How to get a loan for MSME

Posted on Monday, May 29th, 2023 | By Indusind Bank

Starting and running a successful MSME (Micro, Small and Medium Enterprises) business requires more than just a great idea. A crucial component of long-term success is managing finances effectively. Adequate financing is essential for a MSME business to sustain operations, invest in growth and stay ahead of the competition. 

However, despite the best efforts, sometimes MSME businesses may need urgent capital to meet unexpected expenses such as buying new equipment, hiring employees or managing cash flow during a slow business period. That’s where business loans come in handy. 

Business Loan Checklist 

If you are considering applying for a business loan, here’s a quick checklist to ensure that you have everything you need before you begin: 
 
1. A well-documented business plan that clearly outlines the purpose of the loan and how the funds will be utilized. 
2. A strong credit score that shows your ability to repay the loan. 
3. A list of collateral that you can offer to secure the loan. 
4. Financial statements, tax returns, and bank statements that show your financial stability and ability to repay the loan. 

Once you have these in place, you can follow these 5 broad steps to apply for an MSME loan: 
 
Step 1: Research and Compare: Research various lenders and compare the terms, interest rates, and eligibility criteria to find the best fit for your business. 
 
Step 2: Documentation: Prepare the necessary documentation required by the lender, such as your business plan, financial statements, tax returns, and bank statements. 
 
Step 3: Application: Fill out the application form and submit it along with the necessary documents. 
 
Step 4: Approval: The lender will review your application and documents, and if everything is in order, they will approve the loan. 
 
Step 5: Disbursement: Once the loan is approved, the funds will be disbursed to your account. 

Business loans are a popular choice among MSME business owners to meet their urgent capital requirements. With the availability of various options, selecting the right loan product can be a daunting task. However, IndusInd Bank’s MSME loans offer the perfect solution for those looking for hassle-free, quick and flexible financing options. 

IndusInd Bank business loans come with several benefits that make it an ideal choice for business owners. One of the key features of these loans is the minimum documentation requirement.

Another major benefit of IndusInd Bank’s MSME loans is the instant disbursal of funds. Once the loan is approved, the loan amount is disbursed within a few hours, providing immediate access to funds for urgent business requirements. Additionally, the tenure of the loan is also flexible so that business owners can choose a repayment period that suits their business needs. This helps businesses plan their finances and manage their cash flow more effectively. 

In addition to this, IndusInd Bank also offers small-ticket business loans that are collateral-free, with loan amounts up to Rs. 20 lakh. These loans are approved within 10 minutes, making it the perfect choice for businesses that require quick financing. These loans can be used for a range of business requirements, such as purchasing inventory, upgrading technology, or hiring new employees. 

For those who need smaller funds, IndusInd Bank’s overdraft facility, available through their current account, is a great option. This facility provides businesses with access to additional funds when they need it, without having to go through the lengthy process of applying for a new loan. This is especially useful for businesses that need to manage their working capital requirements efficiently. IndusInd Bank Current Account come with other additional benefits as well. These include: 

• Convenient and hassle-free 100% digital account opening process  
• Industry-specific current accounts that cater to various sectors including IT/ITes, agro, textile, telecom, shipping, import & export, and more.  
• Flexible cash deposit limits that can be adjusted to the changing requirements of your business.  
• Premium doorstep banking services, such as cheque pickups and on-call cash pickups that gives you more time to focus on your business growth.
• The option to choose your own account number! 

So why wait? Switch to the IndusInd Bank Current Account today and experience banking like never before! OPEN NOW 

Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision.  IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.