Aavas MSME Loan

Disclaimer…before you read ahead!

The information contained herein is of a general nature and for information purposes only, with the intent of raising awareness around various resources, schemes etc. available for women entrepreneurs in India. It is not intended to address the circumstances of any particular individual or entity. It does not purport to be all-inclusive or necessarily contain all the information that may be relevant for the reader, and may be subject to updating, revision or amendment. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to remain accurate in the future. The reader, therefore, is required to exercise their discretion; and not act on such information without appropriate professional advice after a thorough examination of the particular situation.

Furthermore, we are not a lender and are not authorized by the Reserve Bank of India to act as one. By disseminating the information contained herein, we are not soliciting any borrower or customers for the company or organization mentioned herein nor do we intend to syndicate any capital for the reader of this article.

About this scheme..

Aavas MSME Loan, launched in October 2017, is a secured loan offering by Aavas Financiers Ltd., a Housing Finance Company (HFC) registered with Reserve Bank of India and National Housing Bank, tailored to meet the financial needs of MSMEs in India.

How is it being implemented?

Under this Scheme, direct financial assistance in the form of loans is given exclusively to,

• MSMEs including the ones located in remote and rural India

What’s on offer?

I. Product

• Term loan
• Ticket Size: ₹1 Lakh – ₹1 Crore
  • Loan amount would be around 50% – 60% of the collateral value as described below

II. Purpose:

• Acquisition of or investment in fixed assets
• Working capital requirements

III. Borrower Type:

• Sole Proprietorship, Partnership, Limited Liability Partnership (LLP), Private Limited Company
• For more information around this, please contact Aavas Financiers via means mentioned below

IV. Security or Collateral or Guarantee or Insurance

• Security: Primary charge on assets created out of Lender’s finance
• Collateral: Residential property is a must even if the borrower is ready to give commercial property as additional collateral
• Guarantee: For more information around this, please contact Aavas Financiers via means mentioned below
• Insurance: For more information around this, please contact Aavas Financiers via means mentioned below

V. Interest Rate

• 13% onwards

VI. Processing Fee

• Upto 4% + GST

VII. Margin Money Requirement

• 40% – 60% of the value of collateral as mentioned above

VIII. Tenure, Repayments & Pre-Closures

• Tenure: 2 – 7 years
• Repayments: EMIs
• Pre-payment & Foreclosure Charges: For more information around this, please refer here

IX. Turnaround Time

• Typically 7 – 10 days from submission of application
• Doorstep service is provided

Interested? Read ahead to check your eligibility….

I. Are you a resident of India and a registered or authorized person of the business for which you needs this loan?

II. Are you above 18 years at the time of application and will you be below 80 years of age at the time of loan maturity?

III. Has your business been in operation for at least 3 years?

IV. Can you provide the Income Tax Return for your business for at least 1 year?

If your answers to the questions above are an emphatic YES, you are all set to avail loan under Aavas MSME loan!

So…how big is this scheme and what has been done so far?

• I. As of September 30, 2024, Aavas Financiers had ₹3,300+ worth of loans outstanding across nearly 46,000 MSMEs

So, now, how should you go about it?

I. For submitting application:

• Please express your interest here and one of Aavas Financier’s executive will get in touch

OR

• Please visit one of Aavas Financier’s 372 branches spread across North, South, West & Central India

II. For information on documentation requirements, please scroll here

III. For any queries, please contact Aavas Financier’s via

• Toll Free Number: 1800 20 888 20

OR

• Tolled Number: 0140 6618888

OR

• WhatsApp: 91166-32180

OR

• E-mail: customercare@aavas.in

OR

• Leave a message online here by clicking on Suggestions/Query Tab here

OR

• Visit one of Aavas Financier’s 372 branches spread across North, South, West & Central India

Go on then…and do spread the word!

Sources:  

1. About Aavas MSME Loan
2. Aavas Financier’s Latest Credit Rating Report
3. Aavas Financier’s Annual Report 2023-24
4. Aavas Financier’s Latest Investor Presentation