Introduction
India has seen MSMEs gain much importance in the last few years. MSMEs provide employment opportunities and develop innovation in the country. MSMEs, however, often face the problem of access to credit for their growth. NBFCs cover this by providing business loans to meet the needs of traders and small businesses. In 2025, various leading NBFCs are offering attractive MSME loans to enable traders to fulfill their financial needs and expand in the market.
What is an NBFC?
The NBFCs are financial companies that offer banking services with no license for acquiring a banking license. While banks are allowed permission to accept demand deposits in either savings or current account deposits, NBFCs function very well in the financial system by offering credit and other financial services to the MSMEs.
The NBFCs are governed by the Reserve Bank of India and have norms regarding being transparent and stable. They deal primarily with business loans, machinery finance, etc. NBFCs support MSMEs with faster loan approval, repayments can be done flexibly, and they require less documentation as compared to traditional banks. Therefore, it is preferred by traders and small business owners.
Why Choose NBFCs for MSME Loans for Trading?
MSMEs are not usually able to get loans from traditional banks due to strict eligibility criteria, a lengthy amount of time to approve, and a large amount of collateral required.
NBFCs overcome these factors by offering:
- Processing of loans within a very short period.
- Minimal documentation.
- Loan products are designed according to the specific requirements for SMEs.
- Interest that is very reasonable
- Easy terms for repayment
All of these advantages position NBFCs as the ideal option for small traders and businesses for work capital funds or to expand their respective businesses
Top NBFCs for Trading in 2025
Some of the prominent NBFCs offering attractive MSME loan facilities for trading businesses in 2025 are:
1. Kinara Capital
Kinara Capital is among India’s best NBFCs for MSMEs. They are offering unsecured loans for small and medium enterprises that have business expansion plans in the market. Kinara Capital loan can be availed by MSMEs who are into manufacturing , trading and services businesses.
- Loan Amount: Upto ₹30 Lakh.
- Repayment period: Up to 60 months
- Features: Collateral-free, disbursement in 24 hours, minimal documentation, and upfront discounts for the women business owners as part of their HerVikas program.
2. Bajaj Finserv
They offer quick and easy loans for trading and small-scale industries. They are particularly offering some variants of MSME loans.
- Loan Amount: ₹ 80 Lakh
- Repayment Period: Up to 96 months
- Features: No security, disbursal in a short time, and very little paperwork.
- Bajaj Finserv also offers pre-approved loans for its existing customers; thus, one can be sure that they will get even faster processing.
3. Tata Capital
Tata Capital is one of the top NBFCs providing loans to retailers, serving under MSME loans, and offers various financial products. Now, there are some comprehensive features of Tata Capital MSME Loans.
- Loan Amount: Upto ₹90 lakh
- Repayment Tenure: Upto 60 months
- Features: Offers collateral-free loans with easy and quick approval.
- Tata Capital also provides online EMI calculators that help businesses plan for loan repayment without much hassle.
L&T Finance
A prominent NBFC that caters to the unique needs of a retailer and small business and gives MSME loans.
- Loan Amount: Upto ₹75 lakh
- Repayment Time Period: 12 to 60 months
- Features: Flexible loan structure, easy online access, fast disbursal.
Aditya Birla Finance Limited (ABFL)
ABFL is one of the subsidiaries of the Aditya Birla Group and is also very popular among its customer-centric lending products.
- Loan Amount: Upto ₹1 crore
- Repayment Time Period: Up to 60 months
- Offerings: No collateral, transparent process, and dedicated relationship managers.
Conclusion
NBFCs can become the single biggest supporter of MSMEs in a big way, especially for traders, by 2025. Kinara capital business loan is perfect for most MSMEs looking to scale up their business, buy inventory, or manage working capital. With quick disbursal, minimum documentation, and flexible payment terms. The right NBFCs would help secure funding for the traders and provide a solid base to these businesses within this tough competitive marketplace. With such leading NBFCs’ support, MSME is all set to play a big role in shaping India’s economic growth in the future.
