MSME loans are unsecured loans offered by several financial institutions to help entrepreneurs meet various business-related expenses. As per the Indian government and RBI, these loans are for certain business enterprises that fall under these categories: Company (Manufacturing or service provider) MICRO. SMALL. Private companies, sole proprietors, private companies engaged in trading, manufacturing or services sector are eligible to apply for an SME loan. The applicant should be engaged for a minimum of 3 years in the business concerned and at least 5 years of experience in the business. MSME loan is a credit facility offered to MSMEs, individuals, startups, and other business entities for business expansion purposes and to meet working capital requirements. The maximum loan amount offered by banks/NBFCs is up to Rs. 1 crore (Collateral-free loans) with the repayment tenure of up to 5 years.