Apply for SME/MSME Term Loan Online
MSMEs are the backbone of India’s economic growth. They create jobs, boost exports, and drive industrial growth, but timely finance often remains a hurdle. With My Mudra, you can access MSME loans that support working capital, machinery purchase, or business expansion. We connect you with trusted banks and NBFCs through a transparent platform, so you can compare and apply for MSME loan online.
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For Micro, Small & Medium Enterprises
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Working Capital, Machinery & Expansion Support
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Easy Online Application Process
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Compare & Apply with Trusted Lenders
Last Updated: 1 September 2025
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What is an MSME Loan?
An MSME loan or MSME term loan is a business loan which is used by enterprises registered as micro, small and medium under the MSMED Act 2006. It can help you manage operations and take your business to the next level. Traditional business loans can take weeks to process. The process of getting an MSME loan online is faster.
For instance, a small textile unit in Surat may need extra funds during the festival season. Instead of stopping production due to a lack of money, they can take an instant MSME loan and keep up with demand. Many lenders today provide customised MSME business loan options so that enterprises can choose terms that suit their business needs.
Types of MSME Term Loans
Different enterprises require funding for various purposes. Through My Mudra’s partner lenders, you can access:
- Working Capital Loans: You can meet daily operational expenses.
- Equipment Financing: They are for purchasing or upgrading machinery.
- Business Expansion Loans: This loan can help you grow your operations or set up new branches.
- Invoice Financing: You can cover gaps between raising invoices and receiving payments.
- Term Loans: For planned investments with fixed repayment schedules.
Note:
**With these choices, you can apply MSME loan online according to your business requirements and
select the type of MSME loan that best supports your growth.
Features & Benefits of MSME Loan
Swift Approval:
They have minimal paperwork and digital verification to ensure quick approval of applications.
Instant Disbursal:
Once approved, the funds are credited directly to your business account.
Collateral-Free:
Many lenders offer you MSME business loan options without security.
Flexible Repayment Period :
You can choose a repayment plan that fits your business earnings.
Affordable Interest Rates:
You can compare lenders and choose the most affordable option that fits your budget.
Easy Documentation:
Only the essential MSME loan required documents are needed. It can include GST, ITR or business proof.
Digital Application:
Seamlessly complete MSME loan registration online without visiting a bank branch.
MSME Business Loan Eligibility
Every lender sets basic conditions for MSME loan eligibility. Preparing for them in advance helps you improve the chances of getting approval.
- Age: Your age should be between 21 and 65 years.
- Business Type: Must be registered as an MSME under government norms.
- Turnover: It is usually up to ₹250 crore. It depends on the business category.
- Credit Score: Your credit score should be above 700. It gives you a better chance of approval.
- Business History: Depending on the lender, your business may need to be running for 1-3 years.
Note:
**The requirements may vary depending on the profile of the applicant.
MSME Loan Required Documents
Having the right MSME loan documents ready ensures faster approval and quicker disbursal. Check the list of commonly required MSME loan documents:
- KYC Documents: It can include your Aadhaar card, PAN, Voter's ID and Passport.
- Business Proof: Your GST certificates, Udyam Registration.
- Financial records: They include your bank statements, ITR and balance sheets.
- Address Proof: The electricity bill, rental agreement or ownership papers.
- Photographs: T Recent passport-sized photos of the applicant.
Having these ready helps in faster processing of MSME loan application requests online.
How to Apply for an MSME Loan Online?
MSME Loan Repayment Options
The MSME loan repayment options can be:
- Bullet Payment: In this method, you pay only the interest every month, while the entire principal is repaid as a lump sum at the end of the tenure. This option is available only to select borrowers.
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Equated Monthly Instalments (EMIs): EMIs consist of a fixed
monthly payment that includes both principal and interest. You can also manage your EMIs in the
following ways:
- Partial Prepayment: Pay more than your regular EMI to reduce the outstanding principal and lower future interest outgo.
- Foreclosure: Repay the entire outstanding loan amount in one go to close the loan early. This option usually involves charges, so it’s best to check the details before proceeding.
MSME Loan Interest Rates and Charges
Understanding MSME loan interest rates helps you choose the right MSME business loan with lower costs and better repayment flexibility.
Particulars |
Charges |
|---|---|
| Interest Rate | Starting from 9.5% per annum |
| Loan Amount | Up to ₹2 crore |
| Tenure |
1 to 7 years |
| Processing Fee | 0.5% - 3% of loan amount |
| Foreclosure Charges | 2% - 5% depending on lender |
Comparing multiple offers through My Mudra helps you pick the right plan. If you want to get an MSME loan at the best rate, checking all available options before you apply is always recommended.
Compare Online MSME Loans from Our Top Lenders
Selecting the right MSME loan is about comparing interest rate, tenure, and charges. My Mudra makes it easy by connecting you with top banks and NBFCs for the best deals.
| Top Banks | Interest Rate | Loan Amount |
|---|---|---|
| HDFC Bank Business Loan | Minimum 10.75% | Up to ₹50 lakhs |
| Axis Bank | Linked to prevailing Repo rate | Up to Rs 15 crore |
| SBI Bank | Minimum 7.50% p.a | Up to Rs 10 crore |
Common Mistakes to Avoid While Applying for an MSME Loan Online
Applying for an MSME loan is simple, but many business owners make avoidable mistakes:
- Ignoring MSME loan eligibility before applying.
- Submitting incomplete MSME loan required documents.
- Not calculating EMIs may cause repayment stress.
- Applying simultaneously with multiple lenders.
- Overlooking terms such as foreclosure charges.
Avoiding these mistakes can save you time. It can increase your chances of getting an approval. Whether you apply MSME loan online or offline, being prepared makes the process easier for you.
Why Choose My Mudra for MSME Term Loan?
At My Mudra, we do not provide loans directly. Instead, we act as a trusted bridge connecting you with 90+ banks and NBFCs to help you get an MSME loan that best fits your business needs.
Here’s why businesses prefer us:
- Multiple loan options to compare and choose from.
- Transparent process with no hidden charges.
- Quick and simple online application.
- Guidance from loan experts at every step.
- Assistance in MSME loan registration online for smooth processing.
Frequently Asked Questions About MSME Loans
Q1. What is the maximum loan amount you can get under an MSME loan?
Ans: Most banks and NBFCs can provide you with up to ₹2 crore. But the amount depends on turnover, repayment ability and overall profile.
Q2. How do I complete MSME loan registration?
Ans: You need to register your business on the Udyam portal. After that, you can proceed to apply for MSME loan through My Mudra’s partner lenders.
Q3. Do I always need collateral to get MSME loan?
Ans: Not always. Many banks and NBFCs offer instant MSME loan options without security.
Q4. What is the repayment period for MSME loans?
Ans: It usually ranges from 12 months to 7 years. It is based on the lender’s policy.
Q5. Can a start-up apply for MSME loan?
Ans: Yes. A start-up can apply MSME loan online if it meets basic eligibility criteria. You should also provide the necessary documents. It can be GST and business proof.
Instant Approval MSME Loan in Just a Few Clicks!
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