Micro, Small, and Medium Enterprises (MSME) are divided into two categories:
MSME Loans refer to the loans sanctioned to the Micro, small and medium enterprises for their functioning. Read on to know everything about MSMEs as well as the MSME loans.
What Is MSME?
MSME refers to Micro, Small and Medium Enterprises based on the classification made by the government.
Micro: Investment of not more than Rs. 1 crore in plant and machinery or equipment, and not more than Rs. 5 crores in annual turnover.
Small: Investment of not more than Rs.10 crore in plant and machinery or equipment, and not more than Rs.50 crore in annual turnover.
Medium: Investment of not more than Rs.50 crore in plant and machinery or equipment, and not more than Rs.250 crore in annual turnover.
MSME Loan Benefits And Features
Micro, small, and medium businesses are referred to as MSME. Such businesses have a wide range of requirements, including the procurement of inventory, the purchase of new equipment,
the payment of salaries to employees, and the maintenance of cash flow. MSME loans are a cost-effective way to meet all of these needs.
This credit facility, which is a collateral-free loan for MSMEs, can be easily accessed by small enterprises at a low rate of interest. This finance option can help small business owners, women entrepreneurs, and start-up owners cover their anticipated and unplanned needs by having simple eligibility requirements and requiring minimal paperwork.
What Can This Loan Used For?
These loans can be used for a variety of purposes, including:
Features
The features of MSME loans offered by Loan Tap are:
Eligibility Criteria
Documents Required For The Loan
We’ll need the following papers to process your loan application.
However, if further documentation is required, you will be asked to provide them.
LoanTap offers MSME loans from Rs 50,000- Rs 2,50,000 for tenures ranging from six months to thirty six months at affordable rates.
Why should you opt for an MSME loan instead of using a credit card?
Using an MSME loan can give wings to your dreams. You can use the amount to meet your immediate financing needs. It is far more convenient than depending on relatives or the unorganised sector. It is a formal loan with clearly written terms of agreement. It will help you to grow your business in the initial days and you can take your dreams forward.
LoanTap understands the needs of small entrepreneurs and the difficulties they face in getting a small loan sanctioned. The process is lengthy and cumbersome and involves too much paperwork. Moreover, there is a long waiting process before the loan is finally disbursed. LoanTap makes efficient use of technology to ensure that MSME loans are processed very quickly and without any burden on the borrower. The user interface is extremely friendly and can be filled quite comfortably by the borrower. The documents that are required to be uploaded are standard documents that are readily available. The quicker you complete the process, the less time it takes for LoanTap to scrutinize the documents and approve the loan. If the documents are in order, the loan is approved immediately. Else, further documents are requested from the applicant to complete the process. It does not take more than 24-36 hours from start to finish for the loan to be disbursed to the mandated account.
LoanTap is focused on reaching out to the underserved segments of the population with the help of technology so that it can provide finance to deserving borrowers. This will help in fulfilling the dreams of millions who fall short of achieving their aspirations because they do not have access to funds at the right time.
If you are an MSME, you have reached the right place. For all your MSME loan needs, please visit our website and we will be glad to assist you. With LoanTap, your dream is only a few clicks away.
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