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Avail our MSME Loan for Business Finance

An MSME business loan at a competitive interest rate can help in growing your business fast. Now there are banks and financial institutes like Aavas which offer easy small business loans. The online process to apply for an MSME loan for business in 2021 is simple but before applying it is always recommended to check your MSME new business loan eligibility. You can use the online Loan Eligibility Calculator to find out your loan eligibility status and apply online as well. Because once you know the loan amount then whether you are starting a new business or expanding your existing business, you will be able to do a better planning.

Features of Aavas MSME business loan

  • You can use this for business expansion, purchase of equipment, working capital, etc.
  • The interest rates on MSME Business loan starts at 14% p.a
  • Tenure of up to 15 years
  • Integrated branch network that facilitates loan servicing at a branch convenient to you.

Aavas MSME new business loan Clients Experience:

To expand my Kurti business I needed some cash and I approached Aavas for MSME business loan. The sanctioned loan amount has not only helped me in expanding my business but also brought financial stability to my life. The loan process was simple and convenient

Moni Ben from Gujarat

MSME loan still remains one of the tried and tested options to get the funds to expand your business in 2021. It even takes your MSME unit to the next level.

In fact, the online process has also made it remarkably simple to apply for MSME loans

Even during this pandemic, one can apply for the MSME loan from the safety and comfort of one’s home. The online loan process, apart from being convenient, is faster too. You will be amazed with the simplicity carried by the entire process. Just login to have a 'white glove' experience!

MSME loan FAQs

Why Should You Take MSME business loan?

MSME business loan will empower you to grow and take your MSME venture to the next level. In fact, there are various government schemes as well, which have an aim to encourage small businesses to grow at a rapid pace. And if you can get MSME loan with these available government schemes then you will fast-track your small venture.

What are the documents required for MSME loan?

The following documents are required for an MSME loan for business-

  • Id proof- Driving License, Passport, Voter Id card OR PAN card, Aadhar card
  • Residence proof- Driving License, Passport, Voter Id card OR Ration card, Aadhar card, Electricity bill, Water bill
  • Financial documents- Last two years ITR, Balance Sheet of the firm OR Profit and Loss statements, Last 6 months bank statements
  • Business proof- Registration certificate, Certificates of business existence OR Memorandum and Articles of Association
  • How to apply for an SME/MSME loan?

    Fill out your details on "Apply for MSME Loan" form. You are done. Our representatives will get in touch with you for your MSME loan requirement, and it will be disbursed soon with minimum paperwork involved.

    How long does it take to get an MSME business loan?

    If your documents and profile is eligible, then the minimum time to get an MSME loan for business is 7-10 days to process your application. But in cases of applications asking for a huge amount of money may take more than the usual clearance time.

    Is credit score (CIBIL) important in getting MSME business loan?

    Yes, credit score/CIBIL score is important for getting an MSME loan as a good CIBIL score let the lenders take faster decisions for approval of the applicant's loan request. As the company's CIBIL rank is near 1, the better are the chances of getting approval for the loan.

    How much MSME loan for business can I get?

    An applicant can get a loan of 50,000- 10 lakhs depending on the size of the business. Different institutions have a different capacity of providing different amounts to the various applicants. You need to mention the required amount at the time of filling up the application form.

    What determine my MSME loan limit, and how can I increase it?

    Your credit score, your income, your age and the nature of your work are the prime factors in determining the size of your loan. Settling your previous debts and improving your credit score may help you immensely in building a better credit score.

    What is the lowest rate of interest for MSME loans for new business?

    The lowest rate of interest for MSME loans varies from bank to bank or financial institution. It is recommended that you check for a low interest rate while applying for MSME loan.

    Can I get MSME Loan for my warehouse?

    Yes, if you are ready to give the self-occupied property evidence. Self-occupied residence property mortgage is also required.

    Can I get an MSME Loan for GPA registered property and how much loan amount can I avail?

    Yes, the loan amount will depend on the valuation of the property. You need Self Occupied Residential Property (SORP) for the same.

    Is it mandatory to mortgage commercial property for an MSME loan or, can residential property also be considered as mortgage?

    Yes, residential property mortgage is a must even if you are ready to give commercial property as additional collateral.

    Can I also get MSME Loan on industrial property?

    Yes, in case the customer is mortgaging his residential property too for rechecking.

    Can I get an MSME loan for commercial property construction?

    Yes, if evidence of self-occupied and self-commercial use is specified.

    As a customer, if I have a GST, then is it mandatory to take Udyam Adhar License?

    Yes, it must be taken even if the customer has GST.

    Related Blogs

    Aavas Blog

    Are you one of those ambitious and enthusiastic persons eager to launch a business startup or an MSME unit? Is your head brimming with new business ideas? If you thought that your lack of business experience might throw a monkey wrench into your plans, you needn’t worry too much. Well, these five actions can make you successful in a new business sans any prior experience.

    Do The Home Work
    Always remember that the nitty gritty of starting a new business venture requires meticulous planning, commitment and hard work. One has to put his nose to the grindstone to get the business off the ground.

    It has been seen that a majority of startups falls through the cracks for multiple reasons, and ineffective planning and unrealistic business goals are among these. So, one should be extremely careful about the venture one is planning to start.

    It becomes important that one navigates the choppy waters of a new business with confidence. First, do the planning, and come up with a realistic business plan that you feel you can achieve given your limited resources and inexperience.

    The Learning
    It helps if you have done a business course because it would give you some guidance as to how one can set up a new business without any prior experience.

    Starting a new business is an audacious decision by all means. It shows that you are ready to take the plunge, come what may. After all, a budding entrepreneur would want to run his business for the long haul.

    Research Well
    Many young entrepreneurs open a similar company they have worked for previously. This gives them an added advantage because when they venture on opening their own business startup, they utilise their previous experience in taking it a couple of notches higher in terms of productivity and business goals.

    Whenever you decide to start your new venture, do a thorough research about its potential profitability in the market. Read  those journals which have a professional stance on business trends.

    Keep getting feedback from those who have adequate business knowledge and are capable of coming up with valuable suggestions regarding new ventures.

    Networking is another important aspect of business consolidation. On various online platforms, you can touch base with other entrepreneurs and seek their opinion on your business model. Don’t be surprised if opinions and suggestions fly thick and fast much to your advantage.
    There is no dearth of experienced business people who might proffer an opinion on how to run your startups smoothly. You may be lucky enough to find a suitable mentor who would be willing to financially help your new business venture.

    Have A Definitive Goal
    Develop some clear goals and strategies regarding finance. Then, set up the website followed by aggressive marketing.

    When you have taken care of these basic requirements, you need to make sure whether you require a proper office and staff to take things forward.

    Those who are starting their venture should set realistic business goals. Avoid getting carried away by thoughts of high profits and brand equity in the initial stages. Play for high stakes always, but be pragmatic in your plans.

    Calculate The Finances
    Once you decide to float your new business venture, factor in certain important things like budget, cash flow, growth plan, and the kind of services that you are planning to provide. And please ensure that you have some finance runway of nearly 6 months and MSME loan for business is one such option which you can avail. 
    An efficient workforce is the lifeblood of any successful company. So, once you float your new firm, look for expert and efficient people who can turn things around with their expertise and even experience. Intelligent and results-driven graduates with business degrees are an asset for such companies.

    Business is always rife with uncertainty and, like limited overs cricket, you never know what is going to happen the next moment. So, you always should have backup and support plan in place.

    Aavas Blog

    This year’s union budget was significant and important in more ways than one. After the pandemic cut a swathe through the economy, there were expectations that the startup and MSME (Micro, Small and Medium Enterprises) would get a shot in the arm, and rightly so. 

    The finance minister, in her third budget speech, didn’t disappoint and announced a slew of measures which are going to help the badly battered MSMEs and startups recover lost ground.

    1. Allocation fund to MSMEs doubled

    This year’s first digital budget focused on small businesses with respect to ease of doing businesses and the insolvency process. The heartening aspect of this year’s budget is that it has relaxed norms around setting up businesses and incentivising funding for startups. The budget has also shown considerable flexibility by doubling the allocation to MSMEs to Rs 15,700 crore for the next financial year. The budgetary allocation for the MSME sector for 2020-21 was Rs 7,572 crore. 

    1. Emergency Credit Line Guarantee Scheme a major boost

    An interesting aspect of this budget is that the bulk of allocation for 2021-2022 has been earmarked for the Emergency Credit Line Guarantee Scheme (ECLGS). The scheme has turned out to be a real boon for MSMEs, which found itself tussling with numerous challenges like liquidity crisis, shortage of labour and non-payment of dues triggered by the Covid-19 pandemic. So much so that till November 12, 2020, Rs 2.05 lakh crore of loans was sanctioned to 61 lakh borrowers under this scheme. This scheme has helped revive the sagging fortunes of MSMEs in a big way in the last few months.

    1. Encouraging skill development programme

    The government wants to make sure that not only MSME business loan is easily available but even entrepreneurship and skill development programmes for the MSMEs get higher allocation so that they can hit the ground running. In a commendable move, the government has proposed to allocate Rs 300 crore towards the establishment of new technology centres for the MSME units. Meanwhile, the Federation of Indian Micro and Small & Medium Enterprises (FISME), feels that the reduction in customs duties on steel and ferrous and non-ferrous scrap will do a world of good to the MSMEs as it will help considerably reduce the raw material prices. In fact, FISME has for quite some time been making a pitch for a reduction in raw material prices.

    This year’s budget has seen major announcements like strengthening of NCLT (National Company Law Tribunal) framework, implementation of e-courts system, a special framework for MSMEs, besides introduction of alternate methods of debt resolution. These steps would give a substantial boost to MSMEs in the coming days. 

    1. Covid-19 related debt excluded from the definition of default

    It needs to be mentioned that the strengthening of NCLT framework would definitely bring relief to cash starved firms that bore the brunt of the pandemic. The government has already made it clear that Covid-19-related debt would be excluded from the category of default. In an effort to insulate small businesses from being dragged to the NCLT, the government has decided to raise default threshold for triggering insolvency to Rs 1 crore from just Rs 1 lakh earlier.

    1. Norms for setting up OPCs eased

    In order to encourage entrepreneurial spirit and benefit startups in setting up one person companies (OPCs), the finance minister has said that OPCs would grow without any restrictions on paid-up capital and turnover. According to the minister, the OPC can be converted into any other type of company at any time. The reduction in residency limit has also been announced according to which an Indian citizen can set up an OPC within 120 days instead of the initially approved 182 days; besides it will also allow NRIs to incorporate OPCs in India. Please note OPC can already apply for MSME business loan online 

    1. Tax holidays for start-ups extended by a year

    In a major post-pandemic boost, the 2021 budget has proposed an extension of eligibility for claiming tax holidays for startups along with the capital gains exemption for investment in startups till March 31, 2022, to incentivize funding. 



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