MSME loan is a credit extended to MSMEs in Indore for the development of the MSME sector. It helps in promoting production, efficiency, and even marketing. The amount availed under this type of loan can be used for a number of purposes but only related to business. There are many loan lenders in India who help micro, small and medium enterprises with the funds to grow, develop, and market their products and services.
All lenders offer differ MSME loan schemes at different terms and conditions. These loan products are designed to meet different financial needs of the borrower. There are several government MSME schemes as well, such as MSME Loan in 59 minutes. Let’s first take a look at the benefits of MSME loans for the small business owners in India.
Benefits of MSME Loan
also read: how to apply for msme loan in India?
Ticket Size: The loan ticket size for loans for MSME starts from as low as just Rs. 1 lakhs and goes up to Rs. 5 lakhs. And according to the size of the enterprise, it can be tailored.
Tailor-made: MSME loans are designed according to the needs of the enterprise. The business loan companies in India understand that not every business has the same need and therefore, they offer different loan products.
Collateral-Free: Most loan lenders these days offer MSME loan without collateral. This enables the small business owners who do not have security to get access to additional sources of funds.
Interest Rate: The MSME loan interest rates are very attractive and affordable. Additionally, many lenders also charge interest on the reducing amount.
Assistance: The lenders these days also offer assistance and other services to the borrowers. The relationship manager of the lenders helps in choosing the right loan product and tenure. They will assist until the end of the loan process.
Transparency: The loan application process and rate structure are absolutely transparent. There are no hidden charges and the lender’s representative will even keep the borrower updated through e-mails and messages.
Process for MSME Loan Application in Indore
also read: flexi business loans: advantages for msmes
How to apply for an MSME loan? To apply for a loan for MSME, follow the below-mentioned steps:
Step 1: Search for the different lenders who offer MSME loans in Indore. And shortlist them according to their products. You can check the features of their loan products and choose the lender whose product fulfill all your requirements. You must also consider the documents required and the eligibility criteria of the lender. If you are able to meet both the requirements completely, then only shortlist the loan lender.
Step 2: After shortlisting the lender, you next have to apply for an MSME loan. You can fill the online loan application. In the application, you have to fill your basic personal and business details.
Step 3: The next step is to upload the required documents for the loan. You have to upload the soft copies of the documents required, preferably in the PDF format. The PDF format will help the lender to process the application faster and thus, the loan will be approved/disapproved faster.
Step 4: Here, the lender will process the application and verify the provided information and documents. He would check all the provided information and if everything seems fine, he will approve the loan. During this step, he will keep you updated through SMS and e-mails.
Step 5: If the loan application is approved, the sanctioned amount will be disbursed. However, if the application is rejected, you will be notified about the same with the reason and the time when you can next apply for a loan.
Now that you know the key benefits of loan and easy step to apply for it, you can avail a business loan in Indore and take your business to new heights. Additionally, you can register your MSME and offered products/services on the Connect App by ZipLoan. You can upload the videos of the products and services on the App and directly sell and purchase products online. You can also connect with traders, wholesalers, retailers, and manufacturers in India and grow your business network.