Compare All PSU Banks Side by Side
We work with all 12 PSU banks and HDFC Bank. Compare interest rates, maximum loan amounts, collateral requirements and processing speed for MSME loans — then let us negotiate the best deal for you.
| Lender | Rate | Max loan | Collateral | Speed | Best for |
|---|---|---|---|---|---|
 State Bank of India PSU · Largest MSME lender in India | 8.00 – 10% | ₹500 Cr+ | Required | 15–30 days | Best PSU rate |
 Bank of Baroda PSU · Strong MSME network in Gujarat | 8.15 – 10% | ₹500 Cr+ | Required | 15–25 days | Gujarat focus |
 Punjab National Bank PSU · Large MSME portfolio pan-India | 8.25 – 10% | ₹500 Cr+ | Required | 15–30 days | North India |
 Union Bank of India PSU · CGTMSE & MUDRA specialist | 8.30 – 10% | ₹500 Cr+ | Optional | 15–25 days | CGTMSE loans |
 Canara Bank PSU · Competitive MSME schemes | 8.40 – 10% | ₹500 Cr+ | Required | 20–30 days | Scheme loans |
 Bank of India PSU · Pan-India manufacturing loans | 8.50 – 10% | ₹500 Cr+ | Required | 20–30 days | Manufacturing |
 Indian Bank PSU · Machinery & equipment finance | 8.55 – 10% | ₹500 Cr+ | Required | 20–35 days | Machinery loans |
 Central Bank of India PSU · MSME & PMEGP schemes | 8.60 – 10% | ₹500 Cr+ | Optional | 20–35 days | PMEGP subsidy |
 Bank of Maharashtra PSU · Western India MSME focus | 8.65 – 10% | ₹500 Cr+ | Required | 20–35 days | Maharashtra MSMEs |
 UCO Bank PSU · Eastern India & pan-India branches | 8.70 – 10% | ₹500 Cr+ | Required | 20–40 days | Small MSME loans |
 Indian Overseas Bank PSU · South India & export finance | 8.75 – 10% | ₹500 Cr+ | Required | 20–40 days | Export-linked loans |
 Punjab & Sind Bank PSU · North India MSME lending | 8.80 – 10% | ₹500 Cr+ | Required | 25–40 days | Punjab region MSMEs |
 HDFC Bank Private · #1 private sector MSME lender in India | 10.75 – 22% | ₹500 Cr+ | Optional | 7–15 days | Fast approval |
Rates as of June 2026. Indicative only — actual rates depend on credit profile, collateral & scheme.
⚠ Indicative figures only
Rates, loan amounts, subsidy percentages and eligibility shown here are indicative. Actual figures depend on your credit profile, lender policies, project details and current scheme availability. Final confirmation is provided by our team over phone, WhatsApp or email — at no cost.
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Bank comparison questions
Which bank has the lowest MSME loan interest rate?
PSU banks offer the lowest MSME loan rates, starting from 8% p.a. SBI and Bank of Baroda are consistently the most competitive. HDFC Bank is faster on approvals but slightly higher in rate. The best lender depends on your amount, collateral and timeline — which we match for free.
Why do PSU banks offer better rates than private banks?
PSU banks are government-owned and operate with a mandate to support MSME growth, so their cost of funds and margin targets are lower than private banks. They also have access to government refinance schemes that reduce their lending cost further.
Do these rates apply to my business?
Published ranges are indicative. Your actual rate depends on your credit profile, collateral, turnover and scheme eligibility. We negotiate on your behalf to secure the best deal.
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