MSME loans in India provide tailored financing for micro, small, and medium enterprises to support working capital, expansion, and equipment purchases. Key government-backed schemes include Mudra loans (up to ₹10 lakh), CGTMSE (collateral-free up to ₹200 lakh), and CLCSS for technology upgrades. Loans are available via banks/NBFCs, often with lower interest rates and, in some cases, with government subsidies. 

Key MSME Loan Schemes and Options

• Pradhan Mantri Mudra Yojana (PMMY): Offers loans up to ₹10 lakh for non-farm/non-corporate small businesses.
• CGTMSE Scheme: Provides collateral-free loans up to ₹200 lakh for new and existing MSMEs.
• CLCSS (Credit Linked Capital Subsidy Scheme): Offers a 15% subsidy on institutional credit for technology upgrades, with loans up to ₹1 crore.
• PMEGP (Prime Minister’s Employment Generation Programme): Aims at generating employment through new enterprise setup.
• Commercial Bank/NBFC Loans: Various banks offer customized MSME loans for working capital, business expansion, and purchasing machinery. 

• Collateral-Free Options: Many schemes like CGTMSE and MUDRA do not require collateral.
• Lower Interest Rates: Government-backed loans often have competitive, subsidized interest rates.
• Fast Approval: Digital, simplified, and quick loan disbursement, sometimes within 24 hours.
• Purpose: Funds can be used for purchasing raw materials, buying equipment, renting space, or hiring staff. 

• Eligibility: Micro, small, and medium enterprises (manufacturing or services) with valid Udyam Registration.
• Documents: Udyam Registration Certificate, PAN Card, Aadhaar Card, GST registration, bank statements (last 6-12 months), and financial statements (balance sheet, P&L). 

• Online Portals: Apply through the official PMEGP portal.
• Banks/NBFCs: Apply directly via banks like HDFC Bank, Union Bank, Kinara Capital, or Axis Finance.