Loans for Small And Medium Enterprises (SME) are business loans offered only to medium-sized enterprises. These loans are designed to suit the needs and requirements of SMEs. Small & Medium scale industries play an important role in the economic development of a country, employing vast numbers of people and helping to shape innovation. This loan segment has developed a lot for last several years.
Types of SME Loans
Secured Loans – After calculating your creditworthiness from banks you need to submit substantial collateral or guarantee. The rate of interest on these loans is lower.
Unsecured Loans –This type of loans does not require any property as collateral but it is solely depends on the creditworthiness & existing healthy relationship of the borrower with the bank. The rate of interest on these loans is relatively higher than Secured Loans.
Reasons to avail SME Loans are Business Start-up / Expansion of an existing Business / To Increase Working Capital / Purchase of Machinery.
