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Kadapa

MSME loan in Kadapa

Kadapa, formerly known as Cuddapah, surrounded on three sides by Palkonda and Nallamalai hills, is one of the famous cities of Andhra Pradesh. The historical aspects found in Kadapa have made the place a notable attraction point among tourists. From Anjaneya Swamy temple to Ameen Peer Dargah and Bhagavan Mahaveer Museum, this municipal city is enriched with remarkable heritage sites.

Apart from its cultural significance, Kadapa also boasts of several commercial industries pertaining to cement, textile mills, mining, etc. A wide range of micro, small and medium enterprises (MSMEs) have also made a strong presence in and around the city over the years.

Entrepreneurs in Kadapa can avail an MSME loan/SME loan in Kadapa to meet their cash flow needs, undertake large-scale projects, expand operations, or even kickstart their enterprise. However, before availing, one should be aware of all the features MSME loans come with to utilise its benefits deftly.

Definition of MSME

According to the Micro, Small and Medium Enterprises Development Act, 2005, the definition of MSME depends on its investments in plant and machinery. Also, there used to be a segregation between manufacturing units and organisations rendering services. Here are the details –

Classification

Micro

Small

Medium

Manufacturing unit

Up to Rs. 25 lakhs

Not more than Rs. 5 crore

Up to Rs. 10 crore

Service sector

Not more than Rs. 10 lakh

Up to Rs. 2 crore

Up to Rs. 5 crore

However, on 1st June 2020, under the Aatmanirbhar Bharat Abhiyan, the Ministry of Micro, Small and Medium Enterprises revised MSME’s classification. Instead of just considering the investment factor, under the new definition, the company’s annual turnover will be accounted for as well. Moreover, the difference between manufacturing and service sector units no longer exists in this classification. Here are the details of the new regime –

  • Micro units: Investment threshold in Rs. 1 crore, and turnover up to Rs. 5 crores 
  • Small units: Investment of up to Rs. 10 crores, and annual turnover up to Rs. 50 crores
  • Medium units: Investment not more than Rs. 50 crores, and yearly turnover up to Rs. 250 crores

Companies that fulfil these above-mentioned requirements are eligible to apply for an MSME/SME loan in Kadapa from various financial institutions.

Top Features Of MSME/SME Loans

Here is a list of MSME loan features one should know before applying:

Specified Usage

Most government-sponsored new loan schemes for MSME come with a pre-defined usage of the loaned sum. In other cases, however, there’s no restriction on the usage, and borrowers can utilise the borrowed amount to whichever avail they see fit. It’s imperative that one is clear about individual schemes’ policies before applying.

Collateral Requirement

In the case of MSME loan in Kadapa, the key advantage is that individuals are not required to pledge assets. However, there are specific eligibility criteria applicants have to meet in order to avail the loan.

Loan Amount

For budding business owners, it is important to invest in machinery, hire staff and include better tools that eventually bring them more revenue. Getting the desired amount helps entrepreneurs in executing these plans. Individuals meeting the MSME loan eligibility can get up to Rs.1 crore as a loan to invest in their business.

Repayment Tenure

The repayment tenure of MSME/SME loan in Kadapa makes it more convenient for business owners. The tenure ranges up to 15 years or 180 months, in some cases.

Repayment Flexibility

The repayment flexibility further helps entrepreneurs to repay their credit without any hiccups. Along with easy EMIs, individuals can also opt for a part-payment facility or foreclose their loan whenever they want.

Disbursal Period

The application to the disbursal process takes around 24-72 hours. However, in the case of government-endorsed MSME loans, disbursal can take up to 8 days or even a few weeks. Thus, individuals must be thorough about this period and the various back-end formalities before they go for any particular MSME/SME financing option.

To complete the MSME loan procedure successfully, one needs to meet the eligibility criteria set by a financial institution.

Eligibility Criteria For MSME/SME Loan In Kadapa

  • Credit score: 750 or above
  • Business vintage: Minimum 2 years
  • Annual turnover: Minimum 25 lakhs

Along with these, business owners need to submit a thoroughly laid out business plan with revenue projections. Also, lenders may prefer individuals with no previous payment defaults. Nevertheless, a point to note here is that the eligibility requirements for this financial product can vary from one lender to another.

Even though the eligibility requirements for an MSME loan/SME loan are not that extensive, smaller enterprises often face difficulties regarding the documentation procedure. It usually takes several days for the loan to get sanctioned and disbursed. Therefore, relying on it for emergencies may not be a smart option.

As an alternative, you can opt for a gold loan to avoid the long and tiresome documentation process. A gold loan mainly helps expedite the process of gathering funds for any business-related emergency. One can consider it as another form of MSME loan scheme 2020 as the objective is similar, only with a more hassle-free process.

Furthermore, with lenders like Rupeek, such secured financing options are more accessible to local business owners, with our extended presence across all regions in Kadapa.

Where Does Rupeek Offer Services In Cuddapah?

Here is a list of all the areas in Kadapa where you will find our services:

  • Badvel
  • Rayavaram
  • Porumamilla
  • Rayachoti
  • Ganganapalli
  • Vontimitta
  • Galiveedu
  • Rajampet
  • Cuddapah
  • Nandalur

Since our services are available all across the state, business owners from any region can avail these offers. Also, to make it more convenient, download the Rupeek app for easy access to MSME loan/SME loan in Cuddapah.

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Benefits of Gold Loan over MSME/SME loan.
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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. What are the government MSME loan schemes in Kadapa?

There are several government schemes available for MSMEs in Kadapa, like Interest Subsidy Eligibility Scheme and Credit Guarantee Trust Fund for Micro & Small Enterprises. Besides these, usage-based plans are also available, such as CLSS for Technology Upgradation, Financial Support to MSMEs in ZED Certification Scheme.

  1. What is the AP Government Scheme for MSMEs?

The Andhra Pradesh government has introduced a One-Time Restructuring (OTR) scheme for MSME/SME loans in Kadapa. It aims to create a new eco-system for this segment and help them with the necessary assistance to grow.

  1. How to apply for an MSME registration?

You can apply for the MSME registration via the Udyam registration portal launched by the Government of India.

  1. What is an Udyogini Scheme?

It is a specially designed plan to promote female entrepreneurship. The aim here is to help women hailing from villages and underprivileged areas to build their own business. Individuals can avail up to Rs. 3 lakhs under this scheme. 

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