Running an MSME in today’s economic climate is quite a task and staying profitable is closely linked with aggressive growth. It is no surprise that this is an undertaking that requires a significant amount of capital. This can be a problem for a small business, no matter whether they are established or still establishing themselves in the market. Thankfully, business owners can access funding through a specialised offering known as the MSME business loan.

To address the unique and diverse needs of a small business, lenders provide business owners with this tailored financial instrument. To know why an MSME business loan is a suitable credit facility for all micro, small and medium enterprises, read on.

Simplifies access to working capital

Given the highly competitive and fast-paced nature of the MSME market, business owners may not have the luxury of time needed to navigate tedious loan processing procedures. This is something that is quite common with traditional credit facilities and can make access to funding quite a time-consuming undertaking. Thankfully, specialised MSME business loans offered by leading lenders do away with such requirements.

Today, business owners can qualify for these offerings by meeting simple and easy criteria. Moreover, leading lenders further add to this convenience by requiring minimal documentation to process these loans. To ensure that you don’t face any delays, here are a few general eligibility criteria you should meet before you apply for an MSME business loan.

• Applicants must be residing Indian citizens
• Applicants must have a CIBIL score of at least 750
• Applicants must be between the ages of 25 and 65 years
• Applicants must maintain a business vintage of at least 3 years
• Applicants’ business entities must qualify under:
  • Partnership firm
  • Public or private limited company
  • Sole proprietorship
  • Limited liability partnership

Provides funding without risking business assets

A key benefit to opting for an MSME business loan is that you don’t need to pledge your business assets as collateral. Depending on the lender, you can access a sizable sanction, up to Rs.45 lakh, without any hassles. This is crucial, especially in a volatile and uncertain economy, as pledging assets to avail funding is a very risky undertaking. Moreover, the collateral-free nature helps ensure that the loan gets processed a lot quicker and thus, minimises the chance of delays. 

Allows unrestricted usage of funding

Whether you’re running a micro, small or medium-sized business, there is always a long list of business expenditures to undertake. You may need funds to bolster working capital, expand business operations, hire new staff, buy new machinery or restock the inventory. Regardless of the expense, these MSME business loans  can be used freely, without any restrictions. This ties in perfectly to the dynamic needs of any flourishing business in the industry and is a privilege you may not enjoy with other offerings.

Grants access to specialised MSME loan interest rate offers

Since an MSME business loan is specially designed for these entities, many lenders tailor the loan particulars as well. As such, you are likely to get funding at a better, more favourable interest rate. Availing such a benefit is crucial to any business as it dictates the total interest outgo of the loan. Naturally, a lower outgo is good for business turnover.

Serves as the ideal solution for short-term business goals

MSME business owners enjoy a great deal of flexibility with these tailored offerings. Most lenders offer a lengthy tenor, some lasting up to 7 years, and this works well for short-term business goals. With this instrument, you aren’t locked in and have the option to optimise your outgo comfortably to ensure operational costs are never at risk all through repayment.

The MSME business loan has a lot to offer business owners, especially those with enterprises in the nascent stages. However, to truly enjoy these benefits, it is important that you scout for an offering that gives value at every turn. One good option that meets this criterion is the Bajaj Finserv MSME Loan. Armed with this loan, you can avail of a sizable, collateral-free sanction and get access to other value-added loan features.

With this offering, you can access funding up to Rs.45 lakh at an attractive MSME loan interest rate. Further, thanks to the flexible tenor of up to 84 months, you can easily tailor repayment to suit your business’ cash flow. This loan also allows you to enjoy quick loan processing and swift disbursal. For a completely hassle-free borrowing experience, simply check your pre-approved offer today!