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Products Offered in MSME Business Loan

SUPPLY CHAIN FINANCE

Supply Chain Finance is a collateral free short term working capital to dealers / suppliers (MSME's) of both buyer and seller side, having trade relationships with mid-large corporate.

All transactions in Supply Chain Finance are linked to a base document (Invoice), Purchase Orders (PO), or Delivery Challans between the Corporate and the dealers / suppliers of both buyer and seller side.

WHY DO YOU NEED SUPPLY CHAIN FINANCE SOLUTIONS?

Offers adequate working capital to grow business volumes.

Quick payment to suppliers.

Expand reach with last-mile retailers, distributors and suppliers getting covered.

Digital process: Reduce paper work/Turnaround time & overall cost.

Collateral free loan with flexibility in repayment terms.

WHY CHOOSE DHANAMS 'SUPPLY CHAIN SOLUTIONS' ?

Digital Process

COMPLETE DIGITAL PROCESS

Right from onboarding till financing, the entire process is paperless.

Wide Coverage

WIDE COVERAGE

Our Financing solution reach deep in the supply chains(downstream & upstream) of corporates.

Easy & Fast

EASY & FAST FINANCING PROCESS

Our efficient technology enables easy & automated workflows for reconciliation of payment to invoice.

Hassle Free

HASSLE FREE FINANCING

No investment required in people, process or IT to implement our financing solutions.

FAQs
To be eligible for our business loan, applicants must fulfil the five fundamental criteria. Once you meet all the business loan eligibility requirements, you will need to submit a set of documents to complete the application process. Eligibility for the MSME loan is that the applicant's company must have filed Income Tax Returns for the previous year. Additionally, there should be no record of loan defaults under the applicant's or the business's name. The loan is specifically intended for establishing firms in the service or manufacturing sectors. Furthermore, the applicant must be at least 21 years old and belong to one of the following categories: Sole Proprietorship, Self-Employed Individuals, Private Limited Companies, or Partnership Firms

The highest loan amount available for SME/MSME loans varies depending on factors. At Dhanam Finance, MSME online loans can range from a few lakhs to several crores of rupees. The business may operate within either the Manufacturing Sector or the Service Sector.

Business Size in Manufacturing Sector:

  • For Micro-level businesses, the threshold is set at exceeding 25 lakhs.
  • Small-scale businesses are defined as those exceeding 5 crore, while Macro-level enterprises surpass 10 crore in revenue.

Business Size in Service Sector:

  • Micro-level businesses must exceed 10 lakhs in revenue.
  • Small-scale enterprises surpass 2 crore, while Macro-level businesses exceed 5 crore in revenue.
SME/MSME business loans aim to support businesses in scaling operations, investing in infrastructure, purchasing equipment, and meeting working capital needs. SME/MSME loans are available to small and medium-sized enterprises, including both existing businesses and startups, across various sectors. Eligibility criteria typically include factors such as the business's annual turnover, years in operation, creditworthiness, and adherence to regulatory requirements. Additionally, lenders may consider the business's financial stability, repayment capacity, and potential for growth.

To apply for an SME loan, one requires the following documents:

  • Passport-size photographs of the applicants and co-applicants.
  • Business address proof such as a rent agreement, property tax receipts or utility bills in the business’ name.
  • Bank Statements of the last six months to analyse the financial transactions and cash flow of your business.
  • Income Tax Returns document to verify tax compliance and income.
  • Certificate of business establishment depending on the type of entity.
  • KYC documents which may include an Aadhaar card, Passport, Voter’s ID card, PAN card etc.
The CIBIL score is one of the most important factors for determining MSME loan eligibility. The CIBIL score and credit history can vary, depending on various factors such as the lender, the type of business, the loan amount and the scheme that one is choosing. Lenders usually evaluate the CIBIL score based on one’s repayment history and existing debt obligations. It is important to remember that a higher CIBIL improves one’s creditworthiness and improves your chances of securing an SME loan.
Dhanam Finance offers the best SME loans for financing your various business needs. We provide a wide range of loan schemes to Micro, Small and Medium (MSME) enterprises. To ease the process further and make funding more accessible, you can even apply for an SME loan online on Dhanam Finance’s website or mobile application. With swift loan processing, higher loan amounts, and a variety of different loan schemes, Dhanam Finance is one of the best options for securing funding for your business projects.
SME loans or MSME loans are specifically designed to meet the requirements of small or medium-sized businesses, whereas business loans cater to the diverse needs of businesses of all sizes, from startups to large corporations. SME business loans are tailored to support the growth of smaller enterprises, offering smaller loan amounts, lower interest rates, and more flexible repayment terms due to the lower turnover and limited assets of these businesses. In contrast, business loans provide financial support for enterprises of varying sizes, offering higher loan amounts and catering to a broader spectrum of financial needs.
SME loans generally offer lower interest rates compared to other business loans. However, to secure even lower interest rates, consider obtaining SME financing from Non-Banking Financial Companies (NBFCs) like Dhanam Finance. NBFCs often provide SME business loans at more competitive interest rates compared to traditional government banks. Another option is to improve your business's creditworthiness by having a good credit history, solid financial records, and a well-designed business plan. This can help you qualify for lower interest rates, as lenders assess the risk profile of the borrower.