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