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MSE Business Loan

Unsecured Business Loan

Unsecured Business Loan

  • Customer segment Customer segment

    • Micro and Small Enterprises (defined by turnover criteria in eligibility grid) typically with annual sales turnovers in the range of

    • Manufacturing: `18,00,000 and above

    • Trading: `20,00,000 and above

    • Services: `15,00,000 and above

  • Loan amount Loan amount

    • Minimum `2,00,000

    • Maximum `3,00,000

  • Tenure Tenure

    • Minimum 1 year

    • Maximum 2 years

  • Rate of Interest (ROI) Rate of Interest (ROI)

    • 24% p.a. (reducing)

  • Charges Charges

    • Processing Fees : 2.25% of the loan amount plus taxes as applicable.

    • Bounce and Late Payment Charges : `250 for ECS/ACH/Cheque bounce, taxes as applicable. Penal interest of 2.5% p.m. on the overdue amount will be applicable on number of days delay from due date.

    • Pre-Closure Charges : Before completion of 12 months from the date of disbursement - 5% on principal outstanding, plus taxes as applicable. After completion of 12 months from the date of disbursement: 3% of the principal outstanding, plus taxes as applicable.



Loan types and purpose

Loan purpose Typical use
Working Capital
  • Purchase of stock (raw material and finished goods)
  • Payment to creditors
  • Financing of debtors
  • For keeping cash to meet day to day operating expenses
  • Short term debt repayment
Capital Expenditure
  • Purchase of new or old equipment

  • Investing in purchase or renovation of office/factory/godown or other business premises

Debit consolidation
  • Consolidating different short term loans taken for business purpose

Unsecured and Secured Enterprise Loan

Features Unsecured Enterprise Loans Secured Enterprise Loans
Processing Fees:

2% of the loan amount plus taxes as applicable.

1% of the loan amount plus taxes as applicable.

Bounce and Late Payment Charges:

`250 for ECS/ACH/Cheque bounce, taxes as applicable. Penal interest of 2.5% p.m. on the overdue amount will be applicable on number of days delay from due date.

`250 for ECS/ACH/Cheque bounce, taxes as applicable. Penal interest of 2.5% p.m. on the overdue amount will be applicable on number of days delay from due date.

Pre-Closure Charges:

Before completion of 12 months from the date of disbursement - 5% on principal outstanding, plus taxes as applicable. After completion of 12 months from the date of disbursement: 3% of the principal outstanding, plus taxes as applicable.

Before completion of 12 months from the date of disbursement - 5% on principal outstanding, plus taxes as applicable. After completion of 12 months from the date of disbursement: 3% of the principal outstanding, plus taxes as applicable.

Customer Segment
  • Registered Micro and Small Enterprises (defined by turnover criteria in eligibility grid) typically with annual sales turnovers in the range of

  • Manufacturing: `35,00,000 and above

  • Trading: `40,00,000 and above

  • Services: `20,00,000 and above

Loan purpose Typical use (indicative)
Loan types and purpose(term loan repayable in EMIS) Working Capital
  • Purchase of stock (raw material and finished goods)

  • Payment to creditors

  • Financing of debtors

  • For keeping cash to meet day to day operating expenses

Capital Expenditure
  • Purchase of new or old equipment

  • Investing in purchase or renovation of office/factory/godown or other business premises

Debit consolidation
  • Consolidating different short term loans taken for business purpose

Loan amount (given in multiples of `10,000 in the following range)

Minimum `3,00,000

Maximum `7,50,000

Minimum `10,00,000

Maximum `50,00,000

Tenure

Minimum (12 months)

Maximum (36 months)

Minimum 3 years (36 months)

Maximum 10 years (120 months)

Rate of Interest (ROI)

21-23% p.a. reducing

14-17% p.a. reducing

Overdraft facility

Overdraft Facility

  • Customer segment Customer segment

    • Micro and Small Enterprises (defined by turnover criteria in eligibility grid) typically with annual sales turnovers in the range of

    • For MSE businesses with annual turnover of `50 lakh and above

  • Loan amount Loan amount

    • Minimum `11 lakhs

    • Maximum `50 lakhs

  • Tenure Tenure

    • OD limit will be annually renewable unless specified otherwise

  • Rate of Interest (ROI) Rate of Interest (ROI)

    • 13-16% p.a. (Linked to 1 year T-Bill rates)

  • Features Features

    • Pay interest only on utilized limit

    • Option to combine MSE Loan with Overdraft facility

    • Quick processing

    • Priority services at branches

  • Charges Charges

    • Processing Fees : 1% of the facility amount plus taxes as applicable.

    • Interest Overdue Charges : If interest not paid within 7 days of the calendar month, additional 3% interest will be charged on the interest overdue amount above the existing rate of interest.



Timeline for decision of MSE loan is within 30 days from the date of the application.

Stamp duty charges are applicable as per state by-laws.

For all other charges, please contact your nearest MSE branch.