Who Is Eligible For Msme Loan

Eligibility for an MSME loan depends on the return on investment and the profitability of the project that is to be set up. Any lender you approach will approve your loan if they are assured repayment. The general conditions that lenders look at are technical/economic viabilities, promoters contribution and collateral securities. Your business will have to be involved in either of the two classes - manufacturing or service sector. Investment limits for micro, small and medium enterprises vary based on the stage of where the business is at now and the size of the business. 

For the manufacturing sector, 

Micro enterprises - Less than Rs. 25 lakhs

Small enterprises - More than Rs. 25 lakhs and less than Rs. 5 crores

Medium enterprises - More than Rs. 5 crores and less than Rs. 10 crores

For the service sector,

Micro enterprises - Less than Rs. 10 lakhs

Small enterprises - More than Rs. 10 lakhs and less than Rs. 2 crores

Medium enterprises - More than Rs. 2 crores and less than Rs. 5 crores