What are the Most Popular MSME Loans from Indian Banks?
Here are some of the most popular MSME loans from Indian banks:
Punjab National Bank Mudra Loan Scheme
The loan allows unfunded individuals, proprietors or partnerships running small manufacturing units, fruit and vegetable shops, food service units, repair shops, small industries, etc. get funds for their business needs. The maximum loan amount is Rs. 10 lakh.
As it happens in the case of this loan, the Mudra Loan from Punjab National Bank is also trifurcated into three variants, Shishu, Kishore and Tarun, depending on type and size of business.
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Canara Bank Mudra Loan Scheme
Same features as that for PNB since both are Govt. of India’s Mudra Yojanas. Let us add a few more details in case you did not know: the loan amounts for the three loan variants are:
Shishu Loan: Maximum loan amount is Rs 50,000
Kishore Loan: Loan amount is from Rs 50,001 up to Rs 5 lakh
Tarun Loan: Loan amount is from over Rs 5 lakh to up to Rs 10 lakh
More details on this loan are here.
Bank of India Star MSME E-Rickshaw Loan Scheme
This loan helps transport operators in the micro category to buy e-rickshaws for commercial use. The loan can also be used for funding first-time battery replacement after one year. This loan is not available for subsequent battery replacements.
The maximum loan offered under this loan scheme is up to 80% of the on-road cost of the vehicle or 85% of the invoice cost, whichever is less. BOI sanctions this loan for the purchase of a maximum of three e-rickshaws per borrower.
More details are available here.
Canara Bank Doctor’s Choice Loan Scheme
This loan helps medical practitioners meet their capital expenditures or working capital expenses right from setting up a clinic, nursing home, hospital, pathology labs, etc. to purchase of equipment, vehicles, ambulance, etc. The maximum loan amount allowed is Rs 5 crore.
Punjab National Bank PNB Sanjeevani Loan
Same as Canara Bank’s Doctor’s Choice Loan, this loan helps doctors and medical practitioners meet their working capital requirements or capital expenditure right from setting up a clinic, nursing home, hospital or pathology lab to purchase of equipment, vehicles or ambulance. The maximum loan amount sanctioned by the bank for this loan scheme is Rs. 5 crore.
Canara Bank Trade Loan for MSME Units
This MSME loan helps businesses meet their working capital needs. Maximum loan amount is Rs. 10 crore. It can be availed as a Term Loan or as a Secured Overdraft.
The loan is meant for businesses in the MSME sector to meet their Working Capital needs.
The bank maintains that it offers a higher quantum of Canara Bank Trade Loan for MSME Units in the Working Capital loans segment as compared to other banks and financial institutions in the market.