MSME Loans

Micro, Small and Medium Enterprises (MSME) loans are the credit institution to the MSMEs given by banks and NBFCs. The loans taken under MSME loan schemes are often unsecured business loans meaning there is no requirement for collateral. The maximum amount of loan that can be taken is up to Rs. 2 crores with the repayment tenure up to 5 years, more in some cases. The interest rates on MSME loans vary depending upon the borrower’s portfolio as well as the lending institution type.

MSME loans are taken by start-ups, self-employed professionals, MSMEs, business owners, Sole Proprietorships, Private and Public Limited Companies (PLCs), Partnership Firms, LLPs, and other business establishments offering manufacturing, services and Trading sectors. 

There are various MSME loan government schemes to benefit MSMEs. MSME loans are also referred to as SME loans.

Classification of MSMEs

Enterprise TypeInvestment in Plant & Machinery EquipmentAnnual Turnover
Not more than Rs. 1 crore
Not more than Rs. 5 crores
SmallNot more than Rs. 10 crores
Not more than Rs. 50 crores
MediumNot more than than Rs. 250 croreNot more than Rs. 250 crore

When Should You Opt for an MSME Loan?

An MSME loan, secured or unsecured, can help the micro, small and medium business owners to maintain the cash flow along with providing the capital for investment and business expansion. Below are mentioned some of the best scenarios that help you decide whether should you opt for an MSME loan:

  • You aim to start building construction for your business
  • You aim to buy a factory and/or factory supplies such as lab equipment, Plant and Machinery, electrical appliances, furniture etc.
  • You aim to buy new or second-hand-at-best equipment or a cluster of vehicles 
  • You aim to settle salaries, maintain inventory, buy stock and/or raw materials, payments, debts and other business-pertaining costs
  • You aim to introduce a new product/service line with the purpose of paying the suppliers via Bill Discounting
  • You aim to expand your business
  • You aim to target marketing and advertising
  • You aim to replenish/refurbish current business premises
  • You aim to quench any other business need

Benefits of Unsecured MSME Loans

  • Instant access to the credit
  • In case of an unsecured MSME loan, you do not have to pledge any of your property to the lending institution such as a bank or an NBFC.
  • Offline and online application, processing and approval
  • Quick and speedy loan approval and disbursal
  • Flexible repayment tenure from 1 year to 5 years
  • Lower interest rates 
  • Consolidation of all your debts 
  • Fewer number of documents required 
  • Faster turnaround time
  • One of the best options with improved cash flow
  • Better control over business by avoiding cash crunch and low cash availability 
  • Short term commitment 

Why Maxigain Capital for an Unsecured MSME Loan?

If you are a start-up or an existing business looking for extra capital to start a business, expand the existing one or maintain the daily business needs, free yourself from the hassles and tassels of obtaining an MSME loan by reaching out to us. Maxigain Capital is known for its expertise and quick solutions when it comes to financing. 

When you hire our services, you get a team to work with your needs. We first listen to your needs and your expectations. We then guide you into the process of applying for the unsecured MSME loan. If you have any questions or doubts anywhere in the process, we will be happy to answer them. While our team connects with a huge network of lenders, you will be free to go back to attending your business with more energy, vision and possibilities. 

At the end, you get the best deal with Maxigain Capital with the maximum business loan possible within 24 hours.

MSME Financing

Frequently Asked Questions

All private and public sector banks are mandated by the Central Bank to offer loan support to the MSME sector. 

For an unsecured MSME loan, you can apply up to Rs. 2 crores.

As per the RBI regulations, banks have been mandated to offer MSME loans of up to Rs. 10 lakh without accepting collateral. Sometimes, depending on the financial position and track record of the MSME units, banks can increase this limit to Rs. 25 lakh.

There is no difference between an MSME loan and a SME loan. SME loans are just another nickname for MSME loans. 

Of course, yes. Besides the loan support, the Ministry of MSME backs up the MSME sector in various ways with the promotion of Information and Communication Tools (ICT), cluster development, skill development, improvement of manufacturing competitiveness, improvement of quality of the products and/or services along with the market support through Marketing Assistance Scheme (MAS).

Maxigain Capital can get you an in-principal confirmation from the bank within 3 working days.  We help MSMEs with:

  • Obtaining the maximum amount of loan without needing collateral
  • At the lowest interest rate possible 
  • Having the hassle-free and painless procedure in getting the business loan, and
  • Having the pleasure of fastest turnaround

Our USP lies in bearing a huge network of lending facilities. Once we have gathered all your documents, we span out in the market to get the best deal, and also help you out in the pre and post-application process. You do not have to worry about getting constant inquiry or follow-up calls from the lending facilities because we believe in keeping our clients’ personal details safe and sound. In simple words, you focus on your business while letting us do the heavy lifting, for you!

Yes. MSME sector is well under the umbrella of Priority Sector Lending.

Priority Sector Lending is the system of lending to those sectors who are influential to a massive population, are employment-intensive and are financially sensitive. Sectors under Priority Sector Lending are free to enjoy the benefits. 

Apart from the MSME sector, education, agriculture, housing and the export sectors are a few more examples that fall under Priority Sector Lending system.

Trusts, NGOs, and charitable enterprises are excluded from small MSME loans

Dos of MSME Loan Application

  • Maintain a healthy credit score and history
  • Gather all your documents prior to applying
  • Have a business plan ready at hand
  • Carefully decide the loan amount you need

Don’ts of MSME Loan Application

  • Apply with multiple lending institutions
  • Delay your repayments for current debts/bills
  • Choose a lender with upfront fee
  • Not utilizing the loan amount fully

The optimal way to maximize the benefits of an MSME loan is to invest the credit in working capital optimization, inventory management and machinery/equipment purchasing.

Eligible Enterprises 

Individuals, MSMEs, business owners, women entrepreneurs, self-employed professionals, and people under the umbrella of SC/ST/OBC category and other business units, Private and Public Limited Companies, Sole Proprietorships, Partnership Firms, and Limited Liability Partnerships (LLPs) involved in trading, manufacturing and services.

Excluded enterprises: Trusts, NGOs and charitable enterprises are not eligible for small MSME loans 

  • Credit score should be equal to or higher than 750. In case the credit score is low, but there are genuine reasons for the same, then exceptions can be made. 
  • Business vintage: Minimum 1 year
  • Business turnover: Minimum Rs 25 lakhs for existing businesses. This can vary from one lending institution to another 
  • No default on any financial instrument in the past
  • Clean credit history
Pricing Plan for MSME Registratoin

Single customized MSME registration Plan for your businesss MSME Registration need


  • MSME registration
  • MSME Cetificate
  • Solution to all MSME Querries
  • Dedicated MSME Expert

How we work

  • Register/login

  • Select Service

  • Make Payment

  • Submit required document

  • An expert will contact you

  • Sit back and relax

Why Choose Us


Expert Assistance

You get to speak to Professionals for expert advice.


No Hidden Cost

With no hidden cost, you will find no additional cost for any services.


Affordable Pricing

We provide cost effective services for our clients.


Fast Process

Maxigain online service portal makes our process superfast.


Huge Experience

30+ Years’ experience of providing online CA services.


Need Funding

We help you get working capital or funding for expansion.