Thursday, September 29, 2022

5 Most Popular Lenders to Avail MSME Loan

MSME Loans stands for Micro, Small, and Medium Enterprise Loans. An entrepreneur or owner of a business can avail of these types of loans. These loans give you working capital that you can put to use in your business. There are multiple lenders in India offering a business loan in Delhi. Interest rates also vary from bank to bank.

Yes Bank

Small businesses can get loans from Yes Bank through programs such as the Guaranteed Emergency Credit Line for MSMEs, Smart Edge, Smart Overdraft, and Cash Backed Lending Program. GECL is an msme loan for which NCGTC would provide a 100 percent guarantee to the bank. It will be provided in the form of additional working capital term loans to eligible MSMEs.

Smart Edge provides MSMEs with easy access to financing for their working capital and other business needs. Scorecard-linked assessment models determine the credit limits offered, ranging from Rs 1 crore to Rs 3 crore.

A smart overdraft allows manufacturing and trading MSMEs to obtain working capital up to Rs 1 crore without a balance sheet.

A Cash-Backed Lending Programme is a non-fund-based scheme consisting of a Letter of Credit, Buyer’s Credit, and Bank Guarantee. For Supplier‘s Credit LC, the period is 180 days or up to three years. The Bank Guarantee period is 36 months. As a result, the Letter Of Undertaking is valid for up to one year when arranging BC for non-capital goods and three years when arranging BC for capital goods.

Bank of Baroda

The Bank of Baroda is an important institution for financing the working capital requirements of SMEs.

The Baroda SME Loan Pack enables borrowers to meet their long-term and working capital requirements within the overall limits of the bank. Providing hassle-free credit for working capital and long-term requirements takes into account the nature of the business. Also, its cyclical trends, cash flow forecasts, peak-time requirements, and unforeseen surges in the business are considered.

SMEs are eligible for an MSME Capex Loan for capital expenditures related to their regular business operations.

SMEs Short Term Loan is designed to meet temporary shortfalls/mismatches in liquidity to meet genuine business needs. According to regulatory definitions, MSMEs and other entities with sales of more than Rs 150 crore per year can apply. Applicants must have had satisfactory credit ratings for the past three years.

The purpose of SME Medium Term Loans is to enhance enterprises’ working capital gap, improve the current ratio, and meet genuine business requirements. It will be possible to use the facility to repay secured and unsecured loans from other banks or institutions. It cannot be used for purposes unrelated to enterprises’ activities. The program is open to micro, small, and medium enterprises (MSME) as defined by regulation and all other entities with annual sales between Rs 1 crore and Rs 150 crore.

ICICI Bank

ICICI Bank offers MSMEs a range of customized financial products and services to positively impact their bottom line. The bank offers SME loans as cash credit/overdrafts to meet working capital finance needs and export credit to provide pre-shipment and post-shipment financing. Besides providing Letters of Credit, it also provides term loans for business expansion and the purchase of commercial assets. Various collateral options are available for these loans, including residential, commercial, industrial property, and liquid assets.

ICICI Bank offers collateral-free cash credit and term loans up to Rs 2 crore without collateral. This is done under the MSMED Act, 2006, as part of the CGTMSE loan scheme of SIDBI and the Ministry of Small and Medium Enterprises. In addition, ICICI Bank offers other types of loans, including working capital loans, term loans, and GST business loans.

HDFC Bank

HDFC Bank provides business loans, term loans, and working capital loans to small businesses. With a dedicated relationship manager and doorstep service, the bank deals with SME working capital requirements under Cash Credit Overdraft, Term Loans, Letters of Credit, Bank Guarantees, Packing Credits, Post Shipment Finance, and Bill Discounting.

As part of its business loan offers, the bank offers loans up to Rs 50 lakhs, waivers of collateral and guarantors, and even balance transfers. It also offers special business loan in Delhi features such as overdraft facilities and flexible repayment terms. For capital expenditure, fixed assets, and expansion of businesses, term loans are provided up to five-year tenure. HDFC Bank also offers short-term financing options specially tailored for SMEs. Repayments are scheduled to correspond with the cash flow of the business.

Bank of India

The Bank of India provides financial assistance to small businesses under specific schemes. CLCS-TU Scheme, Star MSME E-Rickshaw, Star MSME GST Plus Scheme, Star Weaver MUDRA Scheme, Star SME Education Plus, Star Start-Up Scheme, and several more. Also provided by the bank are government-sponsored schemes such as Stand Up India, Pradhan Mantri Mudra Yojana (PMMY), Weavers Mudra Scheme, Cluster Financing, and more.

Deeksha Arora
Deeksha Arorahttps://gentlewit.com
I work as a content writer with Gentle Wit blog. I love to write articles on art, nature and lifestyle niche. My hobbies are to listen podcasts and read inspirational books.

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