Glossary
Udyam Registration
What it means
Udyam is the online registration for micro, small and medium enterprises under the MSME Ministry. It is free, needs only Aadhaar and PAN, and gives the business an Udyam Registration Number.
Lenders use Udyam to classify loans as priority sector and to offer scheme benefits such as CGTMSE guarantee cover, lower processing fees and interest subvention. Registering before applying strengthens a business loan file.
Where it applies
Business Loan
Unsecured business loans from ₹2 lakh to ₹1 crore for proprietors, partnerships and companies, at rates from about 14% p.a., with tenures up to 5 years and minimal collateral requirements.
- Rate from
- 14.00% p.a.
- Up to
- ₹1 Cr
Machinery and Equipment Loan
Loans for new and used industrial machinery, medical and construction equipment, from ₹5 lakh to ₹5 crore, at rates from about 10.5% p.a., funding up to 90% of invoice value with tenures up to 7 years.
- Rate from
- 10.50% p.a.
- Up to
- ₹5 Cr
Working Capital Loan
Working capital facilities from ₹10 lakh to ₹5 crore, including overdraft, cash credit, dropline overdraft and invoice discounting, at rates from about 11% p.a., secured or unsecured.
- Rate from
- 11.00% p.a.
- Up to
- ₹5 Cr
More terms
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