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MSME Loans

Are you self-employed or a small business owner? Apply for our MSME Loan online in India and take your business to new heights.

Purpose of the loan

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Working capital for existing business

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Term Loan for expansion of existing business

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About MSME Loan

At Equitas, we understand the unique challenges faced by the Self-Employed and MSMEs in accessing formal finance, especially for significant capital requirements. Recognizing the pivotal role of the “Missing Middle” in India's economic growth, our MSME Loan caters to this segment with specially tailored financial solutions.

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Application Process & Timeline

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Notification of Decision: Communication of sanction/rejection within specified timelines, based on the credit limit applied.

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Complete Documentation: Ensure your application is accompanied by all necessary documents.

Charge Description

Particulars

Processing Fee

Upto 2% of the facility amount

Proposal Login Fee (Non refundable)

Rs. 5000/-

Renewal / Review Fee for Existing cases

Upto 2% of the facility amount

Commitment Charges in case quarterly average utilisation in CCOD account is < 60%

0.5% p.a. on the difference between the actual utilisation and average utilisation of 60% for the quarter

Take Over/ Pre-closure Charges (full pre-closure)

Working capital -5% of the Sanctioned amount Term Loan - 5% of principal outstanding

Term Loan part pre-closure

Upto 5% on the principal amount prepaid

Overline charges in OD/CC (utilisation above drawing power)

Upto 24% p.a. of the limit overdrawn above drawing power from the date of Overline till the date of regularisation of limits

Penal Charges for limit expired Temporary Overdrafts (TOD)

Upto 24% p.a. on the utilised limit till the date of regularisation of limit

Penal Charges for Term Loan

Upto 36% p.a. on overdue instalment due but not paid till overdue amount is regularised

Incremental Interest on sanctioned Temporary Overdrafts (TOD) & Adhoc limit

Upto 2% p.a. on the sanctioned TOD & Adhoc limit utilisation till the facility is regularised

Conversion Charges for switching loan from fixed to floating rates or vice versa,

Term Loan: One-time charge of 0.25% on principal outstanding or Rs.5000/- whichever is higher Working capital: One-time charge of 0.25% on sanction amount or Rs 5000/- whichever is higher

Working Capital: Penal Charges for Non-submission of Stock Statement / covenant not complied /Renewal docs not submitted / Property or stock insurance not submitted

Upto 24% p.a. on the utilised limits till the conditions are complied

Term Loan: Penal Charges for Non-Submission of property insurance / covenant not complied

Upto 24% p.a. on the principal outstanding till conditions are complied

Commission on LC- Usance

Upto 1.5% p.a. on Usance LC for first 3 months: Minimum of Rs. 2000/- Additional 1.5% for LC Usance period beyond 3 months but within 6 months: Minimum of Rs. 2000/-

Commission on LC- Sight

Upto 1% p.a. on LC value- Minimum Rs.1500/-

LC Text Amendment Charges

Rs.750/- per amendment

LC Value & Tenure Amendment

Will be charged as LC issuance charges plus amendment charges as above

LC Bill Handling charges

Rs.750/- per Bill

LC Bill Acceptance charges

Rs.750/- per bill

Discrepancy charges

Rs.750/- per bill

Stamp charges

Actual

SFMS Charges

Actual

LC Cancellation charges

Rs.1000/-

LC Payment commission

0.75% p.a.

LC Devolvement

20% up to 90 days 24% Above 90 days

Issuance of Bank Guarantee- Performance Guarantee

1.5% p.a. on BG amount Minimum of Rs. 1500/-

Issuance of Bank Guarantee- Financial Guarantee

2.0% p.a. on BG amount Minimum Rs. 2000.

BG Issuance Handling Charges (Courier Charges extra)

Rs.200/- (Courier charges should be separate)

Text Amendment Charges

Rs.500/- per amendment

Increase in Tenure or Value

Will be charged as BG issuance charges

BG Claim handling charges

Rs.500/- per claim

BG Cancellation charges

Rs.1000/-

ROC Filing charges

Actuals as applicable

Issuance of Solvency Certificate

0.5% of solvency certificate value (Min of Rs 1000/- and max of Rs 10000/-)

BG Invocation

20% up to 90 days 24% Above 90 days

CERSAI Charges (Stock/ Receivables/ Plant & Machinery and Collateral Security)

Rs.100/-

Stock and Receivables Audit- External

Rs. 10000/- Metro Locations Rs. 6000/- Other Regions

Credit Shield Insurance

Actuals as applicable

Stock Insurance

Actuals as applicable

Property Insurance

Actuals as applicable

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Schedule of Charges

Account Features for CC/OD Product code

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Interest Rate

The Interest Rates for MSE segment is linked to External Benchmark Rate- Repo Rate, published by the Reserve Bank of India.

Working Capital

Up to 16.00% p.a

Term Loan

Upto 16.75% p.a

*Taxes as applicable will be additional and subject to change from time to time Notification of Sanction/Rejection will be communicated to you , within two weeks in case your application is for a credit limit or enhancement in existing credit limit up to Rs. 5 lakhs ; within 3 weeks in case your application is for a credit limit or enhancement in existing credit limit above 5 lakhs and upto 25 lakhs; and within 6 weeks in case your application is for a credit limit or enhancement in existing credit limit above 25 lakhs from the date of receipt, provided your application is complete in all respects and is accompanied by documents as per `check list’ provided.
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