Home Business Corporate Finance 20 Types of Loan Schemes That MSME Can Opt

20 Types of Loan Schemes That MSME Can Opt

December 22, 2025

A. Core term / working capital loans

Regular Term Loan – Fixed tenure (3–7/10 साल), EMI या structured repayment, capex, expansion, machinery, factory building आदि के लिए।
Working Capital Term Loan (WCTL) – Existing CC/OD या accumulated WC gap को term‑style किस्तों में repay करने के लिए convert किया गया loan।
Plain Working Capital Loan (short‑term/demand) – 12–36 महीने की short‑term facility, seasonal या specific operational funding के लिए।

B. CC / OD / line‑based structures

Cash Credit (CC) – Stock + book‑debts के against DP आधारित running limit; interest केवल utilized amount पर।
Overdraft (OD) – Current account पर sanctioned limit, collateral backed, short‑term liquidity के लिए flexible उपयोग।
Drop‑line OD (DOD) – OD limit हर महीने/quarter pre‑fixed schedule से reduce होती है, quasi‑term loan जैसा structure।
General Business Line of Credit – Revolving line जहाँ बार‑बार draw‑repay किया जा सकता है, cash‑flow smoothing के लिए।

C. Invoice / trade finance structures

Bill / Invoice Discounting – Accepted bills या confirmed invoices को bank discount कर देता है; buyer से payment आने तक bridging finance।
Invoice Factoring / Receivables Purchase – Factor या NBFC supplier के receivables खरीदता है (with/without recourse), collection risk भी आंशिक transfer।
Trade Credit via Bank Support – LC/guarantee backed deferred payment terms, supplier’s credit आदि, जो अलग trade‑finance bucket की तरह treat होता है।

D. Non‑fund based instruments

Letter of Credit (LC) – Import/export या domestic trade में payment guarantee; bank non‑fund based limit, commission‑based।
Bank Guarantee (BG) – Performance / financial guarantees, tenders, government contracts के लिए; केवल commission व margin requirement।
Standby Letter of Credit (SBLC)‑type Guarantees – बड़े या structured deals में payment/performance support; कुछ banks इसे MSME clients तक भी extend करती हैं।

E. Asset‑backed MSME loan structures

Loan Against Property (LAP – Business Purpose) – Commercial/residential property mortgage पर term loan/OD; higher tenure, relatively lower rate, end‑use business।
Machinery / Equipment Finance – Specific plant & machinery पर hypothecation‑based term loan; capex‑oriented borrowing।
Vehicle / Commercial Fleet Finance – Goods carriers, commercial vehicles, construction/fleet assets के लिए dedicated asset‑tied facility।

F. Project & composite finance

Project Finance Loan – Greenfield/Brownfield project के cash‑flows, DSCR, escrow आदि पर structured long‑term funding; security mix project assets + collateral।
Composite Loan (Term + WC in one) – RBI MSME framework में छोटे units के लिए एक ही composite limit जिसमें term loan + working capital दोनों include हों।

G. New‑age revenue / cash‑flow backed

Merchant Cash Advance / POS‑linked Loan – Card/POS/QR collections के percentage से daily/weekly automatic recovery वाला short‑tenor structure।
Online Revenue / GST‑analytics Based Loan – Bank statement, GST data, online sales आदि पर आधारित data‑driven short‑term या quasi‑revolving MSME loans।