Bhopal, the 16th largest city in India, is renowned for its lakes and steel industries. It is home to a large number of lakes – artificial and natural – and is also considered one of the greenest cities in India.
The electrical goods, textile, jewellery, and chemical industries, comprising numerous MSMEs, are significant contributors to this city’s economy. Plus, the Madhya Pradesh government’s continual efforts have created lucrative opportunities for rural and urban entrepreneurship in particular. Naturally, the numbers of prospective borrowers of MSME loan/SME loan in Bhopal have grown by leaps and bounds over the years.
However, it’s necessary to learn about the MSME loan in details, as well as alternative financing options, to ensure sound financial management.
To generate more employment, the Central and MP state government have introduced several schemes to boost the MSME sector. The schemes offered are listed below-
Besides these financing options, companies can also avail MSME loans directly from banks and NBFCs.
However, before availing an MSME loan/SME loan in Bhopal, businesspersons should be aware of the new definition of MSMEs in India. As per the announcement by the Indian Government in May 2020, small micro and medium organisations are now categorised based on investment value and annual turnover. Moreover, now the parameters are similar for businesses belonging to the manufacturing and services sectors. Let’s take a look at them.
Micro, small, and medium-scale organisations can opt for MSME loans to fulfil the following purposes:
Here are some of the features of an MSME loan/SME loan in Bhopal:
Besides these features, prospective borrowers should also take note of the charges concerning this type of unsecured loan.
The following fees and charges are associated with MSME loans:
Besides knowing the fees and charges concerning MSME loans, individuals should also know how to calculate MSME loan EMIs before applying for one to ensure smooth repayment.
Borrowers can calculate their MSME business loan EMIs using the formula given below:
MSME loan EMI = P.r.(1+r) n/ [(1+r)^(n -1)
P = Loan amount
r = Rate of interest
n = Loan tenure (in months)
Entrepreneurs can also take the help of online MSME business loan calculators that are available online for free to compute their monthly EMIs.
However, to avail financing for their enterprise, individuals need to satisfy stringent MSME loan eligibility checks. Moreover, the loan disbursal process can take up to or even more than 10 days, especially when opting for government-backed options. This can be troublesome for businesspersons requiring immediate funds.
MSME or SME loan, being unsecured in nature, mandates borrowers to submit official papers like bank statements of the company for the last six months, income tax returns preceding two years, audited Balance Sheet and income statements, etc.
Moreover, applicants have to maintain a high CIBIL score of 750 to be eligible for an MSME loan. The interest rate levied on unsecured loans for MSME in Bhopal by NBFC’s are also high that significantly augments the cost of borrowing.
These hefty processes can become a burden for an entrepreneur requiring emergency capital. In such a scenario, individuals can consider taking a gold-backed MSME loan from Rupeek that comes with multiple feasible terms of service and lower interest rates. Compared to conventional MSMSE loans, these are secured and involve a hassle-free application procedure.
Borrowers looking for a ‘gold-backed MSME loan provider near me’ in Bhopal can avail our services instantly. We operate across the following localities in Bhopal:
A continually developing infrastructure has made Bhopal a distinct region for MSMEs in Madhya Pradesh. That’s why the company holder must be efficient with their financing. A gold-backed MSME loan/SME loan in Bhopal from Rupeek can be beneficial in this regard.
Apply today for gold-backed MSME loan scheme 2020 and get a step closer to your dreams!
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Yes, there are financial institutions that extend an overdraft facility on MSME loans/SME loans in Bhopal. However, the approved credit limit may vary from one lending institution to another. Hence, it’s imperative that borrowers enquire about the details before availing such facilities.
Yes, businesspersons have to submit income tax returns (ITRs) and sales tax returns besides providing other income-related documents to avail MSME loans.
Yes, sole proprietors can avail an MSME loan in Bhopal if they satisfy the eligibility criteria of the particular financial institution or loan scheme.
You can acquire a gold-backed MSME loan/SME loan in Bhopal with or without a CIBIL score. Having a CIBIL score is not mandatory in terms of a gold loan.
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