Muthoot Finance Ltd Business/SME Loan

Overview

Muthoot finance falls under NBFCs (Non-Banking financial companies). The company has its headquarters in Kochi, Kerala, with more than 4,400 operating branches across the country. Muthoot Finance chiefly helps provide loans primarily to those with no access to a source of formal credit (loans given by rural banks, cooperative societies, and commercial banks for a particular period to meet their working capital requirements. 

Muthoot Finance Ltd Business/SME Loan and medium enterprises have gained significant importance in India as they contribute significantly to the country’s GDP. The MSME sector contributes significantly to the country’s socio-economic and entrepreneurship development, primarily in semi-urban and rural areas.

To grow a business steadily, funding becomes an imperative, without which things fall into complete laxity. Many companies provide loans to SMEs and MSMEs at a very reasonable interest rate. Moreover, the loans are very quickly sanctioned. Muthoot finance too offers loans for various business and personal purposes to meet the demands of various SMEs and MSMEs.

Muthoot finance falls under NBFCs (Non-Banking financial companies). The company has its headquarters in Kochi, Kerala, with more than 4,400 operating branches across the country. Muthoot Finance chiefly helps provide loans primarily to those with no access to a source of formal credit (loans given by rural banks, cooperative societies, and commercial banks for a particular period to meet their working capital requirements. 

If you are looking for more details regarding Muthoot finance business loans, then the following information will answer all your queries. We focused on the ROI, eligibility criteria, required documents, application process and a few FAQs.

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Highlights 

  • There are loans for all types of MSME and SME businesses depending on the sector it belongs to – manufacturing or service.
  • Applicants can get a business loan from Muthoot finance at a very competitive rate of interest.
  • The loan provided has insurance coverage as well.
  • Various repayment facilities are accessible depending on the loan scheme.
  • Any lender can repay the loan amount in full after 60 days where no charges are applied. 
  • Applying for the loan is hassle-free with minimum documentation so that an applicant doesn’t get into much trouble to get a loan sanctioned. 

Rate of Interest and Other Fees

Rate of interest – 12% p. a to 27 % p. a

Sanctioned amount –  Minimum Rs. 15,000 and maximum Rs. 8,00,000

Tenure of the loan –  starts from 6 months to 36 months

Applicable processing fees –  2% of the sanctioned loan amount and other applicable taxes.

Eligibility Criteria 

Most NBFC or other lenders have similar eligibility criteria for getting a loan sanctioned. If you are applying for a business loan in Muthoot Finance, then you need to meet the given criteria:

1.An applicant should be a citizen of India at least 21 years old, should not be younger than 18 years and more than 65 years.

2.Applicant must be a member of one of the following:

  • Self-Employed Individuals
  • Individual Proprietorship
  • Private Limited Companies
  • Partnership Firms
  1. Applicants should be micro-entrepreneurs like grocery shop owners, vegetable vendors, etc., or SMEs like tailors, electronic shops, etc.
  1. Applicant should have a good credit score which is very important for sanctioning a loan. So, generally, a credit score above 600 is considered to go for a loan eligibility criterion.
  1. There must not be any history of loan defaults in the applicant’s or his business’s name from any bank or financial institute.
  1. Your business set-up must be on the same premise for the last two years and have an active bank account.

Required documents

  • Duly filled application form and passport-sized photos of the applicant.
  • Address Proof – Rent agreement, utility bills. 
  • KYC papers of the applicant or the co-applicant. Passport, voter ID card, PAN card, Aadhaar card, driving license, telephone or water bills are reckoned as KYC papers. 
  • Certificate of the business establishment.
  • Deed of the partnership.
  • Bank information as well as bank statements for the last six months.
  • Income Documentation – financial documents including IT return for the last two years.
  • Audited/ provisional financials (Balance sheet, profit and loss account) of the previous two years. 

Read More: L&T Finance Holdings Ltd Business/SME Loan

Steps to apply

You can get your business loan in Muthoot Finance in 3 ways: 

Online application: Getting your loan sanctioned is relatively easy in Muthoot finance. You can visit their official website and fill in the required details. After that, you get a call from the customer department of Muthoot, who will explain to you the loan process. Then they will visit your home or your respective place to pick up the required documents and complete the procedures.

Visit the nearest Muthoot branch.: You can visit your nearest Muthoot branch if you find the online process complicated. Fill up the application form, submit all the required documents and wait till your loan gets sanctioned. 

Call the Customer Care: If you are still confused or want to know more details about the procedures to apply for one, call Muthoot Finance customer care at 1800 102 1616. They will assist you with all the details and guide you on how to apply for one. 

Muthoot Finance Business Loan Schemes

Muthoot finance offers different schemes based on one’s business. Muthoot Finance provides various schemes depending on your business lifecycle and requirements.

(EDI) Loan – Equated Daily Instalment 

Features:-This loan intends to satisfy the necessities of small brokers like Kirana stores, clinical shops, vendors, Florist, etc.

It is helpful for small traders as it won’t make a significant weight on them. Instead, they can reimburse consistently with doorstep assortment.

Sanctioned loan amount- The minimum amount sanctioned for this scheme is Rs. 15000, and maximum is Rs. 100000.

Tenure of the loan-122 days with 104 EDIs

Method of repayment-You can repay through online payment, bank transfer or doorstep collection.

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(EMI) Loans – Equated Monthly Instalment

Features: This scheme is helpful for people with regular bank exchanges and a functioning capital pattern of 15 days to 2 months.

It is to match the high yearnings of dealers and small proprietary.

Sanctioned loan amount- You can avail of a minimum amount of Rs. 1,00,000 and maximum Rs. 3,00,000

Tenure of the loan-12 months/ 24 months/ 36 months

Method of repayment-Automatic debit from your active bank account, Monthly Repayment Regularity

Applicable charges- 400 when a cheque fails. Other than that, no-prepayment and pre-closure charges.

CIBL score-650 or -1

Banking Surrogate Program

Feature-This loan is intended for entrepreneurs who are confident enough and know that they can climb to a higher level.

The scheme will assist entrepreneurs with putting resources into their organizations to try and develop more.

Sanctioned loan amount-Available sanctioned minimum amount is Rs. 3,00,000 and maximum is Rs. 5,00,000

Tenure of the loan-  6 months to 36 months

Method of repayment-The amount can be repaid through an automatic debit from your active bank account or available monthly repayment regularity.

Applicable charges- No prepayment and pre-closure charges.

Read More: Inditrade Capital Limited Businesss/SME Loan

Financial Income-Based Programme

Features-It is designed for business owners who have illustrated excellent results in terms of business transactions and income statements.

Sanctioned loan amount- With this scheme, you can get a minimum loan of Rs. 3,00,000 and to Rs. 8,00,000

Tenure of the loan-It is the same as the Banking Surrogate program -6 months to 36 months.

Method of repayment-The repayment method is quite simple. It gets automatically debited from your active bank account, or you may choose the Monthly Repayment Regularity.

Policy for granting business loans

  • On the off chance that the loans are given with no insurance security, like unsecured loans and other clean credits, more than customary consideration will be taken to see that such distinctions are allowed exclusively to firms/Companies of notoriety with credit value and history.

  • The interest rate is settled case-to-case basis, considering different variables like the expense of assets, operating costs, and the risk attached to the development. Yet the most significant loan fee chargeable will depend upon the roof according to the Fair Practices Code of the Company.

  • The company may outsource some of the activities associated with loans like obtaining credit applications/KYC check/levy assortment. The outsourcing agencies will be responsible for standard survey and periodical reviews to guarantee that they conform to the compulsory prerequisites under Labour regulations and other applicable guidelines and that the agreements of the arrangement entered into with the company are being followed.

  • The company may also sanction secured and unsecured loans to its employees and employees of its group companies as per their qualifications and additional agreements fixed occasionally.

MSME Business Loan products offered

Muthoot Finance has a business loan product called supply chain finance, a security-free short-term working capital for MSME’s suppliers.

Why do you need a change finance solution from Muthoot finance?

The supply change finance solution offered by Muthoot Finance is helpful in the following ways:

Complete digitalized process: Applicants don’t need to take care of so many papers as here, starting from the onboarding to financing; everything is paperless. 

Extensive coverage: It is not limited. Muthoot Finance supply change finance solutions reach Our Financing solution goes deeply to all downstream & upstream supply chains.

Hassle-free Financing process: With modern and up-to-date technology, the workflow is automated and hassle-free from any reconciliation of payment to invoice. 

Conclusion

MSME/SME loans have benefits like new entrepreneurs can avail of tax exemption for three years. The owner is not answerable to the bank when their business goes through a reasonable profit or suffers any loss as the start-up is solely responsible for it, and many more like that. 

If you want a financial solution for your business, then Muthoot Finance is India’s most trusted company. With Muthoot Finance, you can access various financial solutions that will help solve multiple customer demands. You get a quick loan disbursal, plentiful gold loan EMI programs and that too at a low rate of interest and an emphasis on customer satisfaction. Apart from that, your loan gets sanctioned with minimum documentation. 

Muthoot is a reliable brand, and getting a business credit from it tends to be a decent choice. Muthoot will assist you by beginning with little, and as your business continues to develop, it will offer more loan amounts to make your business bigger. To know more details on SME loans from Muthoot Finance.  You can email [email protected] or call at  +918886666821.

FAQ’s

Who is eligible for an MSME loan?

Is Muthoot finance business loans only for women?

What is the loan tenure for the business loan in Muthoot?

What is the difference between Muthoot Finance and FinCorp?

Is the Muthoot Finance business loan Safe?

Is Muthoot Finance government or private?

Is Muthoot Finance a bank?

Could I at any point prepay the Muthoot small business loan completely?

What is the maximum sanctioned business loan amount in Muthoot Finance?

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