How small business loans are good initiative of Muthoot Fincorp?

By | November 15, 2021

Are you applying for a small business loan to meet your financial requirements? If so, it is advisable to apply for SME loans through Muthoot FinCorp. It offers to fuel your business with SME loans and achieve all your dreams. The small business loans provided by Muthoot Fincorp come with flexible tenures, easy repayment options, and minimum documentation based on RBI’s guidelines. The process of applying for a small business loan is easy and convenient. 

Here are the top features and benefits of getting SME loans from Muthoot Fincorp:

Loans designed to meet all your needs

The best part about Muthoot Fincorp is that it offers loan products based on the specific needs of borrowers. There are easy and simple products for self-funded small-scale businesses that are not able to access credit anywhere else. With the ambition to serve entrepreneurs at the bottom of the pyramid, there is a variety of schemes based on your business lifecycle and requirements. 

EDI loans: They are uniquely designed to cater to the needs of small traders viz, Kirana shops, medical stores, roadside tea stalls, or florists. It comes with ease of daily instalments with doorstep collection, ensuring protection from the burden of heavy repayments. 

  • Minimum loan amount: Rs. 15000/- 
  • Maximum loan amount: Rs. 100,000/- 
  • Loan tenure: up to 122 days. 
  • No-preclosure charges.
  • Doorstep payment collection. 

 

  • EMI loan: It is a type of loan that aims to cater to the requirements of traders who have routine bank transactions and a working capital cycle ranging from 15 days to 2 months.   

 

  • Minimum loan amount: Rs. 100,000/-
  • Maximum loan amount: Rs. 300,000/- 
  • Loan tenure: 12/24/36 Months. 
  • No-preclosure charges.
  • Monthly repayment frequency
  • No prepayment charges
  • Min CIBIL score 650 

 

  • Banking surrogate program: This type of loan is designed for business owners who are confident about their business and can become more successful shortly. It enables the borrowers to achieve bigger dreams. 

 

  • Minimum loan amount: Rs. 300,000/-
  • Maximum loan amount: Rs. 500,000/- 
  • Loan tenure: 12/24/36 Months. 
  • No-preclosure charges.
  • Monthly repayment frequency
  • No prepayment charges

Insurance coverage 

Another benefit of getting an SME loan from Muthoot Fincorp is that it offers protection through Credit Shield.  It means that the nominee of the loan will not have to worry about repayments in case of unfortunate events. The Credit Sheild offers easy and quick disbursal, the interest rate charged on reducing balance, instant insurance coverage, loan and life cover under a single insurance policy, and daily or monthly instalments. 

Easy repayment options

All the loans provided by Muthoot Fincorp come with easy repayment options. You do not have to leave your Kirana shop or counter as the repayment facility is available at your doorstep if you opt for EDI small business loans. Besides, you can also choose to repay your loan through modes such as NACH, bank transfers, online payments, and payment at the branch. 

Flexible repayment tenure with no preclosure charges

Muthoot Fincorp’s SME loans come with flexible loan tenures.  The repayment tenure depends on the loan you need for your business.  For instance, daily instalments under EDI loans can make repayments in 122 days in 104 instalments. Whereas for loans with monthly instalments, loan tenures can range from 6 months to 36 months. 

Relaxed eligibility norms

SME loans by Muthoot Fincorp are designed to meet the ever-growing aspirations of small businesses. The eligibility criteria to get a small business loan are kept at a bare minimum.  

Here are the requirements you will need to meet while applying for an SME loan: 

  • You must be at least 21 years old while applying for a small business loan or 65 years old at the end of the loan tenure. 
  • It is mandatory to have a co-applicant to secure a small business loan. 
  • You must have the same business premises for at least two years. 
  • You must have an active bank account. 
  • The minimum CIBIL score required to get a loan is 600. Keep in mind that the higher your credit score, the better your chances of securing better rates. 

Documents required to get a small business  

SME loans from Muthoot Fincorp need minimal documentation, yet the requirement is based on the RBI’s guidelines. While submitting your loan application, you will need to provide the following documents: 

  • A passport-sized photograph
  • Identity proof: Ration Card, Passport,  Trade License, GST Certificate, or Rent or lease agreement. 
  • Age proof: Passport, Aadhaar Card, PAN Card, or Voter ID Card. 
  • Income Proof: IT Returns, bank statements, profit and loss account,  the audited balance sheet.

So visit your nearest Muthoot FinCorp branch and fuel your business’s needs with an easy and safe SME loan.

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