MSME Term Loans
Structured term finance for expansion, capacity enhancement, equipment, infrastructure and long-term business requirements.
Who it is for
Businesses investing in capacity, premises, equipment or a defined expansion plan — where repayment should be matched to the life of the investment rather than the next few months of cash flow.
Typical business requirements
- Plant expansion or additional lines
- Long-gestation infrastructure spends
- Consolidation of shorter, mismatched debt
- Capex with a clear project outline
How the solution works
We separate capex from working capital, stress-test repayment against cash generation, and help present the proposal in a form lenders can assess. Tenor, security and covenants are lender-determined.
Key considerations
- Do not fund long-term assets with short-term limits
- Promoter contribution and project cost build-up matter
- Existing leverage affects capacity
- No guaranteed timelines or rates
Documentation overview
- KYC and constitutional documents
- Financials, ITRs and GST
- Project / capex outline and quotations where relevant
- Banking and existing loan statements
Nexterra's role
Advisory and facilitation: structuring the ask, preparing a coherent credit narrative, and coordinating lender interaction. Nexterra is not the lender.
FAQ
When is a term loan more appropriate than working capital?
When funds create a longer-life asset or multi-year expansion that should be repaid over time.
Can Nexterra confirm an interest rate?
No. Pricing is determined by the lender after assessment.
Is collateral always required?
It depends on lender, facility and profile. Some eligible MSE facilities may be considered under CGTMSE by participating institutions.