4 Things to Know Before Taking MSME Loans

Stay tuned to get every day updates in 60 seconds
Entrepreneur Staff
1 min read

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

There is no second opinion that the Micro, Small and Medium Enterprises (MSME) sector is the backbone for developing nations across the globe. However, the sector is facing plenty of challenges, with access to affordable credit being the most crucial. Sanjay Sharma, Managing Director of Aye Finance gives a sneak peek into some important tips one needs to know before taking MSME loans.

1) Before taking micro loans, one should check the terms including interest rates, charges deducted and installments, among others.

2) Check the involvement of middlemen. While taking MSME loans, a substantial portion might go to the middlemen which should is not encouraged.

3) Check the collateral which is being given to the lender and your rights as a loan-taker.

4) Ensure that the data one is giving is safe and protected.

Here's the "news that entrepreneurs can use". Know what's trending in the Indian business world in 60 seconds.  

More from Entrepreneur

Get heaping discounts to books you love delivered straight to your inbox. We’ll feature a different book each week and share exclusive deals you won’t find anywhere else.
Jumpstart Your Business. Entrepreneur Insider is your all-access pass to the skills, experts, and network you need to get your business off the ground—or take it to the next level.
Are you paying too much for business insurance? Do you have critical gaps in your coverage? Trust Entrepreneur to help you find out.

Latest on Entrepreneur

Entrepreneur Media, Inc. values your privacy. In order to understand how people use our site generally, and to create more valuable experiences for you, we may collect data about your use of this site (both directly and through our partners). By continuing to use this site, you are agreeing to the use of that data. For more information on our data policies, please visit our Privacy Policy.