MSME Loan Interest Rate

PROJECT LMSME 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.