Micro businesses encompassing small production units and rendering services can opt for the MSME loan. They can avail the loan either to start a new micro business or strengthen existing business. MSME loans are especially suited to women working in varied businesses such as catering, wellness, grooming, day care centres, flower shops and tailoring.
Any entrepreneur intending to start a small or medium enterprise is eligible for SME loans. An entrepreneur already running a small or medium business is also eligible for SME loans to finance any improvements needed for the enterprise to improve its business.
If you are above 25 years and below 65 years of age you are eligible for an MSME Loan if your business,
- Is profitable for three previous years
- Is stable and growing
- Is filing ITR
MSMEs can avail a business loan amount above Rs 3 lakhs and up to Rs 50 lakhs if they can show income and ability to repay. The loan tenure is between 12 and 36 months.