MSME Loan

A substantial portion of the SME sector may not have the security required for conventional collateral based bank lending, nor high enough returns to attract formal venture capitalists and other risk investors.

MSME industries plays vital role in Indian economy and job market. So it’s priority sector for GOI and it has liberalized some of banking norms specifically for MSME Financing and it has also been declared as priority sector for Banks as well.

SME finance is the funding of small and medium-sized enterprises, and represents a major function of the general business finance market. This kind of financing is done through bank loans and overdrafts; leasing and hire-purchase arrangements; equity/corporate bond issues; venture capital or private equity; asset-based finance such as factoring and invoice discounting,[1] and government funding in the form of grants or loans.