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MSME loan in Indore

Located in Madhya Pradesh, Indore is the commercial capital of the state. The city is renowned for its Rajwara Palace and Lal Bagh Palace, both of which are key tourist attractions. The residents of Indore, or Indories, are known for their affability.

Over the years, the city has emerged as a startup hub. Today, Indore’s economy is expanding in all directions, including traditional agro-industries as well as modern corporates. So, it is imperative for businesses, especially for smaller firms like MSMEs and SMEs, to compete with larger entities. And, an MSME loan/SME loan is the best means to invest in business expansion for these organisations.

Types of MSME/SME Loans

Indore’s MSMEs and SMEs require funds to establish their businesses, strengthen finances and undergo expansion, diversification or modernisation. All of these operations call for substantial funding, and business loans in Indore Collectorate cover most of them.

The government of India extends credit facilities to SME/MSME MP and with its MSME loan scheme 2020. Some of these schemes are:

  • Pradhan Mantri Mudra Yojana (PMMY)
  • Credit Guarantee Trust Fund for Micro & Small Enterprises (CGT MSE)
  • Prime Minister’s Employment Generation Programme (PMEGP)

Although resourceful, however, these schemes are known to require a considerable processing time. Therefore, if you need urgent funds, a government-backed MSME loan/SME loan is not a reliable option.

Business owners also have another alternative to raise funds. They can opt for an MSME loan offered by several financial institutions in Madhya Pradesh. The availability of these loans depends on your business profile, its credibility, as well as the policies of the lending institution.

MSME Loan Eligibility and Documentation

Firstly, in order to avail an MSME/SME loan, a business must meet some specifications to classify as a micro, small or medium enterprise. The table below summarises these criteria:

Classification

Micro

Small

Medium

Investment

Up to Rs. 1 crore

Up to Rs. 10 crores

Up to Rs. 20 crores

Turnover

Up to Rs. 5 crores

Up to Rs. 50 crores

Up to Rs. 100 crores

Furthermore, while applying for an MSME loan, borrowers need to provide a lender with several documents. Given below is a generic list of documents that determine your MSME loan eligibility:

  • Proof of Identity: Aadhaar card, PAN card, Passport, Voter’s ID card.
  • Proof of Residence: Rental agreement, ration card or electricity bills
  • Income Proof: copies of P/L account and Balance sheet of the last two years
  • Business Address Proof: Lease agreement, rental agreement, or utility bills
  • Tax Documents: PAN card, IT returns, sales tax returns, etc.
  • Other Documents: A lender may require additional documents like revenue projections, project report, and the like.

On the downside, the traditional MSME loan process can be time-consuming and thus, quite taxing for some individuals. Therefore, for those faced with an emergency cash requirement, these loans are not feasible. Additionally, this process is especially challenging for entrepreneurs who lack enough credibility for an unsecured loan.

As a result, many business owners nowadays are steadily switching to simpler alternatives like a gold-backed loan for rural entrepreneurship and urban entrepreneurship.

Advantages of a Gold Loan over an MSME Loan/SME Loan

Gold loans eliminate the stringency of traditional MSME loans. Therefore, these secured loans are ideal for those who do not possess MSME loan eligibility or supporting documents. Here are some advantages of MSME business loans against gold:

  • Idle Asset

Gold is a high-value, non-consumable asset. Since gold is available in a finite quantity, it has an inherent value that other commodities do not necessarily have. So, instead of letting this wealth sit idle, it can be conveniently used as collateral to avail a gold loan.

  • Minimal Documentation

Loans against gold do not require you to provide the lending partner with an extensive list of documents. As a result, the entire process is hassle-free and convenient compared to traditional MSME loans. Furthermore, financial institutions approve these loans at the earliest, which significantly reduces their processing time. These features make gold loans an ideal option for quick funding.

  • No End-Use Restriction

Unlike some types of government-backed loans, the end-use of gold loans is not monitored or restricted. This offers freedom and flexibility to borrowers who can use the funds as per their needs and requirements.

When you search for ‘gold-backed MSME loan provider near me’ you are faced with a variety of lenders. However, it is crucial for borrowers to choose a lending partner that suits their requirements. Therefore, we recommend that you research well about a lender’s policies, terms and conditions, repayment procedure, etc. and decide accordingly. When it comes to MSME/SME loans in Indore, our lending facilities at Rupeek can prove to be beneficial for you.

Rupeek Gold Loan for Urban and Rural Entrepreneurship

Business owners looking for an MSME/SME loan can be assured of the following advantages of Rupeek’s gold-backed loans:

  • Affordable Rates of Interest

Low interest rates ensure the minimum cost of borrowing. Our interest rates start from 0.79% per month, which is a lot less than those of other banks and NBFCs. As a result, when you choose our gold-backed loans for MSMEs or SMEs, you repay a much lesser total payable amount.

  • Less Documentation

We require only KYC documents and utility bills or rental agreements to sanction gold-backed loans. So, the entire process is less time-consuming, hassle-free and convenient for borrowers.

  • Instant Disbursal

The procedure of availing a loan with Rupeek, starting from application to getting approval, is completed within 45-60 minutes. So, if you are facing an emergency cash shortfall or require urgent cash, we are an ideal option for you.

  • Doorstep Service

To further simplify the process of getting a gold loan in Indore, we offer instant doorstep services. This also ensures that you do not risk carrying valuable assets outside your home. Therefore, our loan manager will reach you at our doorstep with a loan appraisal kit.

  • Highest Per Gram Rate

At Rupeek, we offer the highest per gram rate, which can go up to 80%. You can evaluate the total borrowed amount that you will get with us by using our gold loan calculator.

  • Flexible Repayment

Our customers enjoy the flexibility to repay the loan amount by choosing any instalment within the tenure. You can pay fixed EMIs on a monthly basis or as per your cash flow and convenience within the tenure.

  • Gold Overdraft

Our financial services include a distinctive facility called Rupeek Quick. It is an overdraft facility through which borrowers can get an extended credit line by pledging their gold. Moreover, you can enjoy the added benefit of paying interest amount just on the utilised sum of money, which increases your savings.

Rupeek’s Gold-Backed MSME/SME Loan in Indore

Our services are spread out across Indore. You will find us at the following locations:

  • Moti Tabela
  • Indore Khajrana
  • Rajendra Nagar
  • Vijay Nagar
  • Siyaganj
  • Khatiwala Tank
  • Nanda Nagar
  • Sudama Nagar
  • Lokmanya Nagar
  • Pardesipura
  • Indore Cloth Market
  • Radio Colony
  • Bijasan Road

With a gamut of loans in the current market, which ranges from a loan for tissue paper manufacturing to loan for equipment and machinery, it is vital that you pick one that suits your business operations. Moreover, business owners need to be smart with their finances and make informed monetary decisions. A gold-backed MSME loan/SME loan, like Rupeek, will help you achieve your business goals. So, choose us and take a step closer to your dreams.

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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. Is the CIBIL score required for an MSME loan against gold?

No, a CIBIL score is not required to avail a gold loan. The eligibility criteria for sanctioning a gold loan do not include a credit check of any sorts. Only KYC documents are required to be submitted to avail gold loans.

  1. How to apply for a gold-backed MSME loan/SME loan with Rupeek?

A gold loan with Rupeek can be applied in three simple steps. First, you need to request a loan by reaching out to us via our website, mobile application or a phone call. Our representative will arrive at your doorstep and complete the KYC process. The loan amount is then transferred to your bank account.

  1. How long will it take for me to get my gold loan?

The KYC verification process, gold evaluation, signing of the loan agreement and disbursal of funds takes around 30 minutes.

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