September 29, 2018
How an MSME Loan Will Help You Grow Your Small Business
Mr. Murari Lal Bansal, a resident of Chandni Chowk, Delhi was an owner of an MSME enterprise. His business was going good for the last 2 years. As his business flourished with time, so the need to expand it and bulk orders from clients also increased.
For leasing out a big space to expand his business operations and to receive bulk orders from clients, he needed a big amount of money of around Rs.20 lakh. Since he had no other sources of money, he thought it would be good to sell his ancestral home, liquidate it and use the funds in the business.
On the other hand, he was also aware that liquidating his ancestral home was not a good idea in the long-run. That’s when one of this friends advised him to avail an MSME loan from a leading lender of up to Rs.30 at lower rate and longer tenor.
If you are an MSME business owner and needing to expand his/her business and for that, if you are thinking to liquidate any of your assets, MSME finance is a good idea.
What is MSME loan?
If you have Micro, Small, and Medium Enterprises (MSMEs), you may avail an MSME loan from any of the leading online lenders and borrow up to Rs.30 lakh.
These loans are popular amongst small business owners as they are available at lower rates and extended tenor so that you can repay smaller EMIs.
Why an MSME loan is a good idea to give wings to your business?
1) Finance up to Rs.30 lakh
When you can avail up to Rs.30 lakh for your business needs, you can easily focus on your business and take it in the right direction.
2) Flexi loan feature
When you avail an MSME loan from a leading lender, you also get the flexi loan facility in which you can easily borrow an amount as per your needs from the total limit. You can enjoy the benefit of paying just the interest as EMI on the used amount and nothing more. The rest of the money is adjusted at the end of the loan tenor.
3) Faster processing
Since the MSME loan is a collateral free loan facility, you can enjoy a faster processing of the loan which means your loan application is processed within 24 hours. As a result, when your loan is processed fast, you also get the money disbursement quick.
4) Wider tenor to suit your needs
You can focus on your MSME business and not bother about the loan repayment as you can seize a wider tenor ranging from 1 year and 5 years. Hence, you can pay smaller EMIs over a longer tenor and focus on your business and not the repayment.
5) Online account management
Availing an MSME loan from a reputed lender can let you access the loan information right via the digital customer portal. It lets you track the progress of your loan right from anywhere and 24/7.
MSME loan eligibility
For availing the MSME loan, you will need to fulfil some standard MSME loan eligibility of the lenders such as:
* Applicant should be under 25-55 years
* Your MSME business should have a history of 3 years and more
* You should have filed the Income Tax Return (ITR) on behalf of your business during the last 1 year
The Bottom Line
Don’t think to liquidate your assets or take credit from your relatives when you have an MSME loan to help you cover your entire small business needs. You can apply for the MSME loan online and get started.