The Indian government is promoting the small and medium-sized enterprise (SME) sector to assist this primarily unorganized sector, which employs more than 70 million Indians. As the industry grows, more money will be required to help these tiny enterprises scale up.
While banks have been ineffective in providing the necessary loans to help SMEs grow, this has provided an opportunity for the digital lending industry to support the country's booming SME sector. 
The traditional lending process has been revolutionized by financial technology (FinTech), which has made loans better accessible to the underserved and under-banked sectors. Banks are typically hesitant to lend to Micro, Small, and Medium Enterprises (MSMEs), and they are much more cautious during the COVID-19 period.
Small firms often have difficulty demonstrating collateral and hence are unable to obtain financing from these banking institutions. The development of FinTech lenders has been a boon to SMEs because the lending process is now entirely digital. This implies that funding is simple because the paperwork required is low, if not none at all.
SME loans are business loans that are solely available to small and medium-sized businesses. These loans are specifically designed to meet the needs and requirements of small businesses.You may like to read: Top 5 Best Agencies for a Bike Loan in India | Check Eligibility | Locate Offices
SME loans can be used to fund operating capital and/or capital expenditures for companies in the trading, production, and service industries. These loans are available to all small and medium businesses, as well as other entities, as specified by the MSMED Act of 2006, that have a certain turnover.
SME loans are loans provided by banks and other lending organizations to small and medium-sized businesses. Every bank/financial institution seems to have its own set of SME loan programs, each with its own set of terms of service. A one-of-a-kind program might be dedicated to assisting female entrepreneurs. Furthermore, the majority of these loans are issued with no security.
Check out below some top fintech companies and banks offering SME loans:
Aditya Birla Finance Limited (ABFL)
Aditya Birla Finance Limited ("ABFL") is the part of Aditya Birla Capital Limited. ABFL is one of the biggest non-banking financial services companies in India. To a diverse variety of consumers around the country, ABFL provides end-to-end lending, financing, and wealth management solutions. ABFL is a systemic risk non-deposit-taking non-banking finance company (“NBFC”) that is among India's top five privately diversified NBFCs by assets under management (AUM).
ABFL serves a vast range of consumers, including retail, HNI, ultra HNI, micro firms, SME, medium, and large corporations. Personal finance, mortgage financing, SME finance, debt capital markets, corporate finance, wealth management, and loan syndication are all sectors where ABFL provides tailored solutions. ABFLDirect.com, the company's innovative online finance platform, offers retail as well as MSME consumers rapid, simple, and hassle-free solutions.
SME microloan from Aditya Birla Finance Limited: Branch Locator
Aavas Financiers Limited
On February 23, 2011, AAVAS FINANCIERS LIMITED famously called "AU HOUSING FINANCE LIMITED" was founded as a PVT LTD company in Jaipur city, Rajasthan State, under the name "Au Housing Finance Private Limited."
Delhi, Rajasthan, Maharashtra, Chhattisgarh, Uttarakhand, Gujarat, Madhya Pradesh, Haryana, Uttar Pradesh, Punjab, Himachal Pradesh, Odisha, and Karnataka are among the states where AAVAS provides home loans, primarily to the un-served, unreachable, and under-served markets.
Get SME microloan from Aavas Financiers Limited Branch Locator
Avanse Financial Services
Avanse Financial Services Ltd is on a goal to provide every eligible Indian student with seamless and inexpensive education finance. To become a customer-centric, digitally agile NBFC, Avanse wanted to migrate its whole infrastructure to the cloud so that it could rapidly scale up to meet the demands of its expanding business. Avanse entrusted IBM with leading the change, allowing the company to concentrate on profitable development.
Get SME microloan from Avanse Financial Services Branch Locator
Bandhan Bank
The bank was established in 2001 under the clear vision of BFSL, which specializes in lending to small borrowers who do not have access to traditional banking services. BFSL has gained recognition and plaudits for helping to finance small businesses and roughly 6.7 million women consumers during the last 15 years.
Bandhan Bank Limited, a wholly-owned subsidiary of Bandhan Financial Holdings Limited, was established in December 2014. In April of that year, Bandhan got in-principle clearance from the Reserve Bank of India (RBI) to establish a universal bank. In June 2015, the banking regulator issued its final approval.
Get SME microloan from Bandhan bank Branch Locator
Cholamandalam MS
Chola SME Loans are business loans designed specifically to help Small and Medium Businesses expand and diversify their operations. Chola provides a variety of financing options to satisfy your short- and long-term funding and company growth needs.
- For various possible situations Cholamandalam group provides Loans:
- Business equipment and other fixed assets might be purchased, installed, or modernized with the help of a loan.
- Term loans might help you finance business development or acquisitions.
- It's possible to utilize it to pay off existing debt.
- By delivering constant payment amounts, it aids in the stabilization of your payment plan.
- Maintains your loan carrying costs as interest rates rise, giving you peace of mind.
Features of Cholamandalam MS loans:
- Loans spanning from INR ten lakhs to INR five crores are available.
- Repayment alternatives that are convenient.
- Tenure can be changed at any time.
- Interest rates could be either fixed or can be floated.
- Small and medium-sized company loans.
- Loans to any private limited liability company, partnership, or sole proprietorship.
- The collateral that is acceptable: Industrial / Factory Land and Buildings | Commercial Property | Residential Property.
Get SME microloan from Cholamadalam MS Branch Locator
DHFL
Dewan Housing Finance Limited (DHFL) provides business loans to small and medium-sized enterprises (SMEs) in India to develop the country's business community and industrial sectors. These company loans may be used for a variety of objectives, including short-term financing, working capital, and business development.
Get SME microloan from DHFL Branch Locator
Edelweiss
Edelweiss SME Lending understands the importance of SMEs in the Indian economy. We also recognize the need for finance for SME development. Edelweiss SME Loan provides SME businesses with a range of lending options ranging from 3.5 lakhs to 25 crores.
Business expansion, Working capital, machinery acquisition/refinance, capital expenditure, property purchase, and take-over of existing loans comprising top-up are all covered by our broad product portfolio of Unsecured, Equip, and Insured Business Loans.
Get SME micro loan from Edelweiss Branch Locator
Conclusion
Here we are mentioning few banking institutions and fintech companies allowing SME microloans to ensure the economic growth of the country. To know more about companies and banks for SME loans, Stay Tuned!
