IFFCO Kisan Finance's MSME Loans

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 updation, 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…

MSME Loans is a secured loan offering with fast-track loan approvals launched in 2023-24 by IFFCO Kisan Finance Limited (IKFL), a non-deposit taking, systemically important Non-Banking Finance Company (NBFC-ND-SI) registered with Reserve Bank of India (RBI), designed to support SMEs grow, expand and meet their working capital requirements, with special & tailored for women entrepreneurs.

How is it being implemented?

Under this Scheme, direct loans are provided to,

MSMEs in manufacturing, services or trading
Self-Employed Professionals such as practicing Doctors, Chartered Accountants (CA), Company Secretaries (CS), and Architects
Self-Employed Non-Professionals

What’s on offer?

I. Product

Term Loan
Ticket Size: Likely ₹1 Lakh to ₹25 Lakhs. For more information on whether IKFL lends more, please contact them via means mentioned below
There will need to be a co-applicant

II. Purpose:

Acquisition of or investment in fixed assets
Working capital requirements

III. Borrower Type:

Individuals, Sole Proprietorship, Partnership Firm, Limited Liability Partnership (LLP), Private Limited Company, Public Limited Company

IV. Security or Collateral or Guarantee or Insurance

Primary Security: There may be primary charge on assets financed under this Scheme
Collateral Security: Residentials & commercial properties that are self-occupied, rented, vacant, open commercial plots
Guarantee: Required. For more information around this, please contact IKFL via means mentioned below
Insurance: For more information around this, please contact IKFL via means mentioned below

V. Interest Rate

May range between 8% – 30%
Women entrepreneurs are eligible for subsidized interest rates under government support. For more information around this, please contact IKFL via means mentioned below

VI. Processing Fee

Upto 3% + GST + additional upto ₹10,000 for documentation

VII. Margin Money Requirement

For more information around this, please contact IKFL via means mentioned below

VIII. Tenure, Repayments & Pre-Closures

Tenure: 2 to 12 years

Repayments: The repayment schedule is arrived at based on the loan amount and the repayment capacity of the borrower
Pre-payment & Foreclosure Charges
- Loan Foreclosure Charges & Prepayment/Part Payment Charges: 3% of Outstanding Unbilled Principal at foreclosure or every instance of part-payment

IX. Turnaround Time

Loan application is paperless and loan approval happens in 24 hours

Interested? Read ahead to check your eligibility….

I. Are you between 21 and 60 years old?

II. Are you an MSME having a valid Udyam Registration Certificate?

If your answers to the questions above are an emphatic YES, you are all set to avail IKFL’s MSME Loans!

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

I. Details around achievements of this Scheme don’t seem to be available in the public domain

So, now, how should you go about it?

I. For submitting application:

Click on Apply Now here
Once you have finished applying, representatives from IKFL team will analyse the details and call you for providing more details. You should also upload the necessary documents as well

II. For indicative list of documentation required, scroll down here to get to MSME Loans FAQs | What all documents are needed for eligibility for MSME Loans?