Eligibility & Requirements

What is an MSME loan?

MSME loan stands for Micro, Small, Medium Enterprise loan which is given to the Micro, Small& Medium Enterprises who fit according to the definition of the Ministry of Micro, Small & Medium Enterprises. These loans are for their various business needs like working capital, business expansion, equipment purchase etc.

Each borrower is accessed based on their financial, business and other credit parameters set by each of the lending financial institutions. Credit parameters includes bureau scores, past bounces, banking etc.

Yes, new to credit customers are also eligible for loans subject to they meeting other parameters.

Yes, bureau score is an important parameter however it’s not the only parameter that the customer ‘s eligibility is assessed. Many financial institutions including us, have other criterias based on which the eligibility decision is done. However, bureau scores below 400 is not eligible as per our credit parameters.

Yes. However, this may be a critical credit parameter for many lending institutions, including us.

Yes, Niyara Capital as an institution encourages women entrepreneurs to apply for business loans and fulfil their capital requirements.

Yes, we do provide loans in rural and semi- urban areas based on our branch presence or our partner lending institutions branch prescence.

For Micro loans (up to INR 3Lacs), there are other surrogate income calculations to assess eligibility. However, over a certain limit, formal income proofs will be necessary.

No, GST registration is not mandatory to apply for a micro loan. However, for loans above a certain limit, GST registration will be mandatory. 

Application Process

What documents are required to apply for a loan?

KYC of borrower and co-applicant, business registration proof, 6 months bank statement, co – applicant details , udyam registration (if any), details of property ownership of applicant or co-applicant, income tax filings etc are required by various lending institutions depending on the loan and their lending criterias.

Typically, micro loans are disbursed within 24 to 48 hours. For Small and Medium enterprises secured loans, the process may take from 3 to 5 working days, depending on lending financial institution.

Yes, if your requirement is less than INR 3Lacs.

Yes, you can contact our nearest branch office for any such assistance.

You will be notified by our Sales team and also receive alert about the same.

If any such situation arises, you will be notified about the same along with the reason of rejection.

Yes, you can reapply for a loan which had earlier been rejected provided you fulfil the requirements for the loan disbursal.

Loan Features & Benefits

What is the minimum and maximum loan amount?

For Micro loans, the minimum amount is INR 15,000 and maximum amount is INR 3,00,000.

For Micro loans, no collateral is required.

Loan amount is based on the eligibility criteria primarily which is based on calculation of your EMI paying capability.

Minimal one-time processing fee is charged on the loan amount at the time of disbursement by most lending institutions.

You can apply for another loan by preclosing your previous loan.

Repayment & Closure

What tenure should I choose for my loan?

You should choose a tenure which aligns with your expected future cashflows allowing you to repay the loans without any hassle. 

Yes, we do allow our borrowers to pre close their loans without any penalty. 

ENACH, QR Code payment, cheque and in exception cash payment.  

Yes, a penalty will be charged for late EMI payments as the lending institution has to manage its cash flows. Late or non-payment of EMI causes issues and hence a token penalty is charged per instance of delay or non-payment. 

If an EMI payment is missed, penalty as explained above will be charged and as per RBI regulations, the delay will be reported to all the credit bureaus. This may in turn reduce your bureau scores.