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MSME loan in Ghaziabad

Home to Hindon Airport, Ghaziabad is the largest city in the western Uttar Pradesh and a vital part of the National Capital Region of Delhi. Due to its proximity to the capital, it is also popularly known as the “Gateway of Uttar Pradesh”. Due to its recent development in regards to infrastructure, it is considered to be one of the fastest-growing cities in the world. This fast pacing real estate growth is backed up with a significant amount of capital from the businesses in the city.

While it is easy for established organisations to attract investors and generate funds, small establishments still have to rely upon loans from financial institutions. To ensure that entrepreneurs and small business of India are not lagging, the Indian Government has introduced numerous schemes for them. Besides that, multiple scheduled commercial banks and NBFCs offer MSME loan/SME loan.

What Are MSME/SME Loans?

MSME loans are credit facilities for businesses qualifying as micro, small or medium enterprises depending upon their investment quantum and yearly turnover. The bars set for the same are,

Micro

Small

Medium

Investment Quantum

Up to Rs. 1 crore

More than Rs. 1 crore but up to Rs. 10 crores

More than Rs. 10 crores but up to Rs. 20 crores

Yearly Turnover

Up to Rs. 5 crores

More than Rs. 5 crores but up to Rs. 50 Crores

More than Rs. 50 crores but up to Rs. 100 Crores

Enterprises satisfying these criteria can opt for several MSME scheme 2020. Few of these schemes are:

  • Market Promotion & Development Scheme (MPDA)
  • Prime Minister’s Employment Generation Programme (PMEGP)
  • Domestic Market Promotion Scheme (DMP)
  • Credit Guarantee Trust Fund for Micro & Small Enterprises (CGTMSE)

Private financial institutions also provide SME loan, should an enterprise fulfil their eligibility criteria. Though these schemes are highly beneficial for budding businesses, a significant part of MSME loan/SME loan remains untapped due to its stringent eligibility criteria and few other disadvantages.

What Are The Shortcomings Of MSME Loans?

Most businesses fail to avail an MSME loan/SME loan due to the following shortcomings.

  1. Time Consuming

Financial institutions on an average take over three days to complete the procedure of an MSME loan. When met with an urgent need for funds, this can become a huge problem for a business owner. 

  1. Strict MSME Loan Eligibility Criteria

Apart from qualifying in terms of investment quantum and yearly turnover, an enterprise needs to satisfy several other criteria. Like, the company should be a sole proprietorship, LLC, private firm or partnership that has a business vintage of at least six months. As it is an unsecured credit facility, one’s credit score should also not be below 750.

  1. Extensive Documentation

Financial institutions ask the business to produce documents like their audited financial statements, ownership documents, income proof of the applicant, etc. before sanctioning an MSME loan/SME loan in Ghaziabad. Recently established SMEs generally do not maintain most of these documents, which bar them from availing a loan.

  1. High Interest Rate

As the majority of these loans are unsecured, MSME loan interest rate is considerably high. It can roughly range between 10% and 21 % depending upon the lending institution. Because of this, entrepreneurs can face difficulty in repaying their debt.

Thus, the solution to your funding problems might not lay behind your search for ‘MSME loan provider near me’. Instead, a gold loan in Ghaziabad might be a smarter solution.

Why Gold Loan Is A Better Option Than MSME Loan/SME Loan?

A gold loan provides numerous advantages to a borrower when compared to a traditional MSME loan/SME loan. Few of its aspects that make it a smarter option are:

  1. Utilisation Of Idle Asset

Though gold is a pretty expensive asset, it does not contribute to one’s day-to-day life. An enterprise can make better use of this idle asset and avail a loan by pledging it to expand their business.

  1. End-use Liberty

The borrower is not restricted in the usage of the fund. Instead, an entrepreneur has full liberty to use it as they deem right. Purchase new machinery, pay your employees salary or use it for something else.

But, these are only the primary advantages a gold loan provides. Here, selecting the right lender is vital to ensure the best of benefits, and Rupeek’s industry-first features may offer that.

Rupeek Brings The Most Beneficial Gold Loan

Since availing a conventional MSME loan/SME loan is significantly challenging, a gold-backed loan should be the way to go. We offer one of the safest and most beneficial gold loans in the market with the help of our partnered banks. By choosing us, you get:

  • Highest LTV And Lowest Interest Rate

We provide an LTV or loan-to-value ratio as high as 80% that enables a borrower to get an amount of up to Rs. 1.5 crores. To better understand how we calculate LTV as well as loan value, use our gold loan calculator. Also, our interest rate starts from 0.79% per month, one of the lowest in the market.

  • Simpler Eligibility And Documentation

Any individual who is older than 18 years and possesses gold jewellery is eligible to get an MSME loan/SME loan against gold from Rupeek. Moreover, you only need a handful of documents, making it accessible to any individual or enterprise who is facing a financial crunch.

  • Effortless Overdraft Facility

Should our existing customers feel the need to avail an extended credit line, they can opt for our overdraft facility called Rupeek Quick. It is incredibly effortless as one needs to pledge more gold on their existing loan. With this facility, you get access to funds any time from the sanctioned limit and the interest is charged only on the amount that you have used.

  • Flexible Repayment Options

We have further simplified our customer’s borrowing experience by providing various repayment methods. You can select options like monthly EMI payments, interest pre-payment, one-time bullet payment, etc. as per your convenience.

We have partner banks all across the country that is at most 5km away from your house. If you are looking for us specifically in Ghaziabad, we are there at every major part of this city.

Where To Find Us In Ghaziabad

Locations in Ghaziabad where we are operational are:

  • Raj Nagar Extension
  • Govindpuram
  • Tronica City
  • Mohan Nagar
  • Crossings Republik
  • Sahibabad
  • Loni
  • Vaishali
  • Meerut Road
  • Vasundhra
  • Shastri Nagar
  • Kaushambi
  • Indirapuram
  • Kavi Nagar

If you are from these localities, you can get our online gold loan at your doorstep, ensuring your gold’s safety. This yet again provides an upper hand to Rupeek when compared with MSME loan/SME loan. Be a part of Ghaziabad’s development and simultaneously improve your business by availing our gold-backed loan today.

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Benefits of Gold Loan over MSME/SME loan.
Today's maximum loan value/gm **
max LTV

Last Updated :

Last Updated :

  • <1 lakh
  • 2 lakh
  • 3 lakh
  • 5 lakh
  • 10 lakh
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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 is the procedure of calculating the interest rate for a gold loan?

Gold loan interest rates are calculated differently by every individual lender; it is up to their liking what percentage rate they will levy. However, this rate of interest is heavily influenced by the current market value and the carat of gold in concern.

  1. Are all types of gold articles accepted by Rupeek?

The lending partners of Rupeek do not accept gold bars or coins at the moment. The only accepted articles are jewellery made up of 18 carats gold or above.

  1. How long does it take for a Rupeek gold loan to get sanctioned?

In average, your gold loan will be sanctioned within 45 – 60 minutes from the time of application.

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