Home / Brand Post / MSME loans emerging as one of the preferred lending options for entrepreneurs

Micro, Small & Medium Enterprises (MSMEs) contribute to almost a third of India’s total GDP and employ a large section of the population. MSMEs are therefore vital to the country’s economic growth. And with new technology opening up more avenues in the MSME sector, entrepreneurs today have a lot of opportunities to look forward to.

As the pandemic-hit economy moves back to normalcy, a key factor that can help MSMEs leverage these opportunities is the availability of financing. Small and medium enterprises need funds to buy equipment, refill inventory, expand operations, increase working capital and more. To help those in the MSME space get access to funds, lenders are offering MSME loans.

What is an MSME loan?

An MSME loan is a personalised financial instrument useful in fulfilling the varied needs of small enterprise. It is a kind of financing that is easy to avail of and can help you grow your business.

Here are some reasons that make an MSME loan a popular financing solution for entrepreneurs today:

1. An ideal solution to meet big expenditures: An MSME loan is a financing option designed to help entrepreneurs to meet their expenses in a hassle-free manner. Lenders today offer high-value loans that come with easy-to-meet eligibility criteria. You are not required to pledge any security and you can use the money for any business expense.

For instance, consider the MSME loan offered by Bajaj Finserv. The non-banking finance company (NBFC) offers collateral-free MSME loans up to Rs.45 lakh at an attractive rate of interest. Since it is an unsecured loan, you can avail funds without pledging any asset as security.

2. It comes with a short processing cycle: Timing is a crucial factor, especially during an unforeseen event where you may need funds immediately. An MSME loan is a handy solution as it comes with quick approval and requires only a handful of documents.

3. Flexible tenure to ease the repayment: One of the major deciding factors for an applicant before availing a loan is the convenience of repayment. A comfortable repayment tenure helps borrowers in managing the debt in a better way without defaulting on it. With MSME loans, you can enjoy a flexible repayment tenure and plan your finances smartly without creating a dent in your pocket.

4. Attractive rate of interest: Rate of interest plays an important role when you choose to apply for a loan. It is an important factor that determines your overall cost of loan as well as the monthly instalment. The amount of the monthly instalment is determined by the rate of interest as well as the principal, therefore it is important to avail a loan at a lower rate of interest for affordable EMIs. An MSME loan usually comes with a competitive rate of interest that is suitable for small entrepreneurs.

The MSME loan offered by Bajaj Finserv comes with the unique Flexi loan facility in which you can opt for interest-only EMIs and reduce your monthly instalment by up to 45%*. It also lets you withdraw flexibly as per your requirement from the sanctioned loan limit with interest charged only on the withdrawn amount.

Minimal paperwork, approval in 24 hours*, and easy repayment options make an MSME loan the ideal choice for business owners today. Check your MSME loan offer from Bajaj Finserv and manage the expenses of your venture with an MSME loan today.

Disclaimer: This content is distributed by Bajaj Finserv. No HT journalist is involved in creation of this content.

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