MSME Loans are loans for small and medium enterprises, registered with the MSME Ministry of the Govt of India. MSMEs often face the problem of a lack of funds to expand their business. MSME loans help them in expanding and becoming self-sustainable. Certain lenders, offers MSME loans up to Rs 50 lakhs, based on the eligibility.

To understand who qualifies as an MSME, the table below will offer you comprehensive information:

Classification	Micro	Small	Medium
Manufacturing Enterprises and Enterprises rendering Services	Investment in Plant and Machinery or Equipment: Not more than Rs.1 crore and Annual Turnover ; not more than Rs. 5 crore	Investment in Plant and Machinery or Equipment: Not more than Rs.10 crore and Annual Turnover ; not more than Rs. 50 crore	Investment in Plant and Machinery or Equipment: Not more than Rs.50 crore and Annual Turnover ; not more than Rs. 250 crore

What is the eligibility of an MSME Loan?

Here are the common criteria for an MSME loan:

• Age Criteria: Minimum 22 – 65 years 
• In case of Individuals: Individuals who have been engaged in the current business for at least three years with a total of five years of business experience.
• Company Type: Self-employed individuals, proprietors, private limited companies, and partnership firms working in manufacturing, trading, or services.
• Business Turnover: At least Rs. 10 lakhs per year
• Business Vintage: Minimum 2 years in profit
• Business with a Minimal Annual Income (ITR) of Rs. 2 lakhs per year

Additional Read: Top Reasons Why MSME Loan is The Perfect Options for Small Business Owners