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MSME loan in Chandigarh

Chandigarh is the only city in India to act as the capital of two states, Punjab and Haryana. The architectural excellence of this planned city is internationally acknowledged, which reflects in places like The Capitol, Government Museum and Art Gallery, Rock Garden, and Open Hand Monument, among others.

The economy of Chandigarh largely extracts its revenue from trade and business. However, the growth in Information Technology also witnessed a hike in recent years. Moreover, the increasing number of registration under small and micro enterprises in Chandigarh is testimony to the ample opportunities businesses are afforded here. To keep up with the rising competition in Chandigarh, companies can avail an MSME loan/SME loan. It allows businesses to meet a wide array of expenses, and with the right choice of financing, enterprises can sustain and thrive in this city.

Purpose Of Availing MSME Loan/SME Loan

Business owners can avail MSME/SME loans to meet working capital requirements, expand their business, pay salaries and rent, purchase new equipment or machinery, and hire & train employees.

MSME Loan/SME Loan Eligibility

Enterprises must meet the following criteria to be eligible for MSME:

  • The applicant’s age must be between 18 – 66 years
  • His/her credit score must be equal to or above 750.
  • Private or Public limited, Sole Proprietorship, Partnership ship, Limited Liability Partnership are eligible to apply for MSME/SME loan.
  • The annual business turnover should be a minimum of Rs. 25 lakhs.
  • The enterprise should have a bona fide vintage of 2 years.

The above mentioned criteria for loans 4 SME might differ based on the financial institution.

MSME Loan/SME Loan Documentation

The documents required for MSME loan exclusively depend on the financial institution or the government-backed scheme under which one is applying for a loan.

Following are some of the generic documents financial institutions usually require during MSME loan procedure.

  • Age proof
  • Identity proof
  • Residence proof
  • Business address and existence proof
  • Income proof of the applicant
  • Partnership deed (if it is a partnership firm)
  • Last 12 months’ bank statement
  • Company PAN card copy
  • Business registration proof
  • P&L statement and Balance Sheet (CA audited)
  • Sales tax documents
  • Previous 2 years’ ITR documents
  • Previous year’s GST returns
  • Municipal tax documents

Financial institutions are fairly stringent with these eligibility parameters for an MSME/SME loan. Hence, new enterprises may find it difficult to apply for this financing option from banks and NBFCs directly.

Another crucial limitation of bank loans in Chandigarh for MSMEs is that they associate high interest rates. To avoid these inconveniences, companies can opt for government schemes.

MSME Loan Scheme 2020

The MSME/SME sector contributes nearly 45% to India’s industrial output and 40% of its exports. To increase this percentage further, the Government of India has introduced several MSME loan schemes to empower and promote these establishments. A few of these schemes are:

  • MUDRA loan
  • Credit Guarantee Funds Trust for Micro and Small Enterprise or CGTMSE
  • Prime Minister’s Employment Generate Program or PMEGP
  • Emergency Credit Line Guarantee Scheme (ECLGS)

To support the micro, small and medium enterprises (MSME/SME) units of the state, the government of Punjab has sanctioned approximately Rs. 2166 crores under the Emergency Credit Line Guarantee Scheme (ECLGS), per a Times of India article.

However, companies must be registered as an MSME under the Udyog Aadhaar Memorandum to be eligible for these schemes of MSME loans for entrepreneurs.

Another point to note is enterprises need to wait for at least 8 – 10 days or even more than that to get the funds. This may not be suitable to meet the sudden cash shortfalls/

In cases like this, entrepreneurs looking for ‘MSME loan providers near me’ can consider a gold loan owing to its flexible eligibility criteria and quick disbursal time.

MSME Loan/SME Loan Vs Gold Loan

Documentation

Extensive

Simple

CIBIL score

750 or above

Not required

Processing time

8-10 days

Less than an hour

Interest rate

Higher

Lower

Once borrowers have decided to opt for an MSME loan against gold, the next crucial job involves finding the right lender. In this regard, borrowers can trust our financial services available at Rupeek.

Benefits Of Availing Financial Solution With Rupeek

We, at Rupeek, provide 100% transparent process and multiple schemes from which borrowers can select as per their business requirements. Following are some of the benefits of opting our gold loan services.

  • Quick Disbursal

From requesting a loan to KYC documents verification and gold valuation at our client’s preferred location to gold deposit at our lending partner’s bank and ultimately loan amount transfer to our client’s bank account, the entire process only takes 45-60 minutes. With minimal documentation which only involves KYC documents verification, we can provide the fastest gold loan services.

  • Lower Interest Rate

The unsecured nature of MSME loans is invariably linked with the higher MSME interest rate, which ultimately increases the cost of borrowing. On the contrary, at Rupeek, our clients can avail loan up to Rs. 1.5 crores at interest rates as low as 0.79% per month. With such a lower interest rate, entrepreneurs can easily manage the whole debt.

  • Convenient Repayment Process

Repayment is more manageable with Rupeek. Customers can choose to repay the due amount according to their convenience. Choose EMIs or pay instalments whenever during the tenure.

  • Gold Overdraft Facility

Known as ‘Rupeek Quick’, our gold overdraft facility helps borrowers to avail a credit line by pledging additional gold. Also, businesspersons get the further benefit of 247 money withdrawal facility to cover their several business expenses.

Business owners who are looking for ‘gold-backed MSME loan/SME loan provider near me’ can enjoy our doorstep service in all the major localities in and around Chandigarh.

Rupeek’s Presence In Chandigarh

Get an MSME/SME loan within 60 minutes from Rupeek in and around the following localities in Chandigarh –

  • Manimajra
  • Ram Darbar
  • Sector 1 Chandigarh
  • Sector 26 Chandigarh
  • Sector 22 Chandigarh
  • Sector 15 Chandigarh
  • Sector 35 Chandigarh
  • Sector 21 Chandigarh
  • Sector 20 Chandigarh
  • Sector 9 Chandigarh
  • Sector 19 Chandigarh
  • Sector 40 Chandigarh

Your chance to secure instant MSME loan/SME loan with Rupeek is just a click away. Get in touch with us today to resolve any gold loan-related query.

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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. What safety measure does Rupeek take while providing MSME loan against gold?

The gold loan professionals at Rupeek carry the client’s valuables in a GPS-enabled bag and keep them secured in bank-vaults within a 5km radial distance. Also, the client’s valuables are fully insured against any theft or unfortunate event during the tenure.

  1. How is the interest rate on gold-backed MSME loan calculated?

The procedure of calculating the interest rate on gold loans differs across lending institutions. Borrowers must ask the lender to clarify the procedure before the approval of the loan amount.

  1. Can I opt for partial repayment for MSME loan against gold with Rupeek?

Certainly, you can opt for a partial repayment option. Known as the part release, this process requires you to make a payment, which must range between monthly payable interest and sum required for foreclosure.

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