MSME Loan / SME Loan

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MSME Loan / SME Loan

A loan offered to an SME or a company registered as a Small and Medium Enterprise is commonly referred to as an SME Loan. On the other hand, an MSME Loan is sought by a company registered under Micro, Small and Medium Enterprises. Fullerton India provides loans in both these categories to businesses who are looking to expand their operations by purchasing machinery, equipment and raw material, to invest in fixed assets or even to meet their requirements for working capital.

Based on the loan application, Fullerton India can provide a loan of up to Rs. 50 lakhs* to both SMEs and MSMEs without seeking any collateral at competitive interest rates. Our loan solutions are designed to be flexible to meet the needs of our varied client base.

SME / MSME Loan Interest Rates

SME Loan Interest Rate: Depending on various factors such as location, net income, business stability, collaterals, existing monthly obligations, etc., the SME loan interest rate can vary between 17% to 21%. If the borrower owns a business and is a self-employed individual, Fullerton India offers personal loans for self-employed at interest rates starting from 11.99%.
MSME Loan Interest Rate: The MSME loan interest rate can be anywhere between 17% to 21% based on a number of parameters like nature of business, industry type, number of years in existence, financials, and so on.

Eligibility Criteria for SME / MSME Loan

You can determine your SME and MSME loan eligibility on the Fullerton India website. Common criteria include:

Age Criteria: Minimum 22 years at the time of application and Maximum 65 years of loan maturity
In case of Individuals: Individuals who have been engaged in the current business for at least three years with a total of five years of business experience.
Company Type: Self-employed individuals, proprietors, private limited companies, and partnership firms working in manufacturing, trading, or services.
Business Turnover: At least Rs. 10 lakhs per year
Business Vintage: Minimum 2 years in profit
Business with a Minimal Annual Income (ITR) of Rs. 2 lakhs per year

You can also calculate your loan eligibility by using our business loan eligibility calculator.

Documents Required for MSME / SME Loan

Here is a list of documents required for an MSME loan and an SME loan from Fullerton India:

A photograph that is not older than 6 months
Proof of Identity - PAN card for the business as well as the applicant will have to be provided
Valid address proof of the business (such as business registration certificate) as well as the applicant (Aadhaar card, passport copy, etc)
Bank and income statements for the last 6 months along with Form 16
Income Tax or GST Returns for the last 2 years with an audited income summary
Your financial statements with a declaration of cash profits for the last 2 years along with annual turnover demonstrating a positive trend in the current financial year
Proof of Business existence (like Certificate of Incorporation, etc.)

To make the lending process effortless, we strive to provide loans with minimal documentation.

How to Apply for SME / MSME Loan?

At Fullerton India, you can apply for an SME and MSME loan by visiting your nearest branch office or through the convenience of our website.

If you wish to apply for the loan online, follow these easy steps:

Fill in Your Application: Your application form can be filled and submitted online. Make sure that you’ve submitted all relevant personal, professional and financial details accurately, to the best of your knowledge.
When your application is received by Fullerton India, a representative from the appropriate department will get in touch with you within a designated timeline. All possible loan options will be discussed at this stage, along with best interest rates, EMIs and loan tenures.
Document Upload: Once your pre-assessment and eligibility by Fullerton India have been confirmed, you can proceed with the document upload process. This can be done completely online. You can also request doorstep pickup service at a convenient time, and our representative will collect the documents from you.
After the document submission is complete, the relevant team at Fullerton India will review them for verification.
Loan Disbursal: Upon successful verification, once Fullerton India approves your loan request, we will share the loan agreement with you. This outlines all the terms and conditions of the loan along with interest rates and loan repayment tenure. Once you sign and the document is received by Fullerton India, the funds are generally dispersed within 24 hours to your bank account.

Why opt for Fullerton India’s SME Loans?

Transparent and Fast-tracked Loan Disbursement Procedures
We try to keep our SME loan procedures transparent so that customers can make an informed decision. We provide easy online access to various tools to check your eligibility and loan application requirements such as our business loan eligibility calculator, EMI calculator, and documentation list. For SME funding requirements up to 50 lakhs, we offer affordable and competitive interest rates and aim for easy and fast-tracked disbursements of collateral-free loans.
Flexibility in Loan Repayment
We offer ample flexibility to our customers with respect to the repayment schedule. You may schedule your loan repayment with us, anywhere between 12 – 60 months, based on your receivables. Similarly, if you want an early settlement of your loan, we offer fore-closure options without extra charges*.
Online SME Loan Processing
Applying for SME loans at Fullerton has been made quicker through the online application procedures. Based on your eligibility, desired tenure and loan amount with the relevant documentation, we provide you with a customized offer with the best available interest rates and terms.

*Subject to terms and conditions

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FAQs

What is an SME?

According to the definition laid down by the regulatory authorities, certain companies are classified as small or medium enterprises in the manufacturing and service sector. These industries are further subdivided based on the amount capital invested and the turnover they generate. For an enterprise to be classified as a small enterprise, an enterprise should have an investment not more than Rs. 10 crores and a turnover not more than Rs. 50 crores. A medium enterprise should have investments not more than Rs. 50 crores and a turnover not more than Rs. 250 crores.

What is MSME?

The MSME full form is – Micro, Small and Medium Enterprises. MSME entities are set up under the Micro, Small & Medium Enterprises Development (MSMED) Act, 2006 and have contributed greatly to India’s economy and have been rightly considered as its backbone. MSME’s are engaged in the production, manufacturing, processing or preservation of goods and commodities. They have resulted in the development of the backward and rural areas of the country, in increasing exports, promoting industrialization as well as generating employment opportunities.

What is an SME Loan?

SME loans can be best defined as the loans extended to SMEs to cater to their business requirements and provide the funding required for expansion, working capital and infrastructure/business development.

What is an MSME Loan?

MSME loan is financial support and benefit provided to the enterprises that fall within the criterion of MSME and have taken the registration for the same. This is a collateral-free loan that is given to MSME enterprises to provide support of finance, for building their infrastructure and others as per their specific needs.

What is the Rate of Interest on SME Loan?

Fullerton India offers SME loans with interest rates ranging anywhere between 17% to 21% considering several key parameters such as the business condition, any existing monthly obligations, business location, yearly net income and the loan application.

What is the Rate of Interest on MSME Loan?

The MSME loan interest rate varies between 17 – 21% and is based on customer type, cash flows, repayment plans, collaterals, credit history, loan tenure. The two types of interest rates on MSME / SME loans at Fullerton are –

Diminishing / Reducing Rate – Wherein the interest element in EMI reduces after each payment based on the outstanding amount
Flat Rate – A fixed amount of EMI payable till the end of tenure.

How the MSME Registration Beneficial to the Businessman?

MSME registration is beneficial to businessmen as they can get loans without collaterals, subsidies on patent registration and industrial promotion, overdraft facility with interest rate exemption, electricity bill concessions, reimbursement of ISO registration charges and protection from delayed payments from buyers.

If you are an existing customer of Fullerton India, you can also apply for MSME loans under the ECLGS Scheme.

* Terms and conditions apply
** Subject to foreclosure charges. Terms and conditions applicable.