The smart city of Jalandhar is known for its mythical origin and reminiscence of history. Home to nearly 20,042 small and medium industries, Jalandhar has been a significant contributor to Punjab’s economy. From the outsized agriculture sector to small highway dhabas, this city is rapidly creating opportunities for micro, small and medium-scale enterprises.
Moreover, the city keeps attracting the populace with employment prospects from various parts of Punjab, especially the rural areas. This influx creates a significant market for budding and already-established enterprises.
Micro, small, and medium-scale companies based on Jalandhar can capitalise on these opportunities better with an MSME loan/SME loan in Jalandhar. The funds can be used to meet various expenses in their company without hurting the business finances.
As the name suggests, an MSME loan is designed to cater to the funding requirements of micro, small, and medium enterprises. Both government schemes, as well as private financiers, extend this financing option. Government options include MSME loan scheme 2020, Prime Minister Employment Generation Programme, etc.
Here are some of the characteristics of an MSME loan Jalandhar:
End-use Restrictions: Government-backed MSME loans often involve end-use restriction, meaning borrowers can only use the amount for meeting a specific purpose. Bank loans, on the other hand, are free of such constraints. Enterprises can utilise such a loan for various purposes.
Here’s how MSME loans can help businesspersons:
To obtain funding from government-backed schemes, organisations need to meet the eligibility parameters set for MSMEs. This eligibility is based on two premises, primarily –
MSME/SMEs considering term loans from banks or NBFCs have to satisfy a different range of criteria. Following are the general MSME loan eligibility criteria necessary to be fulfilled by a potential borrower.
It is recommended to check the MSME loan procedure and terms before proceeding with the application.
Apart from satisfying these parameters, a borrower needs to submit the following documents –
The extensive parameter checks and documentation can make the process for loan disbursal time-consuming. It can become a burden for an entrepreneur requiring emergency funds.
In this regard, a gold loan offered by Rupeek can prove to be a better alternative. Individuals can obtain funding against their gold articles with only their KYC documents. Moreover, contrary to MSME loans, this form of financial assistance involves lenient eligibility criteria and low interest rates. Residents of the following areas in Jalandhar can avail our doorstep services.
So, you can finally stop scanning Google for ‘MSME loan providers near me’ and contact Rupeek to ensure a hassle-free loan disbursal experience. Place a request via our app, and our loan manager will arrive at your location within 30 minutes to complete the necessary formalities for availing a gold-backed MSME loan/SME loan in Jalandhar.
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Individuals can opt for an MSME loan even if they are repaying an existing personal loan. However, they must keep in mind that lending institutions sanction an unsecured MSME loan if the borrower’s credit score is at least 750. He/she must also boast a standard FOIR, preferably below 50%, to be eligible.
It depends on the source. An MSME business loan offered through govt. schemes come with end-use limitations. Therefore, individuals cannot use the loan amount to finance expenses that are unrelated to their business.
Yes, not paying your MSME loan EMIs on time will have an impact on your credit score. This will hamper your chances of getting financial assistance in the future. Hence, it’s imperative that borrowers pay their monthly instalments on time.
Borrowers can conveniently compute their MSME loan EMIs by taking the help of an online MSME business loan calculator. These tools are provided by financial institutions free of cost.
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