The meaning of MSME Loans is the loan given to small-scale businesses or start-ups to establish their business or to expand it further. In India, the future of economic growth is heavily dependent on the lakhs of small and medium-scale businesses trying to thrive in a very competitive market.
Here are some things to know about MSME loans:
· Eligibility: MSME loans are available to individuals and entities that meet certain criteria, including age, educational qualifications, and project cost.
· Loan amount: There is no minimum limit, but the maximum is usually around Rs. 2 crores for unsecured loans.
· Repayment: The repayment period can range from 12 months to 5 years, but may be longer depending on the business's needs.
· Collateral: Unsecured loans do not require collateral or security.
· Processing fee: The processing fee can range from nothing to 4% of the loan amount.
· Foreclosure charges: Foreclosure charges can range from nothing to 5% of the outstanding principal amount.
· Part-payment charges: Part-payment charges can range from nothing to 4% of the outstanding principal amount.
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