What are the seven essential facts about MSME loans?

Small and medium-sized businesses in India depend on MSME loans to survive. Here are seven facts about them that you need to be aware of:

1. The applicant's age, income, turnover, ITR, and business history are among the eligibility requirements.
2. The loan eligibility of an applicant is based on factors such as past repayment behaviour, annual revenue, and financial commitments.
3. Applicants must submit a number of financial records to demonstrate their company's stability.
4. They are collateral-free, thus the borrower doesn't need to put up anything as security.
5. Many lenders provide completely digital processes, enabling customers to use them from home.
6. MSME loans include adjustable repayment schedules that the borrower can select according on their monthly spending plan.
7. The applicant's income, Debt To Income ratio, credit score, and other factors affect the interest rates for MSME loans.