Private Sector BankTerm Loan (Capex / Expansion)Micro Enterprise (Investment ≤ ₹1 Cr)🛡️CGTMSE CoveredVerified: 2026-09-29

AU Small Finance Bank Secured Business Loan

Primary Lending Institution:AU Small Finance Bank

₹2 Lakh to ₹2 Crore MSME credit at 9.50% – 13.50% with Up to 10 years tenure.

Interest Rate9.50% – 13.50%Linked to EBLR / MCLR / Risk

Loan Amount Quantum₹2 Lakh to ₹2 CroreBased on turnover & project cost

Repayment TenureUp to 10 yearsWith moratorium where applicable

Collateral SecurityRequires commercial, industrial, or residential property collateral.

What's Missing: Crucial Fine-Print & Exclusion Gaps

Requires commercial, industrial, or residential property collateral.

Note: Eligo publishes these regulatory and commercial exclusions directly from bank product guidelines and CGTMSE rules to protect MSME applicants from unexpected fee debits or loan rejection surprises.

What is AU Small Finance Bank Secured Business Loan?

Small finance bank business loan catering to semi-urban and Tier 2/3 markets with flexible surrogate underwriting.

Key Benefits & Features

Specializes in customers without formal ITRs; assesses shop footfall and banking cash flows; long tenure up to 10 years.

Government Subsidy & Credit Guarantee Coverage

CGTMSE / Bank Guarantee / Normal Security

Enterprise Eligibility Criteria

Self-employed micro-entrepreneurs, traders, and small workshops in semi-urban India.

Business Vintage1+ Years in Operation

Min. Annual Turnover₹10.0 Lakh

Processing Fee1.00% to 1.50% + GST

Prepayment TermsZero prepayment penalty on floating rate loans as per regulatory norms

How to Apply (3 Verified Paths)

💼Path 1: Current Account Portal

Apply online via business net banking or approach loan account manager.

🌐Path 2: Official FinTech / Govt Portal

Apply online at https://www.aubank.in/business-banking/loans/secured-business-loan with digital KYC and financial statements.

🏢Path 3: SME Banking Center Walk-In

Visit nearest MSME branch of the institution with business registration and bank statements.

Eligo does not collect business loan applications or financial data. Apply directly on the verified official domain:

Visit Official Portal↗

Documents Required Checklist

Udyam Registration Certificate, PAN, Aadhaar, Last 2 years ITR and financial statements, 12 months GST returns, 6 months bank statement.

Frequently Asked Questions

What is the maximum loan tenure and amount for AU Small Finance Bank Secured Business Loan?

Borrowers can avail ₹2 Lakh to ₹2 Crore with a repayment tenure of Up to 10 years.

What are the processing charges and collateral terms for AU Small Finance Bank Secured Business Loan?

The processing fee is 1.00% to 1.50% + GST. Collateral terms: Requires commercial, industrial, or residential property collateral.

What are the eligibility criteria for AU Small Finance Bank Secured Business Loan?

Self-employed micro-entrepreneurs, traders, and small workshops in semi-urban India. Minimum business vintage required is 1 year(s).

How can an applicant apply for AU Small Finance Bank Secured Business Loan?

Apply online at https://www.aubank.in/business-banking/loans/secured-business-loan or visit nearest branch with KYC, Udyam registration, and bank statements.