Guntur is the third most populous city in the state of Andhra Pradesh. The city has the largest chilli market in Asia to its name, and the export of chilli, cotton and tobacco powers its economy. Over the years, Guntur’s economy has witnessed tremendous growth in three key sectors, namely Agro and Food Processing, Textile and Apparel and Cement.
However, small-scale organisations, like MSMEs/SMEs, require adequate financial support to keep pace with this evolving economy. In this regard, most business owners opt for an MSME loan/ SME loan in Guntur to finance the growth of their businesses.
Budding entrepreneurs or well-established businesspersons can opt for an MSME business loan to fulfil the following objectives:
Most financial institutions in India extend loans for MSMEs/SMEs, and you can apply for one by visiting their website or app or visit their nearest branch. To avail such a loan, you must meet the stipulated eligibility criteria and provide required documents as proof of your credibility. While these requirements vary between various lending institutions, the following is a rundown of what they generally entail –
MSME loan Scheme 2020 issued by the Government of India has modified the pre-existing classification of MSMEs/SMEs. The new criteria to classify a business as an MSME/SME includes:
Moreover, there are additional eligibility criteria that applicants need to fulfil to avail an MSME loan/SME loan in Guntur. Let’s delve into the details:
Lending institutions might check a few other factors when evaluating an MSME loan application.
The SME/MSME loan process also mandates borrowers to submit a list of documents, such as -
Here are some of the features of an MSME loan/SME loan in Guntur:
Several government bodies in Andhra Pradesh, like DC MSME and MSME-DI, alongside financial institutions, provide various financing options for MSMEs/SMEs in the state. For instance, Andhra Bank launched the MSME-Mitra scheme in 2018 in an effort to mitigate the liquidity crunch that MSMEs often encounter.
However, factors like higher interest rates and a longer processing time can be off-putting in some cases. Moreover, the stringent MSME loan eligibility criteria and tedious documentation process can be an obstacle for most enterprises. Hence, secured loans, such as a gold loan offered by Rupeek, stand out as an apt alternative to MSME loan/SME loan in Guntur.
If you are in Guntur, you can opt for our services at any of the following locations by simply searching for ‘MSME loan/SME loan near me’ -
AP industrial profile holds a colossal range of businesses, including corporate giants to MSMEs and small businesses owned by female entrepreneurs. Each of these organisations needs to make crucial decisions in order to scale their business. And, when it comes to finances, Rupeek lends a hand and eliminates the complexities in loan proceedings. So, choose our gold MSME loan/SME loan in Guntur and enjoy a hassle-free borrowing experience.
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Most financial institutions prefer a CIBIL score of 750 and above. Hence, it’s not possible for individuals to avail unsecured MSME business loans with a credit score of 500.
MSME loan interest rates usually range from approximately 8% to 22%. Interest rates on this type of credit option depend on the lending institution. Borrowers can search ‘SME loan provider near me’ to find out the loan providers nearest to their locations
Certain lending institutions do provide an MSME loan overdraft facility. It enables businesspersons to make withdrawals into their account from a pre-approved credit limit to meet various business-related requirements. Moreover, they have to pay interest only on the amount they use.
Lending institutions usually do not extend collateral-free MSME loans to applicants with a low credit score. Government schemes can be an option in that regard, but a minimum credit score is mandatory. One can consider a secured MSME loan/SME loan in Guntur to that end.
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