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MSME loan in Bangalore

Touted as the Silicon Valley of India, Bangalore is the 4th largest IT hub globally and the centre of India’s $150 billion tech industry. Alongside the IT industry, the city is also renowned for the Bangalore Palace and Lal Bagh.

Bengaluru also offers an excellent opportunity to budding businesses and start-ups. Hence, the record numbers of start-ups of India are based out of this city. The opportunities in Bangalore attract several entrepreneurs to bring their business ideas here, leading to a rapidly evolving market.

To keep up with the costs, these ventures require financial assistance to spread their wings. In this regard, an MSME loan/SME loan is a great option.

MSME/SME Loan in Bangalore – Definition

It is a financial product tailor-made for the requirements of micro, small and medium businesses. MSME/SMEs can address a host of their monetary concerns with this financing facility.

Typically, budding ventures can use an MSME loan to establish and expand their operations. An MSME loan for new business helps entrepreneurs to keep the financial health of their business intact and maintain regular cash flow.

Features of MSME Loan Scheme

Here are a few notable features of this financial product –

  1. Multi-Faceted: An MSME loan in Bengaluruis a multi-purpose product. It means business owners can use these funds to manage various expenses of their enterprise.
  2. Extended Tenure: Typically, MSME loans offer repayment tenure of up to 5 years or 60 months. Specific lenders also let borrowers extend this period if needed.
  3. Approval Period:Government-sponsored loans, like MSME loan in 59 minutes, take up to 8 – 10 days for processing. The ones offered by banks and NBFCs can take up to 3 – 7 days.
  4. Collateral-Free: Typically, MSME/SME loan providers do not ask for collateral to sanction funds. Hence, the approval or rejection of loan application depends on the eligibility criteria of applicants.

To access these features, applicants need to following MSME loan eligibility criteria

  • Credit Score: 750 or above
  • Business Vintage: Any business with 6 months to 1 year in operation; specific lenders may prefer an extended period
  • Annual Turnover: It depends on the requirement of the lenders
  • Applicant’s Age: He/she must be above 25 years of age

Along with this, one needs to submit the following documents to avail MSME/SME financing. Here are the details –

  • KYC documents
  • Business ownership documents
  • Business plan
  • Audited Balance Sheet and Profit & Loss statement
  • Income proof of the applicant

Based on the fulfilment of these requirements, the lender decides whether to approve or reject a MSME loan/SME loan application. Additionally, the rising delinquency rates have further prompted financial institutions to be strict about these aforementioned criteria.

MSME/SMEs in Bangalore that are in dire need of funds but unable to meet these strict requirements may opt for a gold loan.

Gold Loan – An Ideal Alternative

Because a gold loan is secured, the eligibility requirements are lenient, and borrowers can avail funds much quicker and at a lower cost.

Moreover, owing to its restriction-free usage, this financing option can help entrepreneurs fund an array of business expense that they have. Here are some prominent usage of gold-backed MSME loans –

  1. Supporting Working Capital

Individuals can use these funds to support the working capital of their business. It will help them to ensure a steady cash flow and smooth running of day to day operations.

  1. Procuring Inventory

Entrepreneurs can use an MSME loan/SME loan against gold to restock their enterprise’s inventory. It is handy to cope with seasonal demands.

  1. Upgrading Equipment

Keeping up with the market competition is imperative, especially in a city like Bangalore. To gain an edge over competitors, individuals may use a gold loan to upgrade equipment.

  1. Establishing or Expanding Business

As mentioned above, MSME loans require businesses to be operational for a particular period for them to be eligible. But with a gold-backed MSME loan, borrowers can use the loan as an initial investment as well.

Furthermore, the low cost of borrowing makes a gold-backed MSME loan new business more affordable.

Nevertheless, one must select a financier smartly when searching for “MSME loan provider near me” to ensure additional benefits like high value, repayment flexibility, and instant disbursal. To that end, entrepreneurs can consider Rupeek.

Reasons to Choose Rupeek

Here are some noteworthy features that borrowers can enjoy with Rupeek –

  1. Online Application and Doorstep Service

The loan application process with Rupeek is straightforward. Borrowers can visit our official website and enter their mobile number to apply. Once this process is complete, our company representative will visit the applicant’s residence or office at a time of their convenience for KYC verification and authentication of gold jewellery. Once they are satisfied, borrowers will receive the loan amount in their bank account instantly.

  1. Loans up to Rs. 1.5 Crores

We offer a loan-to-value ratio of up to 80%, allowing customers to get the highest value against their gold. Individuals can use our gold loan calculator to quickly find out the per-gram rate and calculate the loan value.

  1. Lowest Interest Rate

Along with the highest LTV ratio, we also offer one of the lowest rates of interest in the market, which starts from 0.79% per month. Hence, the interest payment becomes considerably more affordable with us.

  1. Repayment Flexibility

Moreover, we have introduced a flexible repayment structure that aid in this process further. Here, our customers have the opportunity to select from various repayment schemes like regular EMIs, one- time bullet payment, interest prepayments, etc. Also, borrowers have the option to pay as per their convenience as well.

  1. Easy Eligibility and Documentation

The easy eligibility criteria and documentation process make availing funds with Rupeek even more accessible. Individuals who are above 18 years of age and possess gold jewellery can avail a loan from us.

Additionally, instead of a lengthy list of documents needed to avail MSME loans Bangalore, individuals only have to submit KYC details to avail funds from Rupeek.

  1. Overdraft Facility against Gold

The benefits of availing Rupeek’s services continue with our gold overdraft facility. Known as Rupeek Quick, under this facility, our existing customers can avail an extended credit line on their current loan by pledging more gold.

This facility is particularly beneficial for entrepreneurs, as it will provide them access to instant funds anytime from anywhere. Moreover, borrowers need to make interest payments on the amount they have withdrawn, ensuring substantial savings for them.

Besides these benefits, our presence in the top localities of Bangalore also allows us to reach your house within 30 minutes and offer you a prompt doorstep service.

Places in Bangalore Where Rupeek is Operational

  • Koramangala
  • Electronics City
  • Hal Old Airport Road
  • Sampangi Rama Nagar
  • Hsr Layout
  • Whitefield
  • Yelahanka
  • Banashankari
  • Bannerghatta
  • Bommanahalli
  • Bellandur
  • Hoskote
  • Nelamangala
  • Jp Nagar
  • Banaswadi

MSME loan/SME loan is an excellent option for business owners to take a step further towards their dreams. However, the stringent eligibility requirements may be an issue for some, and a gold loan can be a potent alternative for them. Additionally, with a variety of schemes and repayment methods from Rupeek paired with doorstep services, availing an MSME loan has become more hassle-free than ever.

Contact Rupeek today for a fast and flexible financing solution.

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Benefits of Gold Loan over MSME/SME loan.
  • <1 lakh
  • 2 lakh
  • 3 lakh
  • 5 lakh
  • 10 lakh
  • 20 lakh
Comparision Parameters MSME / SME Loan Gold loan
Interest Rate 2.39% .79%
Monthly Interest Amount
Eligibility & Documentation More Documents Needed Only KYC Needed
Processing Time & Disbursement 2 days to 1 week Within a day
Required Gold Weight -
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Frequently asked questions

  1. Is there any balance transfer facility for MSME loan/SME loan with Rupeek?

Yes, Rupeek offers balance transfer facility with gold-backed MSME/SME loans. Opting for this service can allow you to save up to Rs.12,377 per lakh on repayments.

  1. How to avail the rebate facility offered by Rupeek on gold loans?

You can avail the rebate facility with regular repayments. Moreover, you will earn a higher rebate amount with more frequent repayments.

  1. Can I avail an MSME loan in Bangalore from Rupeek against gold bars?

No, Rupeek does not accept any gold articles other than ornaments.

  1. What is the lock-in period with MSME loans from Rupeek?

There is no lock-in period with MSME loans against gold from Rupeek.

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