The A-Z of Getting A MSME Business Loan in India

September 22, 2023
Updated on

MSME loans are for entrepreneurs looking for funds to grow their business by expanding the inventory, buying new machinery, or opening another branch. Today, many financial institutes and banks offer this kind of loan to support and help small or medium-sized businesses expand and grow. You can opt for these loans in order to maintain a stable working capital that is essential for any business to carry out important business functions, pay the employees, hire new talent, purchase new inventory, renovate your space or expand your business. 

In a developing country like India, MSME businesses are essential for the economy. However, not many banks in India offer MSME business loans to small companies that need financial support. In such cases, you can reach out to social enterprises like Kinara Capital who give out business loans to small businesses without any collateral. 

To help you understand more about how MSME business loans, here is everything that you need to know about them. 

Here are some important questions that you must ask before opting for an MSME business loan:

1. What's the need for an MSME business loan? 

  • Lowered opportunities for growth capital
  • Cash flow problems
  • Reduced trades
  • Overdue payments
  • Labour shortage due to migration

2. How can an MSME business loan help? 

  • It can help you boost your small company, whether you're upgrading your MSME or you want to make operational changes.
  • In case you run out of funds, small business loans are the quickest alternative.
  • You can apply for an MSME business loan to increase your cash flow or to buy costly assets. 
  • Easier loan process as compared to banks. 
  • NBFCs offer different forms of loans, varying from machinery purchase loans to loans for working capital for you to choose accordingly. 

3. What are the loan schemes and products available for MSMEs? 


  • Raw Materials/Stock/Inventory purchase 
  • Business area renovation or redecoration
  • Dealer payments/Generic Business Expenses
  • Product or Market Growth
  • Machinery Restoration

ASSET PURCHASE LOANS (Manufacturing only):

  • Acquire New assets and machines
  • Second-hand Machine Acquisition
  • Interest Rate starting at 24% per annum, on a reducing rate basis with a loan tenure of 12-60 months

Grow your MSME with collateral-free business loans

4. What are the advantages that Kinara Capital offers MSMEs? 

  • It has a  flexible loan process that requires bare minimum paperwork.
  • The loan is processed not just on the basis of the credit scores.
  • The turnaround time for loan disbursement is just 1-day. 
  • A well-regulated process that is carried out efficiently with technology speeds up the procedure of loan disbursal.
  • Provides business loans without any collateral.
  • Pleasant doorstep customer services.

5. What are the eligibility parameters for women entrepreneurs for getting this loan? 

  • The manufacturing business needs to be established for at least 12 months at the time of the application.
  • Trading and services-related businesses must be formed for a minimum of 24 months.
  • The business must have a turnover of at least INR 50,000.
  • The loan amount requested should be between INR 50,000 and INR 30,00,000.

6. From Where To take MSME Business Loans? 

Small and medium-sized businesses no longer need to depend on banks to get their loans approved. Banks have a reputation and strict criteria for either turning down small business loan applications or entangling the business owners under a huge pile of paperwork. NBFCs and financial institutes that are registered under RBI have also emerged as a popular option among small, medium, and micro business owners. Nevertheless, you must be very attentive and aware when selecting a business loan provider.

You can opt for reliable financial institutions like Kinara Capital that provides collateral-free loans to MSMEs in the manufacturing, services, and trading sectors. Moreover, they offer loans ranging from Rs. 1 lakh to Rs. 30 lakhs with a quick disbursal facility. 

In fact, the RBI has also ranked this organization as a Systemically Important NBFC and a debt-listed company on the Bombay Stock Exchange (BSE). Thus, you can lend worry-free from Kinara Capital and sustain your MSME business successfully!

You may also like