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Faridabad

MSME loan in Faridabad

Situated in the National Capital Region, Faridabad is one of the leading industrial centres of India and a major satellite city of Delhi. It is also one of the most populated cities in the state of Haryana. The City Mayors Foundation also recognises it as one of the fastest-growing cities in terms of technology and infrastructure.

As of 2020, it is home to several large-scale companies such as Escorts Limited, Havells India Limited, Whirlpool India Ltd., Yamaha Motor Pvt. Ltd., Bata India Ltd, Indian Oil (R&D), etc. Haryana had 11,665 factories in 2013, 2,499 of which were from Faridabad. The presence of such influential companies makes it challenging for newly formed enterprises to thrive. These enterprises can consider an MSME loan/SME loan to meet their financial requirements.

A Brief About MSME Loan/SME Loan

In India, there are two primary sources of MSME loan – government schemes and banks/NBFCs. Government loans come at more straightforward terms compared to those offered by private financiers.

To qualify for a government-sponsored MSME loan, a company should have a certain amount of investment quantum and yearly turnover that has been fixed by the Government. The divisions are:

Micro

Small

Medium

Investment

˂ Rs. 1 Crore

˃ Rs. 1 Crore

 but

 ˂ Rs. 10 Crore

˃ Rs. 10 Crore

 but

 ˂ Rs. 20 Crore

Turnover

˂ Rs. 5 Crore

˃ Rs. 5 Crore

 but

 ˂ Rs. 50 Crore

˃ Rs. 50 Crore

 but

 ˂ Rs. 100 Crore

The foremost benefit of an SME loan is that it allows even micro and small enterprises to avail sizeable funds. There are several schemes that MSMEs can access in this regard, like the Prime Minister Employment Generation Programme, Credit Linked Subsidy Scheme, MSME Loan in 59 minutes.

Besides these schemes, banks and NBFCs also offer MSME loans directly. However, there are hindrances involved in both government-sponsored and private loans for MSMEs in Faridabad.

Difficulties Faced In Availing MSME Loans

There are several issues an enterprise faces when it tries to avail an MSME loan in Faridabad or any other place in India. Few of the most common difficulties are:

  1. Stringent Eligibility Criteria

Along with meeting the investment quantum and turnover limits, a company also needs to be at least six months old before it can apply for an MSME loan. The person applying should be over 25 years in age and possess a credit score of 750+. Also, their business should not fall under the blacklisted categories. In most cases, enterprises fail to meet all the requirements.

  1. Documentation Difficulties

As MSME loans fall under the unsecured category, financial institutions ask for numerous documents such as tax invoices, income proof of the applicant, ownership documents, audited financial statements, etc. Newly formed businesses usually do not maintain audited financial documents, making it difficult for them to avail an MSME loan/SME loan.

  1. Lengthy Process

The processing period for government-sponsored MSME loans is considerably lengthy. For instance, the disbursal of funds under the MSME loan in 59 minutes scheme takes around 8 – 10 days. It is not conducive to urgent financial obligations.

  1. High Rates of Interest

A business loan in Neharpar, Faridabad offered by banks and NBFCs directly entail hefty interest rates, ranging up to 21%. It primarily depends on the applicant’s eligibility. Newly formed enterprises might struggle with managing their finances while lugging interest payment of that scale.

  1. Long Repayment Tenure

While some would prefer a longer tenure of repayment, most businesses see this as a burden that they need to carry for years.

One can easily avoid these issues by opting for other loan options available in the market. However, not all of the options will be as beneficial as an MSME loan so one should decide only after knowing everything about their choice.

Gold-Backed Loan A Better Alternative

A gold-backed loan or a gold loan is a financing facility where the borrower pledges their gold against an amount of money. There are quite a few advantages of a gold loan over an MSME loan/SME loan, such as –

  1. Easy Documentation And Eligibility

Anyone older than 18 years is eligible to avail a gold loan with just their KYC documents and gold jewellery. This is way less stringent than the long list of criteria in MSME loan eligibility.

  1. Fast Approval Of Loan

Rupeek gold loan approval takes hardly a couple of hours, and for Faridabad business owners who need urgent funds, this is one of the best options to consider.

However, when you avail our gold-backed loan, you do not just get the benefits of any secured loan. Enjoy an array of additional benefits as well, like get loans within just 60 minutes of application with us.

Rupeek Provides

At Rupeek, we care about the safety of your gold and your comfort, and to ensure that we provide:

  • Convenient Overdraft Facility

With our overdraft facility called Rupeek Quick, our customers get to avail an extended credit line by pledging more gold. They get the convenience to access any amount they please from their sanctioned amount and only pay interest on that.

  • Doorstep Loan Facility

Avail our gold-backed MSME loan online at the comfort of your home with our online gold loan at your doorstep. Our representative will be at your place within 30 minutes to complete the loan disbursal process.

  • High LTV

LTV or loan-to-value ratio determines the amount one will get against the value of gold jewellery they have pledged. Depending upon the current value of gold, this amount can be substantially high compared to what an MSME loan can provide. With us, entrepreneurs can get up to 80% of their gold’s value. Use our gold loan calculator to know more about it.

  • Low Interest Rate

Being a secured loan, gold loan providers charge significantly less interest in comparison with MSME loans or other unsecured loans of the like. We charge interest as low as 0.79% per month, ensuring a more affordable repayment experience.

  • Flexible Repayment Options

We let our customers in Faridabad select from monthly EMIs, single bullet payment, interest pre-payment, or payment of instalments anytime within the tenure. Choose whichever seems convenient and repay accordingly.

If you are wondering to search “gold-backed MSME loan lenders near me”, to find our operation near your locality, do not waste your precious time. We are operational almost in every corner of India, including all the localities of Faridabad.

Our Operations In Faridabad

We provide services in and around the following areas in Faridabad.

  • Jawahar Colony
  • Ballabgarh
  • Faridabad Sector 7
  • Faridabad Sector 8
  • Faridabad Sector 16
  • Faridabad Sector 29
  • Faridabad New Industrial Town
  • Faridabad Sector 9
  • Greater Faridabad
  • Faridabad Sector 48
  • Faridabad Sector 15
  • Faridabad Sector 3

The many benefits of an MSME loan/SME loan against gold enable entrepreneurs to keep up with the competition. And with our financial services and sound management, enterprises can edge out their competitors.

Apply for an MSME loan/SME loan against gold today in Faridabad and get the capital your business needs to flourish.

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Benefits of Gold Loan over MSME/SME loan.
max LTV

We offer the highest per gram rate on our gold loans.

Today’s max loan value/gm () **

Today’s max loan value/gm ()
**
  • <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. Where will my gold be after I pledge it to Rupeek?

We have partnered banks in every corner of the country; your gold will be kept in a bank that is at a radial distance of 5km from your house. It will be kept in a military-grade locker, ensuring complete safety of your asset.

  1. What is the average percentage of interest in an MSME loan?

The average percentage charged by lenders on an MSME loan ranges between 13.50% to 33.50%, depending upon the lender.

  1. Is CIBIL Score an important requirement for a gold-backed loan?

No, one does not need their credit score or CIBIL score to avail a gold-backed MSME loan/SME loan.

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