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.