MSME Loan Interest Rate
MSME loans are provided by banks, financial institutions, and lenders to those who are owners of a business or a start-up. There are several lenders in India offering MSME loans to the borrowers. The interest charged will also vary from bank to bank but the interest rate is generally 7.65% annually.
MSME loans, also known as Micro, Small, and medium business loans. This type of loan provides working capital that can be used for various purposes, including buying new inventory, buying new equipment, and paying employees, for the growth of the business. MSME Loan Interest Rate MSME classification criteria are unified for the manufacturing and service industries as Micro, Investment, do not go more than ₹1 crore. Turnover does not exceed ₹5 crores. Small, Investment does not go More than ₹10 crores, And Turnover does not exceed ₹50 crores. medium investment does not go more than ₹ 20 crores. Turnover does not exceed ₹100 crores.
Top Banks’ MSME Loan Interest Rates in 2022 are shown in the following table.
Bank Name Interest rate
Allahabad Bank Bank’s discretion
Oriental Bank of Commerce 10.70% p.a. onwards
Andhra Bank Bank’s discretion
ICICI Bank 13% p.a. onwards
Central Bank of India 11.25% p.a. onwards
Indian Bank 9.75% p.a. onwards
Punjab and Sind Bank 9.95% p.a. onwards
Punjab National Bank Bank’s discretion
State Bank of India 7.65% p.a. onwards
Syndicate Bank Bank’s discretion
UCO Bank 8.85% p.a. onwards
Union Bank of India Bank’s discretion
United Bank of India 10.25% – 16.25% p.a.
