MSME Loan Scheme: This is a Government of India scheme under which loans are given to micro, small and medium enterprises. It supports the growth and development of small businesses for which the government provides loans and financial assistance. This loan is given to you for business expansion and operations and for other financial requirements.
An attractive interest rate is offered in this loan so that the loan applicants can easily repay it in installments. Apart from this, no collateral or security is required. This loan is given without security. The loan repayment period is from 12 months to 5 years.
What is MSME Loan Scheme?
This scheme has been made to provide micro, small and medium loans in which banks provide loans to MSME and startup industries so that they can get financial assistance to start their business and take their business forward. This is a short-term loan in which the loan has to be repaid in a period of 12 to 5 years.
The loan amount is selected by the applicant’s business, his ability to pay and financial stability. In this scheme, applicants can take a maximum loan of up to Rs 5 crore. Loans are given by various types of government and private banks, while the interest rate in this can also be from 8% to 16%. The interest rate depends on the applicant’s credit score and his financial transactions.
Objective of MSME Loan Scheme
The objective of this scheme is to provide financial assistance to make businesses successful so that working capital requirements can be met and necessary equipment like machinery etc. can be purchased for new business. Government provides assistance for this and a very low interest rate is charged on this. Through this, a businessman can easily expand his business and create a good income.
MSME Loan Scheme Eligibility
- Any resident of India can apply for this loan. Applicants of minimum 18 years and maximum 70 years can apply for the loan.
- Retail traders, manufacturing sector traders, women traders, anyone can take this loan.
- Your credit score for this loan should be 750 or more.
- Your financial condition should be good and your financial transaction should look good.
- The applicant should have the ability to repay the loan and he should not default with any bank.
Benefits of MSME Loan Scheme
No guarantee is required to take a loan under MSME scheme. Subsidy is also given under this scheme. Tax exemption and other incentives are also given under this scheme. Assistance is given for promotion of business under this scheme. In this, you can get a loan of up to 5 crores. In this, you have to pay interest of only 8% to 16%.
