Loans that cater to the financial needs of the Small and Medium Enterprise (SME) segment are known as SME loans. This segment is responsible for providing huge employment opportunities at relatively lower capital costs and at the same time, also aids in the industrialization of backward and rural areas. By contributing highly to domestic production, significantly increasing export earnings, and being operationally flexible, SMEs play a key role in the development of the nation.
The enterprise can get a significant amount to finance its operating expenditure, buying raw materials and machinery, spending on advertising and marketing, and executing expanse.