LoanTap offers MSME loans for new businesses.  Check the eligibility for an MSME loan and apply in a few steps
Published on : January 27, 2022

MSME businesses are an important part of India’s growing economy. Micro, Small, and Medium Businesses are the country’s largest employment providers. It holds a 45% share of the manufacturing industries and a 40% share of the export companies. Like any other business, MSME enterprises/ businesses need investments for growth in the market and survival for a longer time. The Government of India has also designed many MSME schemes related to business and entrepreneurship to promote budding  SME businesses globally.  These schemes also include MSME business loans to build a strong foundation. 

However, you need to qualify certain criteria to get the MSME loan to get the working capital from NFBCs or banks. There is no other platform to provide borrowers with a seamless loan process to get the immediate funds. LoanTap has created an accessible digital lending platform to offer business loans for growing businesses. 

Why is it an ideal choice for MSME Business Loans?

LoanTap has special MSME and SME loans for businesses looking for quick finance. It is also a loan application process that helps in speeding up financial delivery. This type of loan will provide you with working capital used for various purposes, including purchasing new inventory, buying new equipment, hiring a new workforce, and expanding your business to the next level. These MSME loans are considered risk-free and profitable. 

Instant Approval and Disbursal: MSME Loans for New Business is accessible through digital lending platforms, where you need to follow a simple application process for loan approval. Getting SME loans online is an affordable way to get cash within 24 – 36 hours with the same-day disbursal system. 

Convenient Installment Option:  MSME loan scheme offers you the loan amount ranging from INR 50,000 to INR 2,50,000. This business loan provides you with an ideal solution to repay via Fixed EMIs based on your profile and other related factors. You can choose the customized mode of repayments at your convenience. 

Zero Paperwork: Applying for a loan online requires less documentation and no paperwork for verification. That’s the reason why Millenials are approaching online fintech lenders for loans. MSME business loans are available with basic and minimal documents. Without going to any bank, you can apply for the MSME Loan through the LoanTap website. 

MSME / SME Loans without Collateral: MSME business loans are unsecured loans, which don’t require any collateral or security for the loan approval. Any business owner can apply for a loan without submitting any asset to the Bank or NBFC

No Hidden Costs:  LoanTap’s MSME loans do not charge you any hidden costs. LoanTap will charge only an upfront processing fee of 2% with taxes. You can use the loan amount with no hidden charges and create a valuable business with instant funds.

Easy Repayment Tenure: With lower interest rates, you can complete the repayments of the entire loan amount with the flexible tenure system. MSME Loans Online provides you with flexible repayment tenure ranging from 3 months to 36 months. Our MSME Loan is a term loan that you can repay in the form of fixed EMI.

Zero Prepayment Charges: All MSME and SME loans come with no prepayment fees post six months of disbursements. You can clear all your debt after six months. This way, you can avoid missing payments and maintain a healthy credit score.

Eligibility Criteria to apply for an MSME loan?

LoanTap has kept the eligibility criteria bare minimum to process the online business loan faster. You do not need to go through many documents or unnecessary paperwork, as it can slow down the loan approval process. You should qualify the criteria mentioned below:-

  • You must be an Indian citizen or resident
  • You should be over 22 years of age
  • You must have a net income of over Rs 30000 per month
  • Applicants must have filed the latest ITR. 

How to apply for MSME Loan from LoanTap?

LoanTap brings you a digital lending platform to access business loans online. You can visit the LoanTap website to request a  loan in just a few clicks. Here are the steps for you to follow to get the loan approval.

Step 1: Create your profile on the LoanTap website or download the LoanTap app. Register yourself by adding your email address and other personal details.

Step 2: Submit the following documents to verify your professional and bank details. 

  • PAN Card
  • Aadhaar Card/ Driving License/Passport
  • Bank statement of last six months
  • Income tax returns of last two years

Step 3: After uploading the documents, wait for the response from the team. It takes a few hours for the team to verify the documents and review your online application. 

Step 4: LoanTap will ask you to complete the KYC process and verification process of other credit checks. 

Step 5: If your CIBIL score is good and you match all the loan parameters, LoanTap will activate the instant disbursal within  24 hours and credit the funds to your account.

Smart Ways to  use MSME / SME loans

The micro, small and medium enterprises sector is bringing a positive change to the Indian economy. Lack of financial support is one of the biggest bottlenecks for MSME growth in India. However, financial companies are interested in building an MSME ecosystem to finance small and medium enterprises. As a business owner, you should know how to utilize MSME funds. So, here are a few smart ways to utilize an MSME / SME loan.

Inventory Management

Inventory management is a critical task of managing a small business. The profits of any business depend on the sales. As per the survey, 31% of the MSME businesses use small business loans to purchase inventory management tools. You can utilize the loan amount in managing seasonal dips, top up with new stocks and invest in creating product samples to bring more sales in-house.

Purchasing Plant & Machinery

You can use these collateral-free MSME loans to fund new equipment and building infrastructure. For heavy machinery, you will require heavy funding, which can help in expanding your business operations without any financial strain.

Consolidate your business debt

Short-term MSME loans allow you to consolidate business debts and repay the loan amount in EMIs. It can reduce your financial stress and help you manage your monthly budget. You are allowed to set your repayment date. Business Debt can be reduced by taking MSME loans with easy repayment tenure up to 12 months.

Invest in Marketing

Marketing is a crucial part of growing your business. It helps you to attract more customers to build a brand image. You can achieve two things with an effective marketing strategy. One, building trust and loyalty with existing customers. Second, acquiring new customers from both existing and new markets. However, marketing needs a lot of funds to get effective results from online and offline marketing campaigns.

Final WordsLoanTap’s MSME loan helps small and medium business owners by providing immediate funds. Online Business Loan facilities can reduce delays and maximize loan availability.  LoanTap is in partnership with the Bank of Maharashtra to offer a co-lending model for borrowers, where any business owner is allowed to get loans at affordable interest rates with a tenure of 36 months. To know more, you can visit the MSME Loan Webpage or apply using a LoanTap app from Google Play Store.