Run your
Business Non-Stop
with Collateral-free MSME loans from ProFinTech.
Run your
Business Non-Stop
with Collateral-free loans for MSMEs from ProFinTech.
Testimonials from our MSME partners
ProFinTech is effortless and provides us with extra financing, especially, during peak seasons when we have cash crunch.
Partner, Medical Textiles Manufacturing Company
Thanks to ProFinTech, our cash flow has become stable. After processing our trade data, documents etc, ProFinTeam disbursed the loan amount within 20 hours. Now that we have ProFinTech, we are not stressing about getting a loan and completely are focussing on serving our clients
Supplier to a Global Public Transportation
I read about ProFinTech in a Mint article. After talking to their team, I am convinced and decided to use their Credit Bazaar platform. Since then, I am happy with their quick turnaround time, how quickly they give out loans within 24 hours. I got the loan money within 5 hours, at times.
Proprietor, Cargo Company
Table of contents:
Fast MSME loans
Get collateral free loans for your business.
Within 24 hours. Join Credit Bazaar!
ProFinTech is effortless and provides us with extra financing, especially, during peak seasons when we have cash crunch.
Partner, Medical Textiles Manufacturing Company
Thanks to ProFinTech, our cash flow has become stable. After processing our trade data, documents etc, ProFinTeam disbursed the loan amount within 20 hours. Now that we have ProFinTech, we are not stressing about getting a loan and completely are focussing on serving our clients
Supplier to a Global Public Transportation
I read about ProFinTech in a Mint article. After talking to their team, I am convinced and decided to use their Credit Bazaar platform. Since then, I am happy with their quick turnaround time, how quickly they give out loans within 24 hours. I got the loan money within 5 hours, at times.
Proprietor, Cargo Company
Table of contents:
MSME Loans
As per RBI statement in Sep 2024, the priority lending to MSMEs has increased by 14.8%. The priority lending to MSMEs in August 2024 increased to ₹25.5 lakh crore from ₹22.2 lakh crore in August 2023. While lending to Micro and Small enterprises (MSEs) increased by 13.5%, the same for Medium enterprises grew by 20.8%, during the same period. This is because of many government schemes and financing options. You can read about some of the popular government schemes for MSMEs here
In addition to various government schemes, a major shift is happening in the MSME financing sector. Micro and Small businesses are now able to get loans based on their business data and ongoing trade business rather than traditional methods that require collateral. Micro and Small enterprises can greatly benefit from this shift to data-driven financing (or data-based business loans) as it does not need collateral and also release MSME loans or funds within a day or within a few hours.
1.1 What are the eligibility criteria for MSME loans?
MSME loans help business enterprises with quick funds for their growth, expansion and daily operational needs. They not only provide financial stability and improve creditworthiness of the business owner, but also allow non-stop running of the business. MSMEs use these loans for different business-related purposes –
To start a new business or expanding their current business
For working capital like paying salaries, purchasing goods, raw materials and packaging, stocking up inventory, marketing and advertising their products, or for buying a few vehicles
For purchasing a new facility or plant & machinery, spare parts, electrical equipment etc
For constructing a plant or for buying land/factory or commercial properties
To pay the suppliers in terms of Bill Discounting
To have additional funding for the business etc
The general eligibility criteria for an MSME loan are as given below :
- As an applicant, one should be at least 21 years of age, with the upper limit of the age being 65 years.
- He/she must be a citizen of India.
- Individuals, MSMEs, business owners, women entrepreneurs, self-employed professionals, traders, Startups, operators & service providers, and people falling under SC/ST/OBC category.
- Legally recognized entity under MSME guidelines
- Private or Public limited companies, Sole proprietorships, Partnership firms, Limited Liability Partnerships (LLPs) engaged in the trading, services and manufacturing sectors
- Annual business turnover: As defined by the lender; this varies from bank/NBFC to bank/NBFC
- Good Credit score as creditworthiness of the applicant will be considered by lenders
- Good repayment history and financial stability
1.2 What documents are required for an MSME loan?
MSMEs need to submit the following documents while applying for an MSME loan or a business loan :
- KYC documents including Passport, Aadhar card, PAN card, Voter’s ID card, Driving license, Utility bills (Telephone, Electricity bills), property tax receipt – of applicant and co-applicants
- Udyam registration certificate
- Business incorporation certificate and Business address as proof
- The business plan as drafted by the applicant
- Banking history
- Financial statements, balance sheets and tax returns
- Other documents required by the bank/NBFC
1.3 What are the top Government loans or schemes for MSMEs?
As we all know, the Government of India has launched several schemes and business loans to empower the MSME sector. These initiatives, often implemented in collaboration with financial institutions, aim to provide much-needed support to MSMEs. Some of the popular government-backed MSME schemes include
- CGTMSE : Credit Guarantee Fund Trust for Micro and Small Enterprises
Since the launch of the CGTMSE, till November 30, 2023, guarantees amounting to ₹ 5,33,587 crore have been issued under the Credit Guarantee Scheme for Micro and Small Enterprises (CGMSE). (source: IBEF)
- PMMY : Pradhan Mantri Mudra Yojana
Collateral-free Mudra loans crossed the ₹ 5 trillion in disbursals, in FY24, which is a monumental achievement in small business financing.
- CLCSS : Credit Linked Capital Subsidy Scheme
- ECLGS : Emergency Credit Line Guarantee Scheme
According to the Ministry of MSME, the ECLGS has provided ₹ 3.47 lakh crore as collateral-free loans to over 1.3 crore MSMEs as of June 2024, supporting businesses affected severely by the pandemic.
- ABRY : Atmanirbhar Bharat Rojgar Yojana
The Atmanirbhar Bharat Rojgar Yojana (ABRY) is a scheme launched by the Government of India to incentivize employers for creating new employment opportunities and restoring jobs lost during the COVID-19 pandemic. The latest updates on this scheme are available here.
- NSIC : National Small Industries Corporation subsidy
The National Small Industries Corporation (NSIC) extends credit support to MSMEs through three primary channels: Raw Material Assistance (RMA) against Bank Guarantee, Credit Facilitation through Bank partnerships, and Bill Discounting. This comprehensive approach empowers MSMEs to access the necessary funds for their operations and growth, contributing to the overall development of the MSME sector.
Collateral free MSME Loans from ProFinTech
ProFinTech’s approach to supporting MSMEs with fast loans is quite different from traditional banking. In traditional banking, business owners have to submit the records of their physical assets or lengthy credit histories. But ProFinTech uses real-time business data of the MSME to assess creditworthiness and to provide collateral-free loans. We focus on the daily transactions of an MSME, which automatically builds the creditworthiness of the MSME owner and speeds up financing for his/her business.
Our Data-driven lending approach is revolutionizing the way MSMEs access capital. By analyzing real-time operational data, we are empowering many MSMEs with timely business loans (disbursed within 24 hours) and are ensuring smooth cash flow for their daily business needs.
Now that you know more about ProFinTech’s Collateral-free loans for MSMEs, do talk to us or join our Credit Bazaar, a live marketplace where MSMEs meet Banks and NBFCs for their business loans. Do follow the process given below.
Our process is as easy as 1,2,3,4….
If you need a fast and collateral-free loan for your business, connect with us Or call us or whatsapp us at 9154847078. You can also read this page written exclusively for MSMEs and their loan needs
*This article provides information on MSME loans, which is relevant for MSMEs. It also covers how differently ProFinTech supports MSMEs with Collateral free Loans for MSME and Data-based lending.