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Get an MSME Loan for New Business in 2025

MSMEs are the bedrock of the industrial landscape in India, constituting various enterprises across different sectors. As per the Ministry of Micro Small and Medium Enterprises, MSMEs contribute significantly to GDP, employment, and exports for the country. They are responsible for 30% of the nation’s GDP and about 46% of exports. Furthermore, MSMEs encourage entrepreneurship, which also results in inclusive development and productivity.

In India, there are more than 63 million MSMEs which are also a major job driver for the nation. After agriculture, the MSME sector is the biggest employment generator. As per a report by India Brand Equity Foundation (IBEF), during 2021-22, MSMEs happened to be behind the creation of 93 lakh jobs which accounted for 42% of all the jobs created in the country. As the MSME sector expands, this is expected to grow in forthcoming years. So, yes we can say that MSMEs are indeed the backbone of the Indian economy. They make a significant part of the country’s economic growth.

What Are MSMEs?

MSME stands for Micro, Small, and Medium Enterprises. As per the MSMED Act of 2006 of the Government of India, MSMEs are enterprises that process, produce, and preserve products. Talking of MSMEs individually, as per revised MSME definitions by the Finance Ministry of India says Micro Enterprises as businesses with investments below 1 crore and revenues below 5 crores. Companies with income between one to ten crores and the revenue limit is up to 50 crores are small enterprises. Whereas, companies investing up to 50 crores and having turnovers between 50 and 250 crores are termed as the medium-sized enterprises.

MSME Business Loan Budget 2025

Micro-enterprises will get credit cards from Udyam portal, each with Rs. 5 lakh, and a total of 10 lakh cards will be in the first year.
A new Rs. 10,000 crore Funds will be launched with new purpose and extent
A program for Rs. 2 crore as term loans over 5 years to 5 lakh women and SC/ST first-time entrepreneurs.

Demand for MSME Business Loan to Support Entrepreneurs

Despite being the backbone of the Indian economy, MSMEs are still facing issues in their development due to limited access to finances. Traditional lenders, such as banks, often hesitate to take risks on individuals with limited experience and shorter credit history. To address this gap, many NBFCs are providing MSME financing solutions. This way, they help entrepreneurs in acing their businesses.

Key Features

Collateral-Free Funding

Secure capital without risking personal or business assets

Seamless Digital Journey

Paperless applications, instant approvals and funds transferred with just a few clicks

Tailored Repayment Solutions

Align repayments with your cash flow for stress-free financial management

Lightning-Fast Approval

Receive a lending decision within 48 hours, accelerating access to critical funds

Eligibility Criteria

Eligible Business Entities and Sectors

Self-employed professionals, sole proprietorships, private limited companies, partnership firms and Limited Liability Partnership firms engaged in manufacturing, trading, or service-oriented industries are eligible to apply.

Annual Turnover Requirement

The business must report a minimum annual turnover of ₹50 lakhs (INR 50,00,000) as per the latest financial records.

Minimum Business Operational Tenure

Applicants must have a minimum operational history of one (1) year in their current business at the time of application.

Applicant Age Parameters

The applicant must be at least 21 years old when submitting the loan application and must not exceed 65 years of age by the loan’s maturity date.

Identity & Business Address Verification Documents

PAN Card

Voter's ID Card

GST Certificate

Driving License

Passport

Ownership Proof

Aadhar Card

Bank Statement for 12 months

Udhyam Registration Certificate

Rate of Interest

Starting at just 1.5% Per Month

Stamp Duty

As per applicable laws of the state

What is an MSME Business loan?

The MSME loan for new business is the type of loan that is made especially for Micro, Small, and Medium Enterprises. This loan will help finance the acquisition of your company, the purchase of your operating equipment, or fund the company’s normal running costs. The MSME loan procedure requires the submission of documents such as business registration and financial statements. For those who are thinking about how to get these loans, many NBFCs like Credlix will help you meet the criteria and provide collateral-free MSME loans.

Features of an MSME Business Loan

Access to Funds

The small business loan for MSMEs helps finance small entrepreneurs in the purchase of new machinery, hiring new staff, or entering new markets.

Small Businesses can avail collateral-free MSME loans, beneficial for many small businesses that might not have assets to offer

Apart from this, you may avail collateral-free MSME loans, beneficial for many small businesses that might not have assets to offer.

Flexible Repayment Options

MSME loans for new businesses are known for their flexible terms that will help small businesses better manage their cash flows. Many NBFCs like Credlix come up with special packages that meet your company’s demands

Low Interest Rates

Speaking about MSME loans, they are less risky as lenders offer affordable interest rates, enabling owners to save money for future business operations.

Credit Score Improvement

You can improve your credit score by repaying collateral-free MSME loans so that you won’t face any problems in getting future loans.

Simple Application

You can easily avail multiple MSME financing solutions with instant amount disbursal and fasttrack your business.

Advancement in Business

With MSME loans, you can elevate your business by using advanced technologies and infrastructure. Can stand out in Tier-2 and Tier-3 cities and towns by modernising your practices.

Importance of Small Business Loans for MSMEs

Let us take a look at why the MSME business loan is an imperative growth factor for businesses

1. Access to Capital:MSME finances are a way to overcome the capital access problems small businesses often encounter when in need of more assets or credit history in raising capital by conventional means. These customized MSME financing solutions have a positive impact on them in terms of the accomplishment of the objectives of the company.

2. Requirement of Less Collateral: Most MSME loans are short-term, thus, the money can be used only for one or a few months. At most businesses, the loss would not be heavy.

3. Improved Repayment Plan: Small business lenders devise repayment schedules that align with business cash inflow. They balance out loan obligations with operations.

4. Incentives & Subsidies: A few schemes being run by the government, for instance, the Credit Guarantee Scheme for Micro and Small Enterprises (CGTMSE) or Credit Linked Capital Subsidy Scheme (CLCSS), extend financial aids for MSME loans, e.g. interest subvention, capital subsidy, or guarantee coverage.

When it comes to promising ventures, especially those who have not yet reached their full potential, the MSME loan for new businesses will help you upscale your business.

5 Ways to Use Collateral-Free MSME Loans

Here are five ways to use small business loans for MSMEs to your advantage:

Investment in Infrastructure: A business that is operating on a tight budget can procure an MSME loan to purchase equipment used in production.
Stock Management: In small businesses, inventory is the key playmaker because this determines the amount of revenues. Surprisingly only 31% of companies that apply for an MSME business loan use the funds to buy inventory. Entrepreneurs can restock the existing stock or buy new product samples.
Working Capital: This is the amount of money a business needs to run its day-to-day operations. Working capital management is performed so that the business can exist and function without depending too much on the customers and suppliers. A company that is small or medium-sized can need cash flow management and working capital improvement that can only be done by MSME financing solutions.
Invest in Marketing: When a company does marketing, its horizons broaden. A small business owner can use a good marketing plan to retain clients' and also attract new clients. This marketing also demands money be it offline or online. An MSME business loan will help the entrepreneurs in developing a complete marketing plan.

Customer Feedback and Recommendations

Real stories from real clients showcasing their journey with us

Fastest loan approval I’ve ever seen! Helped me stock up on inventory right before the peak season.

Founder – Wholesale Electronics Trader – Delhi

Credlix’s Customer service was top-notch! They explained everything clearly and got me the best deal possible.

Proprietor – Textile Manufacturer – Surat

This loan helped me fulfill bulk export orders on time. Flexible terms made repayment easy & there were No hidden charges, smooth process, and quick disbursal.

Founder – Leather Goods Manufacturer – Kanpur

Expanding my supply network seemed tough, but Credlix's hassle-free loan process made it possible!