Are you looking to apply for an SME loan? Here’s all you need to know!

Small and Medium Enterprise (SME) loans are designed to help businesses with their financial requirements by providing loans. Sme loans & financing is proven to be the ideal platform for small and medium scale businesses to meet their financial requirements. The ability of SME to provide access to financing is significant for funding business investment, thus ensures the potential growth of the business market.

The key features of SME loans are:

  • The time taken for processing is quick.
  • Flexibility in the provision of loans.
  • You can easily avail of the loan up to 30lakhs.
  • Minimal paperwork is required.
  • Online services are provided.

Before applying for the sme loans & financing, this below mentioned criteria has to be fulfilled:

You are eligible to apply for sme loan, only if you own business and that must have finished a minimum of 3years. Also, your age should be 25-35. You must have IT Returns of your business at least for the past year.

The below are the documents required to apply for SME loan:

Very less or minimal paperwork and documents are required to apply for an SME loan.  The documents required are Identity proof, address proof, PAN card, financial documents of your company, and filled in registration or application form, KYC documents, statements of bank account, proof of your business.  Also, you may be asked to submit some other documents, if required.

The benefits of SME loan are as follows:

1.     Accessibility and Convenience

The SME loan process offers high accessibility and convenience to the business owners.  Convenience about application and registration for the loan, availing of loan, and finally, repayment of the loan is the characteristic feature of SME loan.

2.     Good Short-term Option

The SME loans are a very good option for small and medium business people because the SME loans provide loans as per their requirements. These loans are flexible and show 100% disbursement, 70% payout which makes it easy for the business owners to maintain and handle the financial conditions.

3.     Rate of Interest

Many private and government banks provide SME loans with relatively fare rate of interest.  Also, you can have varied options about the selection of the bank according to the rate of interest that is convenient for your business. Thus, SME loans provide an opportunity to expand and grow your business with a great success rate.

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