been using it since from last few months and i have a very good experience i have been using it through the mobile application as the application is user friendly also it is convenient to access. The customer service is good and they are responsive.
      Was this review helpful? 0
      , ghaziabad
      Reviewed on Mar 24, 2019
    • IndusInd Bank Personal Loan
      "EXCELLENT"
      0.5 5.0/5 "Blown Away!"
      There is no particular reason for taking the personal loan with the INDUSIND BANK. The loan amount was good and the rate of interest was 10.5% which is nominal when compared to the others. The documentation process was easy and it is comfortable.
      Was this review helpful? 0
      , ghaziabad
      Reviewed on Mar 24, 2019
    • Bank Bazaar Personal Loan
      "Good Service"
      0.5 5.0/5 "Blown Away!"
      I came to know about Bank bazaar through online only .The Bank bazaar is the only online website giving all details about the banking products .I have applied for Tata Capital Personal Loan and not yet faced any issues .The agent clearly explained the process and not yet faced any issues as of now.The Overall Service is Good.
      Was this review helpful? 0
      , ahmedabad
      Reviewed on Mar 24, 2019
    • Tata capital Personal Loan
      "Good Service"
      0.5 5.0/5 "Blown Away!"
      I have applied for Tata capital Personal Loan. No clue on the rate of interest and charges levied by them,The agent clearly explained the process .I have not faced any issues till now .I have cancelled the plan of taking the personal loan since not require the personal loan .
      Was this review helpful? 0
      , ahmedabad
      Reviewed on Mar 24, 2019
    • Kotak Personal Loan
      "EXCELLENT"
      0.5 5.0/5 "Blown Away!"
      The reason for taking the personal loan with the KOTAK MAHINDRA BANK is i am an existing customer customer with this bank. The loan amount was good also the rate of interest was 11.5% with this loan and the duration is for 48months for repaying he loan.
      Was this review helpful? 0
      , bangalore
      Reviewed on Mar 24, 2019
    • Bank Bazaar Personal Loan
      "USER FRIENDLY PORTAL TO USE"
      0.5 5.0/5 "Blown Away!"
      It is the first time experience with the Bankbazaar.com and i had a very good experience with the Bankbazaar.com. I am using it through the mobile application as the application is user friendly and convenient to access. The customer service is very good.
      Was this review helpful? 0
      , bangalore
      Reviewed on Mar 24, 2019
    • Early Salary Personal Loan
      "GOOD"
      0.5 5.0/5 "Blown Away!"
      It is the best loan that i have taken with the EarlySalary when compared to the other so i have taken this loan. The documentation process was simple and and also i got a loan within a day after the documents. The loan amount was lesser with this loan as they have given also the rate of interest was lesser.
      Was this review helpful? 1
      , bangalore
      Reviewed on Mar 24, 2019
    • HDFC Bank Personal Loan
      "GOOD"
      0.5 4.0/5 "Great!"
      I have applied for the personal loan with the HDFC BANK and have been using it since from last few years and the documentation process was simple and it is easy procedure to get the loan. I got the loan within 10-15 days with this bank. The rate of interest was lesser with 11.5% with 4 years of duration.
      Was this review helpful? 1
      , bangalore
      Reviewed on Mar 24, 2019
    • Bank Bazaar Personal Loan
      "USER FRIENDLY PORTAL TO USE"
      0.5 5.0/5 "Blown Away!"
      Bankbazaar.com i am using it from last one year and i have a good experience and i am using it through the mobile application as well as the website both are easy and user friendly portal to access. The customer service is good and they are responsive.
      Was this review helpful? 0
      , bangalore
      Reviewed on Mar 24, 2019
    • Early Salary Personal Loan
      "GOOD"
      0.5 4.0/5 "Great!"
      The loan amount was lesser along with that it is with lesser duration which is comfortable so taken the personal loan with the EarlySalary. The documentation process was simple and the documents collected at the doorsteps. I got the loan within 8-10days with this loan also, the loan amount is good with 12-13% of rate of interest.
      Was this review helpful? 0
      , bangalore
      Reviewed on Mar 24, 2019
    • Axis Bank Personal Loan
      "GOOD"
      0.5 5.0/5 "Blown Away!"
      I have applied for the consumer durable loan with the AXIS BANK they have offered with the good loan amount also the documentation process was simple to get the loan. I have taken the MOBILE PHONE with this bank, the duration for repaying the loan is for 9 months.
      Was this review helpful? 0
      , ahmedabad
      Reviewed on Mar 24, 2019
    • Bank Bazaar Personal Loan
      "CONVENIENT PORTAL"
      0.5 4.0/5 "Great!"
      Bankbazaar.com this is the first time experience as i have been using it through the website the portal is convenient also it is user friendly to access.The customer service is good and also they are good by explaining the details of the loan.
      Was this review helpful? 0
      , ahmedabad
      Reviewed on Mar 24, 2019
    • Early Salary Personal Loan
      "AVERAGE"
      0.5 4.0/5 "Great!"
      The documentation process was good with the EarlySalary where i have applied for the personal loan. The loan amount was good also the processing fee was nominal. The rate of interest was higher with this loan when compared to the other loans.
      Was this review helpful? 0
      , ahmedabad
      Reviewed on Mar 24, 2019
    • Early Salary Personal Loan
      "Excellent service"
      0.5 5.0/5 "Blown Away!"
      I have applied for Personal Loan Early Salary. The agent clearly explained the process .The rate of interest was nominal and the processing fee was nominal. I have got loan amount on time .The loan amount was sufficient and not yet faced any difficulties.The Overall Service is Good and Satisfactory .
      Was this review helpful? 0
      , gurgaon
      Reviewed on Mar 24, 2019
    Common Loader Icon

    Display of any trademarks, tradenames, logos and other subject matters of intellectual property belong to their respective intellectual property owners. Display of such IP along with the related product information does not imply BankBazaar's partnership with the owner of the Intellectual Property or issuer/manufacturer of such products.

  • reTH65gcmBgCJ7k
    This Page is BLOCKED as it is using Iframes.