Q1. What is SME loan and how is it different from MSME loan?

Ans: SME loan is for Small and Medium enterprises, while MSME loans also incorporate the Micro Enterprises into them. The two are used interchangeably by most lenders.

Q2. How to apply for SME loan online?

Ans: It is simple to apply on My Mudra. You can apply on My Mudra by entering your business information, checking the offers, adding documents and getting instant loan approval.

Q3. What is the typical SME loan interest rate in India?

Ans: It’s from 9% to 24%&ensp;based on your credit profile and the lender.

Q4. Who is eligible for MSME loan in India?

Ans: Registered companies that have been operational for 1 to 2 years&ensp;and a reasonable credit score can apply.

Q5. Which bank is best for MSME loan?

Ans: SBI, HDFC, Axis, and Bajaj Finserv offer competitive SME loan schemes. Use My Mudra to compare them in one place.

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What is SME (Small and Medium Enterprise) Loan?

Understand what is SME loan, its meaning, benefits, eligibility & interest rates. Learn how to apply online for SME loans in India with My Mudra.

Anjali Singh

Assistant Manager

Published Date:Jun 20, 2025

Updated Date:Apr 4, 2026

Frequently Asked Questions

Anjali Singh

Assistant Manager

Hey there, I'm Anjali Singh. With over 6 years of experience in finance, I specialize in creating content on banking, loans, and financial planning. My goal is to simplify complex financial topics and help readers make informed decisions through my articles.

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What is SME (Small and Medium Enterprise) Loan?

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"Check Your Loan Eligibility in Minutes!"

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