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Bajaj Finserv MSME Loans

Introduction

MSMEs (Micro, Small and Medium Enterprises) are often referred to as the backbone of the Indian economy. They are small-sized businesses that are different from bigger corporates. Though the investment and turnover of MSMEs is small compared to MNCs and corporate, the role of MSME in the economic growth of the country is unparalleled.

MSMEs employ a large number of semi-skilled and unskilled people, thereby contributing to the national economy and GDP. The majority of MSMEs play a crucial role in domestic consumption, manufacturing and exports. Additionally, they also support bigger industries by providing raw materials, finished components, and other goods.

The MSME sector in India has shown huge growth and resilience over the years, despite a slowdown in the global economy. MSMEs in India have been successful in maintaining an average growth rate of 10% in the last few years.

The role of MSMEs in the national economy cannot be overlooked. These enterprises provide employment to a large sector of the population and contribute to urbanisation and development of rural towns and villages.

According to data provided by the Ministry of MSME, under the Government of India, the MSME sector accounts for 38% of the country’s GDP, 40% of India’s overall exports, and 45% of the country’s manufacturing output.

Despite this, most MSMEs in India face a severe shortage of working capital. Unlike big corporates that can easily avail business loans from banks, MSMEs do not fit the criteria for secured business loans.

MSMEs require capital to purchase equipment, invest in inventory, expand their operations, hire and pay staff, launch new products/services and more. Of all the financing options available to MSMEs, MSME loans are the most preferred choice.

Here, in this guide, we take a look at the features, benefits, eligibility criteria, FAQs on MSME loans from Bajaj Finserv, one of the leading NBFCs in the country.

About Bajaj Finserv

Bajaj Finserv is the parent company of Bajaj Finance Limited, which handles lending and wealth advisory services. Bajaj Finserv is the most diversified NBFC (Non-Banking Financial Corporation) in the country, offering a wide range of financial products like consumer, MSME and commercial finance.

Bajaj Finserv was started in April 2007. Earlier, the financial services wing of the company was a part of Bajaj Auto Limited. To promote the financial services of the company better, it was demerged from Bajaj Auto and formed as a separate entity.

Today, Bajaj Finserv is the company responsible for dealing with lending, savings, protection and other financial services of the famed Bajaj Group. Bajaj Finserv serves millions of customers across India by providing them with the best financial services.

BFL (Bajaj Finance Limited) is the wing that is responsible for lending and is listed on both the NSE (National Stock Exchange) and BSE (Bombay Stock Exchange).

What are MSME Loans from Bajaj Finserv?

MSME loans are special business loans designed exclusively to meet the growing business requirements of micro, small and medium enterprises. These loans are convenient and quick, helping businesses meet their financial needs in a timely and easy manner.

MSME loans from Bajaj Finserv have an upper limit of Rs. 30 lakhs. Businesses can use this amount for any purpose like:

  • investing in the firm’s infrastructure
  • Purchase new machinery and equipment
  • Expand operations
  • Pay off outstanding debts
  • Increase cash flow
  • Hire and pay staff
  • And more

MSME loans from Bajaj Finserv do not require any collateral. This means you can avail the loan amount without having to pledge any assets. This is a huge plus for businesses that do not have any assets, as it makes it easy for businesses to secure financing.

Additionally, MSME loans from Bajaj Finserv have other attractive features like low-interest rates, Flexi loan facility, speedy approval within 24 hours and more.

If you’re looking for hassle-free loans for your MSME, then Bajaj Finserv is an ideal choice.

How are MSMEs classified?

The government of India classifies MSMEs based on their investment in plant equipment and machinery.

Investment Values

MicroSmallMedium
Manufacturing CompaniesInvestments less than Rs. 25 lakhsInvestments from Rs. 25 lakhs to Rs. 5 croresInvestments from Rs. 5 crores to Rs. 10 crores
Service EnterprisesInvestments less than Rs. 10 lakhsInvestments from Rs. 10 lakhs to Rs. 2 croresInvestments from Rs. 2 crores to Rs. 5 crores

Based on the investment scale, you can classify your business as micro, small or medium.

Why do small business owners prefer MSME loans over other financial products?

Here are a few reasons why most small business owners opt for a hassle-free, unsecured business loan compared to other loans.

  • Short loan processing cycle

When it comes to small businesses, time is of the essence. Even small delays in payments could lead to missed opportunities or the opportunities going to competitors.

When there are situations that require instant working capital, MSME loans are a huge lifesaver. With quick processing and speedy loan amount disbursal, it helps business owners meet their cash requirements quickly, thereby making the best use of the available market opportunities.

Additionally, MSME loans from Bajaj Finserv do not require the borrower to submit any collateral. This further shortens the processing time as there is no need for an appraisal of assets. MSME loans from Bajaj Finserv are approved within 48 hours, thereby helping business owners capture the market opportunities quickly, without wasting any time.

  • Retain Full Control over the Business

When small business owners invite investments from angel investors and venture capitalists, they have to give up their complete control over the business. Most VCs and Angel investors look to make changes in the operation of the business.

On the other hand, funding borrowed from NBFCs like Bajaj Finserv does not involve loss of control. This is critical for a small business owner, as they need to retain full control over their business to ensure that it runs according to their intended plan.

Additionally, since MSME loans are collateral-free, business owners can continue using their existing assets as before, without submitting them to the control of lenders.

  • Attractive Interest Rates

This is one of the biggest benefits of MSME loans. Compared to other loan products, MSME loans have lower interest rates. This reduces the overall cost of the loan, lowering the burden on the borrowers.

The cost-savings availed as a result of low-interest rates can be better utilised to grow the business. Bajaj Finserv also offers an attractive line of credit facility – this means MSMEs are sanctioned a particular loan amount. The small business owner can make multiple withdrawals on this sanctioned loan amount. It’s not necessary to withdraw the entire loan amount in a single draw.

The borrower has to pay interest only on the amount withdrawn and not on the entire amount sanctioned. This further reduces the loan burden of the small business owner.

  • No Restriction on Loan Amount Usage

To give an example, home loans must be used only for the purchase of homes. Similarly, car loans are used to purchase a new/old four-wheeler. On the other hand, the amount sanctioned via an MSME loan can be used for any purpose. There is no restriction on how the small business owner uses it.

He/she can utilise the funds in any way, to address any financial needs of their business. You can use the loan amount to purchase new equipment, machinery, extend the business operations, hire extra staff, or upgrade your business office and more.

Who can apply for an MSME Loan from Bajaj Finserv?

To apply for an MSME/SME loan from Bajaj Finserv, you have to be one of the following entities:

  • Self-employed professionals – This includes doctors, chartered accountants, company secretaries, architects and lawyers who are practicing their profession.
  • Self-employed non-professionals – This includes retailers, small business owners, partnership concern proprietors, sole-proprietors, traders, manufacturers and others in a similar profession.
  • Entities – Not just individuals but also entities can apply for MSME loans from Bajaj Finserv. This includes partnership concerns, private limited companies, limited liability partnerships, limited liability companies and closely held limited companies.

Eligibility Criteria for MSME Loans from Bajaj Finserv

Apart from being one of the entities mentioned above or individuals, applicants must meet the following conditions to be eligible for an MSME loan from Bajaj Finserv:

  • Must be an Indian resident
  • Must be aged between 25 and 66 years
  • The business must have been existent and in operation for at least three years

5 Reasons to Avail MSME Loans from Bajaj Finserv

  • Loans up to Rs. 30 lakhs with no restriction on loan amount usage
  • Loan Approval within 24 hours
  • Collateral free loan processing
  • Convenient, flexible loan repayment schedules
  • Online access to your loan account

Features of MSME Loans from Bajaj Finserv

  • High loan limit

    Avail finance up to Rs. 30 lakhs for all your business requirements

  • Quick loan processing

    Receive your loan amount within 24 hours of loan sanction.

  • Online loan application

    The entire process right from loan application to loan disbursal is carried out online.

  • Flexible loan facility

    One of the biggest pulls of Bajaj Finserv MSME loans is the flexible loan facility. You can borrow and repay funds according to your businesses’ dynamic requirements. You are provided with a bulk loan amount, from which you can make multiple withdrawals. The beneficial feature here is that business owners have to pay interest only on the amount they withdraw, thus lowering EMIs effectively by 45%.

  • Minimal Documentation

    The loan documentation process is quite simple, as you have to submit only two documents at the time of the loan application. The best part – a loan officer from Bajaj Finserv visits your business premises or home to collect the documents in person, avoiding the need for you to visit the nearest Bajaj Finserv branch.

  • Flexible Tenure

    You can choose loan tenures ranging from 12 months to 60 months, based on your business requirements.

  • Online Loan Management

    Access your loan account 24 x 7 using the customer portal of Bajaj Finserv. This gives you a clear picture of your loan outstanding and the amount you have to pay.

  • Avail Pre Approved Offers

    Bajaj Finserv offers pre-approved loans for MSMEs. If you qualify for a pre-approved loan offer, you can easily avail a loan anytime without waiting for it.

How to apply for an MSME loan from Bajaj Finserv?

There are two ways to apply for an MSME loan.

1. Online Application

Step 1: Visit the Bajaj Finserv website and select your preferred loan product. In this case, it is MSME loan and click on “Apply Now.”

Step 2: Enter the mandatory details like your personal details, details about the business and click on “Submit.”

Step 3: Once the form has been submitted, a loan representative from Bajaj Finserv will get in touch with you to discuss your pre-approved loan offer.

2. Loan Application via SMS

Step 1: SMS “MSME” to 97736-33633

Step 2: A loan representative from Bajaj Finserv will get in touch with you to discuss your pre-approved loan offer.

MSME Loans from Bajaj Finserv at a Glance

LendingKart MSME Loans - Features

Customized Interest RatesStarting from 18%*
Loan Tenure12 months to 60 months
Loan AmountMaximum available loan limit – Rs. 30 lakhs
Eligibility CriteriaBusinesses that have been in operation for at least 3 years

*The final interest rate charged depends on the financial health of your business – the annual turnover, profit and loss, and other revenues.

MSME Loans FAQs

1. What are the documents required to apply for an MSME loan from Bajaj Finserv?

MSME loans from Bajaj Finserv require minimal documentation for approval. Here are the documents that you have to provide while following:

  • KYC documents for identity proof, address proof
  • Statements of bank account
  • Proof of business operation for more than 3 years

You may have to submit additional documents if required.

2. What are the permitted KYC documents?

While applying for the MSME loan from Bajaj Finserv, you can submit any one of the following documents for KYC proof:

Aadhar Card, PAN, voter’s ID, driving license or passport

3. How to know if I am eligible for an MSME loan from Bajaj Finserv?

To be eligible for an MSME loan, you have to meet the following criteria:

  • Applicants must run a business that is at least three years old
  • Applicant must be within the age of 25 to 55 years
  • The business must have filed their IT returns for the last financial year

If you meet these eligibility criteria, you can easily avail a business loan from Bajaj Finserv. Additionally, the lender checks with if your business has a good credit history with no records of default before you approving your loan application.

4. What is the interest rate for an MSME loan from Bajaj Finserv?

The interest rates for the Bajaj Finserv MSME loan start from 18%. The interest rate you will be charged depends on several factors like the age of your business, the financials of your business and more.

5. What are the other small business loans from Bajaj Finserv?

Apart from MSME loans, Bajaj Finserv also offers the following loan products to meet the needs of various businesses:

  • Machinery loan
  • Working capital loan
  • Business loan for women
  • Flexi business loan
  • Targeted business loan

6. How can you pay the premiums for MSME loans?

Bajaj Finserv makes it incredibly easy to repay your MSME loans. You can pay the EMIs online using your debit/credit card, internet banking, digital wallets or online transfers. Alternatively, you can visit the nearest branch of Bajaj Finserv to pay the premium in person.

7. How can I check my loan details?

Bajaj Finserv offers digital tracking of loans. Under this option, you have to enter your 10-digit registered mobile number to log into the portal. The portal offers all the details of your loan account including the next EMI date, outstanding balance, remaining tenure and more.

8. How to get in contact with Bajaj Finserv?

You can call Bajaj Finserv on 86980 10101 for all your loan related queries. Alternatively, you can send in your queries to wecare(at)bajajfinserv(dot)in and the team will get back to you within 48 hours. You can also contact the customer care team by using the Bajaj Finserv app, which is available for download on both iOS and Android.

9. How can I find my next EMI due date?

To view all your loan details along with the next due date of the EMI, you can refer to the statement of account, which is available in your Customer Portal. Log in to the customer care portal and select view loan details.

10. Can I foreclose my MSME loan?

Yes, you can foreclose your loan at any point in the tenure after paying the first EMI. There are no penalties or extra charges to foreclose the loan.

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