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MSME Loan Interest Rate
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 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.