MSME Loan Overview

Interest Rate  

7.65% p.a. onwards  

Loan Amount  

Rs.50,000 onwards 

Loan Tenure  

Up to 15 years  

MSME Loans are very crucial for the development of the MSME sector in India. Most of the banks and NBFCs provide MSME loans to Micro, Small and Medium Enterprises. The interest rates on the MSME loans range from 8.50% to 17% depending on the business profile and internal policies of the lender. 

The best bank for MSME loans is the one that caters to your requirement at lower interest rates. It purely depends on your business credit profile and the lender’s policies.

The following are the interest rates offered on MSME loans by the top lenders.

Leading Banks and their MSME Loan Interest Rates


Bank Name 

Interest Rate

Allahabad Bank MSME Loan

At the discretion of the bank 

Oriental Bank of Commerce MSME Loan

From 10.70% per annum 


At the discretion of the bank

State Bank of India MSME Loan

7.65 percent per annum onwards

Syndicate Bank MSME Loan

At the discretion of the bank

Union Bank of India MSME Loan

At the discretion of the bank

UCO Bank MSME Loan

8.85% per annum onwards

United Bank of India MSME Loan

10.25% to 16.25%

The above interest rates mentioned are indicative, it may vary as per the lenders’ policies. If you are looking for a business loan, you can check your eligibility at CreditMantri with just a few clicks.