What is a MSME Loan Interest Rate?
A MSME Loan interest rate refers to the percentage charged by lenders on the borrowed amount used for business-related expenses. Whether you are planning to expand your business, purchase new equipment or manage working capital, the interest rate plays a critical role in determining the overall cost of your MSME Loan.
At Godrej Finance Limited, we offer competitive MSME Loan interest rates starting from 17% p.a., designed to empower businesses across sectors with quick access to capital and minimal hassle.
Types of MSME Loan Interest Rates
1. Fixed Interest Rate
With a fixed rate, your interest remains unchanged for the loan tenure. This gives you predictable EMIs and helps with long-term budgeting.
2. Floating Interest Rate
Floating interest rates vary with market conditions or external benchmarks. While your EMIs may fluctuate, floating rates can lead to cost savings when market rates go down.
3. Hybrid Interest Rate
A hybrid rate combines the features of both fixed and floating rates. It typically starts with a fixed rate for an initial period before switching to a floating rate.
Interest Rate & Charges, Documents & Eligibility for MSME Loan
Godrej Capital offers MSME Business Loan at competitive interest rates, making financing simpler and more accessible for growing enterprises. Explore the MSME Loan details below to plan your borrowing efficiently.
| Types of fees | Charges applicable |
| Rate of Interest | Starting from 17% per annum |
| Loan Amount | INR 5 lakhs to INR 50 lakhs |
| Processing Fees | Up to 3% of the loan amount |
| Foreclosure Charges | Up to 6% of principal outstanding at the time of foreclosure |
| Part Pre-payment Charges | 2% of the amount prepaid |
| Charges towards Stamp Duty | As applicable & prescribed by the relevant Government Authority |
Submitting the right documents is crucial for a smooth MSME Loan approval process. At Godrej Capital, we simplify the documentation so you can apply for your MSME Loan online with ease. Review the essential paperwork below to get started and access complete MSME Loan details confidently.
| KYC Documents | PAN Card |
| Aadhar Card (Proof of Address) | |
| Passport-sized photo | |
| Udhyam Certificate (if applicable) | |
| Income Documents | GST Certificate (if applicable) |
| Latest 6 months bank statement |
*Refer Policy document for more details
Before you apply for an MSME Loan, it is important to understand the basic MSME Loan eligibility criteria. This not only streamlines the approval process of your Business Loan for MSME but also improves your chances of a successful MSME application.
| Loans for | Self Employed Non-professionals |
| Profile | The applicant should be a Sole Proprietor/Partnership firm/Private Ltd Co./Unlisted Public Ltd Co./LLP involved in the business of Manufacturing, Trading or Services |
| Age | 25 to 65 years |
| Business Vintage |
1. Minimum business vintage of 3 years 2. Minimum turnover of INR 40 lakhs 3. Bank account in the name of the business 4. Minimum profit of INR 3 lakhs |
* Disclaimer: All contents mentioned on this page, including but not limited to documents, eligibility may vary for each borrower and are subject to the discretion of the lender. The content is subject to change without prior notice.
Factors Affecting MSME Loan Interest Rates
1. Business Vintage
The longer your business has been operational and profitable, the better your chances of securing a lower interest rate.
2. Credit Score
A strong business or personal credit score, usually 700+, signals creditworthiness and lowers the risk for lenders, potentially reducing your rate.
3. Loan Amount and Tenure
Shorter repayment tenures may attract lower rates. The sanctioned amount also plays a role based on the lender’s risk evaluation.
4. Business Type and Industry
Certain industries or business models with stable income flows and growth prospects may be offered more competitive rates.
5. EMI Payment Ability
Showing consistent cash flow and repayment capability increases your chance of getting a better interest rate.
Key Features & Benefits of Godrej Capital MSME Loan
Smart MSME Loan Calculator for Financial Planning
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