- November 24, 2024
Contents
Introduction
MSMEs have always made a very significant contribution to the national economy in terms of employment generation, exports, innovation, and growth in GDP. However, one of the major challenges that remain with the owners of MSMEs has been how to get timely as well as adequate financing. It is this gap that many financial institutions help bridge but out of them, NBFC forms the major component.
Let’s discuss the top 10 finance companies in India that would provide financial solutions to MSMEs in the year 2025.
Kinara Capital is an NBFC that offers collateral-free business loans between ₹1 lakh and ₹30 lakhs by disbursals within 24-hours of making a loan application. The company gives up-front discounts on loans to women-owned MSMEs to empower and motivate women entrepreneurs. The mobile application, myKinara App, supports digital end-to-end Kinara capital business loan application processes that are easy and hassle-free for its users.
They provide business loans from ₹1 lakh to ₹30 lakhs and the loan gets disbursed in just 24-48 hours with reasonable interest rates. Any business owner can apply for a business loan through their mobile application. They have assisted several MSME business owners till date.
HDB Financial Services has expertise in offering secured and unsecured loans for various customer segments, including MSMEs. Under MSME loans, HDB Financial Services offers working capital equipment purchases with rapid sanction, attractive interest rates, minimal documentation processes, and hassle-free disbursement processes.
Tata Capital provides business loans up to ₹75 lakhs, which are granted on a collateral-free basis. The company is very transparent about its loan processing and hassle-free in terms of customer service. With an extremely wide reach, Tata Capital reaches the MSME sector everywhere in urban and rural areas.
They offer secured business loans of ₹10 lakh to ₹5 crores. The process of a loan is made speedy and transparent with full flexibility in repayment options, which will suit the needs of the borrower. It operates over 1,400+ branches in India, ensuring both urban and rural outreach, with a strong digital presence for easy loan application and management.
Fullerton India offers business loans up to ₹50 lakhs in flexible repayment and with minimal documentation. The company provides finance on an application-specific basis for the realization of the specific needs of business owners and helps the MSME business owners compete in the marketplace and the overall expansion.
A significant NBFC that offers both secured and unsecured loans for diverse financial needs. ABFL caters to MSME businesses by helping them with working capital requirements, scaling up activities, or acquisition of new equipment/machinery with the sanction of a loan up to ₹1 crore. They also provide superior processing of loan products and fine customer relationship management.
It specializes in asset financing for MSMEs, offering a variety of loan products such as working capital loans, business loans, loans against property, and machinery loans. EFL serves over 50,000 customers and operates through 200+ branches across India. Around 40% of the machines funded by EFL are green machines, aligning with environmental goals.
This NBFC provides business loans to SMEs, but apart from the strong features, one notable point that Shriram City can highlight is a customer-friendly approach along with flexible terms. It sanctions loans up to ₹1 crore and thus fulfills the requirements of different businesses.
They provide business loans with easy repayment options without any collateral, with minimal documentation. They are processing the business loan with easy and quick disbursal which will support MSME business owners to use them for multiple purposes, such as purchasing machinery, expanding operations, or managing working capital
Conclusion
As MSMEs are providing employment opportunities mainly in the rural areas, an increase in exports, and growth in innovation where the overall support is contributing to GDP growth. However, small business owners have problems with access to capital affecting their growth potential. The gap, especially in accessing capital, has been supported by NBFCs through providing customized financial solutions to MSMEs. Kinara capital loan for MSMEs is one of the best solutions available in the market for MSMEs who are eager to grow their business.
There are quite a few NBFCs that not only provide fast and speedy business loans with flexible repayment periods but also help and educate SME customers on how they can efficiently make use of the capital better in their business. Some of the NBFCs offer additional assistance for their MSME customers by conducting free, digitized workshops where they help customers on a variety of subjects related to business growth.
