Comprehensive financing solutions for Micro, Small, and Medium Enterprises under government-backed schemes. Access subsidized interest rates, collateral-free loans, and dedicated support for business growth and expansion.
Loan amounts for MSMEs
Lower interest rates
Many schemes available
Government-backed financing for India's economic backbone
MSME (Micro, Small, and Medium Enterprises) loans are specialized financing products designed for small businesses that contribute significantly to India's economy. These loans are supported by various government schemes and offer favorable terms including subsidized interest rates, collateral-free options, and priority sector lending benefits.
MSMEs are classified based on investment in plant and machinery for manufacturing enterprises, or investment in equipment for service enterprises. The classification helps determine eligibility for various government schemes and loan products.
Smallest category of MSMEs with investment up to ₹1 crore in manufacturing or ₹10 lakhs in services.
Medium-sized businesses with investment between ₹1-10 crores in manufacturing or ₹10 lakhs-2 crores in services.
Larger businesses with investment between ₹10-50 crores in manufacturing or ₹2-5 crores in services.
Supported by various government schemes and initiatives for MSME development
Lower interest rates compared to regular business loans with government subsidies
Many schemes offer loans without requiring collateral or security
Faster approval process with simplified documentation requirements
Funds can be used for business expansion, working capital, or equipment purchase
Designed to support business expansion and long-term sustainability
Popular MSME financing schemes you can benefit from
Micro Units Development & Refinance Agency scheme for micro enterprises.
Loan Amount: Up to ₹10 lakhs
Interest Rate: 7.3% - 9% p.a.
Tenure: Up to 7 years
Credit Guarantee Fund Trust for Micro and Small Enterprises.
Loan Amount: Up to ₹2 crores
Coverage: Up to 85% guarantee
Processing Fee: 0.37% - 0.57%
Scheme for SC/ST and women entrepreneurs to start manufacturing businesses.
Loan Amount: ₹10 lakhs - ₹1 crore
Interest Rate: As per MCLR
Tenure: Up to 7 years
Prime Minister's Employment Generation Programme for setting up micro enterprises.
Loan Amount: ₹5 lakhs - ₹25 lakhs
Subsidy: 15-35% of project cost
Interest Rate: 11% p.a. (fixed)
Credit Linked Capital Subsidy Scheme for technology upgradation.
Subsidy: 15% of plant & machinery cost
Loan Amount: Based on project cost
Maximum Subsidy: ₹15 lakhs
Micro and Small Enterprises - Cluster Development Programme.
Funding: Up to ₹10 crores per cluster
Support: 70% government, 30% industry
Duration: 2-3 years
Why choose government-backed MSME financing
Government subsidies and priority sector lending result in competitive interest rates for MSMEs.
Government-backed guarantee schemes reduce lender risk and improve loan approval chances.
Many schemes offer loans without requiring collateral, making financing accessible to more businesses.
Simplified procedures and dedicated MSME branches ensure quicker loan processing and disbursal.
Access to training, mentorship, marketing support, and other business development programs.
Longer repayment tenures and flexible EMI structures designed to match business cash flows.
Requirements for MSME loan applications
Simple process to get your MSME loan
Get your business registered under Udyam Portal and obtain MSME certificate.
Choose the appropriate government scheme based on your business needs and eligibility.
Submit application with required documents and business plan for initial assessment.
Receive loan approval and funds transferred to your business account.
Prepare these documents for a smooth MSME loan application
Understanding the terms and conditions of MSME financing
Micro: Up to ₹10 lakhs
Small: Up to ₹2 crores
Medium: Up to ₹5 crores
7.3% - 12% p.a.
Scheme-dependent, subsidized rates available1 - 10 years
Depends on loan type and scheme0.5% - 2%
Varies by lender and schemeCollateral Free to
Secured Options
7-21 working days
After document submissionCalculate your monthly EMI and plan your MSME loan repayment schedule
Common questions about MSME loans
Udyam Registration is the new process for MSME registration introduced by the Government of India. It's mandatory for availing government schemes, subsidies, and benefits. It replaces the old UAM/Udyog Aadhaar system and provides a unique Udyam Registration Number (URN) for your business.
Yes, many MSME schemes like MUDRA loans, CGTMSE-covered loans, and certain priority sector lending offer collateral-free loans up to specified limits. For higher amounts, collateral may be required, but government guarantee schemes reduce the risk for lenders.
MUDRA is a specific scheme under the MSME umbrella focused on micro enterprises. It offers loans up to ₹10 lakhs in three categories (Shishu, Kishor, Tarun) with subsidized interest rates. Regular MSME loans can be for higher amounts and may include term loans, working capital, or equipment financing.
Processing time varies by scheme and lender, typically ranging from 7-21 working days after submitting all documents. Government-backed schemes often have faster processing due to simplified procedures and priority status.
Yes, existing businesses that meet MSME criteria can apply. Some schemes like PMEGP are specifically for new businesses, while others like MUDRA and CGTMSE are available for both new and existing MSMEs. Your business must be registered under Udyam and meet the investment/turnover criteria.
MSME registration provides access to government schemes, lower interest rates, collateral-free loans, subsidies, priority sector lending benefits, protection from delayed payments, preference in government tenders, and various business development support programs.
Get access to government-backed financing schemes designed to help your business grow and succeed.