An SME loan is a type of financing provided to small and medium-sized enterprises (SMEs) to support their growth, expansion, or operational needs. These loans can be used for various purposes, such as purchasing equipment, expanding facilities, managing cash flow, or funding new projects. SME loans are designed to cater to the unique financial requirements of smaller businesses, often featuring flexible terms, lower interest rates, and faster approval processes than traditional loans. By providing access to capital, SME loans help businesses enhance productivity, create jobs, and drive economic development.