Small and medium-sized companies are frequently recognised, as the main motors behind the growth and evolution of various kinds of business in the nation. Multiple analysis and surveys have stated that there are somewhat around 43 million SMEs solely in India and the number is 36.2 million in MSMEs- thus, playing a significant role in building the economy stronger.

However, it’s the lack of proper funding hinders business irrespective of the sector. Getting hold of a MSME loans is the best solution in such cash crunch situations, read on to know more:

• Unsecured loan

Most of the time, SMEs depend on internal funding, or cash from relatives & friends to start their company or to develop their business with the changing marketing standards.  Well not anymore, financial institutions like Bajaj Finserv provide loan to applicants so that they can fulfil their requirements.

MSME loan scheme in unsecured type is as follows – the demanded-amount is given, to the borrower and, there no provision for collateral in this type.

• The interest rates

Any other form of a loan, like for example personal loans– are heavily charged, with huge-interest amounts while, acquiring an MSME loan comes with privileges like low-interest rates, flexible mode of (EMI) payment and many more.

Check MSME full form here.

Thus before putting the application for a loan, it’s best to check the on-going interest rates in that bank and compare with others.  Other than that, SME or MSME type loan allows an individual to get hold of a higher amount than what received in other loan types.

Additional Read: What Interest Rates are Good for Your Small Business Finance?