Business Loan · Instant Approval

MSME Term Loan

MSMEs power India's economy — creating jobs, lifting exports and driving industry — yet timely finance is often the missing piece. Janmudra connects you with trusted banks and NBFCs on one transparent platform, so you can compare and apply for an MSME loan online for working capital, machinery or expansion.

Interest from 9.5% p.a.

Up to ₹2 Crore

Tenure of 1 to 7 Years

Collateral-Free Options

Last Updated: 30-06-2026

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Quick Guide

What is a MSME Term Loan?

An MSME loan is business financing for enterprises registered as micro, small or medium under the MSMED Act 2006 — money to steady operations or push the business to its next level. Where a traditional business loan can crawl through weeks of processing, applying for an MSME loan online moves much faster.

Think of a small textile unit in Surat that needs extra funds for the festival rush: rather than halting production for want of cash, it can draw an instant MSME loan and keep pace with demand. Many lenders now shape customised MSME loan options so terms match what the enterprise actually needs.

Loan Categories

Swift Approval

Minimal paperwork plus digital verification means applications clear quickly.

Instant Disbursal

Once approved, the money goes straight into your business account.

Collateral-Free

Plenty of lenders extend MSME loans without asking for any security.

Flexible Repayment Period

Pick a repayment plan that moves with your business earnings.

Affordable Interest Rates

Compare lenders side by side and settle on the option your budget likes best.

Easy Documentation

Only the essentials are asked for — GST, ITR or business proof.

Digital Application

Finish MSME loan registration entirely online, no bank branch involved.

— Eligibility —

MSME Term Loan Eligibility Criteria

Meeting these simple requirements is all it takes:

Age

Between 21 and 65 years

Business Type

Must be registered as an MSME under government norms

Turnover

Usually up to ₹250 crore, depending on the business category

Credit Score

Above 700 gives you a better chance of approval

Business History

The business may need to be running for 1-3 years, depending on the lender

Documents Required for MSME Term Loan

— Documents —

Keep these basics ready for a fast online approval:

KYC Documents

Aadhaar card

PAN

Voter's ID and Passport

Business Proof

GST certificates

Udyam Registration

Financial Records

Bank statements

ITR and balance sheets

Address Proof

Electricity bill

rental agreement or ownership papers

Photographs

Recent passport-sized photos of the applicant

Quick & Easy Process

How to Apply for a MSME Term Loan?

Apply online in just a few simple steps

Step 1

Search for Janmudra and open the MSME loan section.

Step 2

Click Apply Now to begin the digital application.

Step 3

Enter your name, business turnover and financial details.

Step 4

Upload scanned copies of the required documents.

Step 5

Get approval updates delivered fast.

Step 6

On approval, the amount transfers directly to your business account.

MSME Term Loan Repayment Options

Repayment generally happens in one of the following forms:

Bullet Payment

Pay only interest each month and settle the entire principal in one lump sum at tenure end — offered to select borrowers only.

Equated Monthly Instalments (EMIs)

One fixed monthly payment covering both principal and interest across the tenure. You can also manage your EMIs in the following ways:

Partial Prepayment: Pay above your regular EMI to shrink the outstanding principal and cut future interest.
Foreclosure: Repay the full outstanding in one go to close early — charges usually apply, so check first.

MSME Term Loan Interest Rate & Applicable Charges

The charges that apply across different parts of the loan are tabled below:

Particulars	Charges
Interest Rate	Starting from 9.5% per annum
Loan Amount	Up to ₹2 crore
Tenure	1 to 7 years
Processing Fee	0.5% - 3% of loan amount
Foreclosure Charges	2% - 5% depending on lender

Compare MSME Term Loan Offers from Our Top Lenders

Rates, tenures and charges vary between lenders and states — compare through Janmudra without touching your credit score.

Top Banks	Interest Rate	Loan Amount
HDFC Bank Business Loan	Minimum 10.75%	Up to ₹50 lakhs
Axis Bank	Linked to prevailing Repo rate	Up to Rs 15 crore
SBI Bank	Minimum 7.50% p.a	Up to Rs 10 crore