Know About The Procedure of Getting An MSME Loan


What is MSME? MSME refers to enterprises that are micro, small and medium. Anyone operating an MSME business may have diverse enterprise needs.

From purchasing inventory to buying new equipment to paying salaries to employees and cash flow maintenance, they may have to manage so much. Not having enough cash at hand may not see the aforementioned aspects in action and may lead to the downfall of the business.

It is where liquidating assets and savings may also not be a prudent idea. It is because you can always apply for the MSME loan online and cover your different needs. The MSME loan procedure is nowadays made smooth by leading lenders in India. On that note, let’s check out the MSME loan procedure and its varied benefits in this post!

Standard procedure of an MSME loan 

  1. The first step is to land on the website of the lender that you wish to apply for the MSME loan with. Once on the website, you will then need to click on the ‘Apply Now’ button on the MSME loan page.
  2. Now, a new online loan application page will open. You will be required to fill the online form with mandatory details and then click on the ‘Submit’ button.
  3. Once done, the agent of the lender will get in touch with you to take you through the loan offer and collect your documents for verification.
  4. If everything falls in place, you will get the MSME loan approval and get the sanctioned amount into your bank account shortly.

It is the standard MSME loan procedure that you just went through. However, the MSME loan procedure may differ from lenders to lenders.

The MSME loan process of all leading lenders is generally mentioned on their websites. You can go through it in advance and prepare accordingly.

What is an MSME loan best suited for?

Many business owners have this question – what is MSME loan best suited for the MSME loan works well for different business needs, such as:

  • To invest in the infrastructure of your firm.
  • For meeting your working capital needs.
  • To install and buy new machinery, equipment and plant.
  • To make ways for multiple overheads.

What are the benefits of an MSME loan?

The online MSME loan comes with many advantages. Let’s take a look:

  • A bigger loan amount

To meet your multiple business needs, you don’t have to worry and even think of liquidating your assets and savings. It is because availing of the MSME finance from a known lender may let you access up to Rs.45 lakh. The final loan amount may depend on your overall eligibility and the lender’s policies.

  • Quick processing 

This hassle-free MSME loan comes with an instant processing feature. It means that you can get loan approval within 24 hours* if you are eligible. Also, you don’t have to keep any collateral for it. A higher CIBIL score of 750 or more is considered ideal by lenders.

  • Flexi loan feature 

The Flexi loan feature lets you withdraw an amount out of your total loan limit as many times as per your needs. In turn, you can pay only the interest on the utilized amount as the EMI and nothing extra. This way, you can also enjoy savings of up to 45%* on EMI payments.

Applying for the MSME loan also means submitting fewer documents and repaying the loan over a flexible tenor, and much more. If you are ready, you can start applying for the MSME loan and keep your business operative without cash crunches.

Bajaj Finserv provides pre-approved deals on business loans, home loans, personal loans and more. It can make the overall loan processing smooth and faster. You can share your basic details like your name and mobile number to discover your pre-approved loan offers today only.