MSME loan schemes are designed and offered to Micro, Small and Medium Enterprises in India to help them sustain and grow business. The type of MSME loan offered varies from a lender to another and the interest rate is majorly dependent on the business profile. Generally, MSME loans are unsecured loans since the small business owners are often not in a position to pledge an asset.
The MSME loan schemes are offered by banks, NBFCs, and Online Lending Companies. However, it goes without saying that the application is approved or rejected only if the applicant meets the eligibility. The MSME loan schemes are defined on the basis of the purpose they serve. All credit facilities are either differentiated on the basis of the security or the purpose they serve.
The following are the different types of MSME loan schemes or business loans categorized on the basis of the purpose they serve:
Working Capital Loan
also read: how to manage working capital for a service business?
Working capital is required by the business owner to pay recurring and everyday expenses. Apart from the capital, working capital is also one important factor. It is also one of the most significant requirements for an MSME owner. If he is not having enough liquid cash, he can avail a working capital loan.
Machinery Loan
also read: how to avail a machinery loan for a small business?
A machinery loan is availed to buy new or upgraded machinery for the business. Machinery and equipment play the most important role in a business. The product quality, quantity, and cost per unit is dependent on the machinery. However, it is costly and often involves a huge investment. If the MSME owner does not have much capital for investment in machinery or equipment, he can avail a machinery loan for investment.
Capital Loan
also read: what are the types of working capital loan?
The purpose of a capital loan is very clear. It is availed to meet the capital requirements of the business. If the MSME owner is looking to increase business or wants to start a new product/service line, he can avail a capital loan in Noida, Uttar Pradesh. A capital loan is offered by many small business loan lenders in India.
Flexi Loan
also read: what are flexi loans & how are they useful for small business?
A flexi business loan is a credit facility. The lender sanctions a limit for the borrower that he can use any time. This type of MSME loan scheme ensures that the business owner has access to funds 24×7. He can withdraw the required money from the account and will be charged interest only on the withdrawn amount.
Apply for Working Capital Loan
Now that you know the 4 types of MSME loan schemes available in Noida, Uttar Pradesh, you can choose the one according to your need. Additionally, you can also register your business for free at the Connect App by ZipLoan to build your business network. Through the e-marketplace, you can create a business profile, list your products/services, find business, discover new business opportunities, and build connections.
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