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Do MSME Loans Have Processing Fees? A Practical Guide for Business Owners

  For most MSME owners, securing a loan is a strategic decision—one that impacts cash flow, profitability, and future growth. While interest rates and repayment terms are often discussed, processing fees are usually overlooked until the final stage. So, do MSME loans come with a processing fee? The short answer is yes—but the details matter. Understanding MSME Loan Processing Fees A processing fee is a one-time cost charged by lenders to evaluate your loan application. It covers tasks such as verifying business documents, checking credit history, assessing financial health, and structuring the loan. This fee is usually paid upfront and is non-refundable, even if the loan is not sanctioned. How Much Is the Processing Fee for MSME Loans? Processing fees for MSME loans generally range between 0% and 4.72% of the loan amount , plus GST. The exact amount depends on who you borrow from and your business profile. Banks usually charge lower fees NBFCs and fintech lenders charge ...
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How Franchise Owners Can Access MSME Credit Faster with Digital Lending Platforms

 Franchise ownership has grown rapidly in India over the past decade, powered by rising consumer demand, proven business models, and the credibility of operating under established brand names. From food outlets and retail chains to salons and service franchises, the Indian franchise ecosystem crossed $50 billion in value in 2024 . However, despite this momentum, franchise owners across sectors face a common challenge— timely access to capital . Launching or scaling a franchise requires substantial upfront investment. Franchise fees, location setup, interiors, inventory, staffing, and marketing all demand capital at specific stages. Any delay in funding can push launch timelines, disrupt operations, or reduce competitive advantage. Traditionally, MSME credit involved long approval cycles, repeated paperwork, and limited transparency. Today, digital lending platforms, fintech ecosystems, and NBFC-driven models are transforming this experience. Why Faster MSME Credit Is Critical for...
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How PSB59’s Smart Underwriting Is Redefining MSME Loan Approvals

  For India’s MSMEs, access to credit is not just a financial requirement—it is a growth enabler. Yet, despite policy support and demand, many MSMEs continue to face loan rejections due to outdated underwriting systems. Manual processes, rigid risk models, and excessive documentation often exclude businesses that are otherwise financially sound. PSB Loans in 59 Minutes (PSB59) addresses this challenge through smart underwriting—a technology-driven approach that aligns lending decisions with how MSMEs actually operate. By combining verified data sources, automation, and lender-specific scoring, PSB59 significantly reduces avoidable loan rejections. The Core Problem with Traditional Underwriting Traditional underwriting was never designed for MSMEs. Its failures stem from: Heavy dependence on audited financials Inadequate credit bureau visibility for small firms Slow manual file movement Subjective decision-making Limited understanding of MSME cash-flow dynamics ...
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Collateral-Free Financing Solutions for Photography Studios in India

  The photography industry in India is witnessing rapid growth, fuelled by weddings, influencer marketing, e-commerce, advertising, and digital branding. For photography studios, staying competitive means constant investment in high-quality equipment, studio infrastructure, editing technology, and marketing. Yet, many photographers struggle to secure loans due to the absence of collateral. Collateral-free financing offers a practical solution, allowing studios to access capital without pledging assets. This financing model has become a growth catalyst for freelancers, MSMEs, and creative professionals across the country. What Is Collateral-Free Financing? Collateral-free financing refers to unsecured loans where approval is based on the borrower’s credit profile and income stability rather than physical assets. Lenders evaluate repayment capacity using bank statements, income tax returns, and business performance. Why Photography Studios Prefer Unsecured Loans Photography busi...
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PSB59 vs Conventional Banks: What MSMEs Need to Know Before Applying for a Loan

 For Micro, Small, and Medium Enterprises (MSMEs), access to timely and affordable credit is often the difference between stagnation and growth. Whether it is managing day-to-day working capital, purchasing new machinery, or scaling operations to meet rising demand, financing decisions directly impact business sustainability. In India, MSMEs typically choose between two major lending routes: PSB Loans in 59 Minutes (PSB59) and conventional bank lending through public or private sector banks . Understanding how these two options differ can help MSME owners make informed borrowing decisions. Understanding PSB59: A Digital-First Lending Platform PSB Loans in 59 Minutes, commonly known as PSB59, is a government-backed digital initiative introduced with the support of SIDBI and public sector banks. The platform was designed to address a long-standing challenge faced by MSMEs—delayed loan approvals. Through PSB59, eligible MSMEs can receive an in-principle digital loan approval within...
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Loan Guidance for Event Management Companies & Wedding Planners in 2025

Event management and wedding planning may look glamorous from the outside, but behind every grand celebration lies a business that needs strong financial support. From booking venues and paying vendors in advance to hiring teams and handling last-minute client changes—event companies require steady cash flow and reliable access to working capital. Like many MSMEs, event planners often face challenges in maintaining liquidity and scaling their services. Business loans help bridge these financial gaps, enabling companies to take on more clients, expand operations, and manage larger events smoothly. This guide covers everything event management firms and wedding planners need to know about loans in 2025—when funding is required, the best loan options, government schemes, eligibility, documentation, challenges, and tips to secure faster approval. You can also explore fast online loan approvals powered by platforms like psbloansin59minutes . Why Event Management & Wedding Planning B...
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MSME Loans: 5 Powerful Ways Pet Care Businesses Unlock Growth Easily

The Indian pet care sector is expanding at lightning speed. With rising pet ownership, evolving consumer lifestyles, and increasing disposable income, pet parents today are investing more than ever in grooming, nutrition, wellness, accessories, and veterinary care. But while the demand is high, building or scaling a pet care business requires strong financial support . This is exactly where MSME loans become a game-changer. From grooming salons to veterinary clinics and pet boarding homes, MSME loan schemes allow businesses to grow without worrying about collateral, heavy interest, or lengthy approval processes. In this blog, let’s break down how pet care entrepreneurs can unlock growth effortlessly through modern MSME financing options. Why Pet Care Businesses Need MSME Loans Today Running a successful pet care business requires investments in: Grooming equipment Veterinary diagnostic tools Clean and safe boarding infrastructure Skilled staff Pet supplies and medicines Marke...
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