The number of MSMEs in India crossed 6.3 crore in India in 2020. Nonetheless, the shortage of funds to mitigate various expenses can often prove to be a real challenge for small business owners. To bridge this financial gap, several lending institutions of the country offer MSME loans that cater to businesses’ unique financial needs.
Before opting to apply for MSME loan, it becomes imperative for business owners to know its benefits in detail.
One of the biggest perks of availing a business loan for MSME is that individuals can use the funds for various purposes, including scaling the business and improving its cash flow.
Another benefit of opting for an MSME loan is it accompanies a flexible tenor of up 84 months, allowing business owners to choose one that fits their repayment capacity. The interest rate of this fund is also affordable, and select NBFCs also offer this fund against a competitive interest rate.
You need to fulfill only a few eligibility requirements to avail of this fund. For instance, your business vintage should be a minimum of 3 years, and the credit score should be 750 and above.
Eligible borrowers only have to submit some relevant documents like trade license, KYC, ITR documents, business PAN card, etc., to get an MSME loan. You can also get a Bajaj Finserv loan at low-interest rates.