Micro, Small and Medium Enterprises (MSMEs) loans are given by the government, to the people who want to invest in their businesses. They are classified into two categories: Manufacturing enterprises and Service enterprises. Manufacturing enterprises engage in the manufacture or production of goods or employing plants and machinery. The service enterprises are engaged in providing services and are defined in terms of investment in equipment.

In both manufacturing and service sectors the micro enterprises annual turnover is below Rs. 5 crores. For small enterprises the annual turnover is between Rs. 5 crores to Rs. 75 crores and medium enterprises have an annual turnover between Rs. 75 crores to Rs. 250 crores.