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Kakinada

MSME loan in Kakinada

Kakinada, formerly known as Cocanada, is a seaport in Andhra Pradesh. The district headquarters of East Godavari is a significant contributor to the Indian economy with its export of coconuts, cotton, sugar and groundnuts.

As a city on the heels of development, Kakinada offers numerous opportunities to small and micro-scale businesses. Entrepreneurs can capitalise on these with an MSME loan/SME loan in Kakinada.

What Are MSME/SME loans?

Most start-ups and micro, small and medium enterprises (MSMEs) struggle to acquire external funding, given their lack of business assets as well as creditworthiness. Business loan providers in Kakinada, thus, introduced MSME/SME loans to encourage such businesses with adequate financial aid. Entrepreneurs can utilise acquired funds to purchase raw materials, boost production, or meet other business operation costs. Such small business loan schemes also encourage women entrepreneurs and are available under both government bodies and private financers.

Some notable government MSME schemes include Credit Guarantee Trust Fund for Micro & Small Enterprises (CGTMSE), MUDRA Yojana, Prime Minister Employment Generation Programme (PMEGP), and Credit-linked Capital Subsidy for Technology Upgradation (CLCSS). On the other hand, several banks and NBFCs also offer working capital loans and term business loans for MSMEs.

Features Of MSME/SME Loan In Kakinada

Whether opting for a government-backed MSME loan or a bank product, some of the key characteristics of such funds are as follows.

  • Credit Type: Depending on lender-specific policies and the borrower’s repayment capacity, MSME loan/SME loan in Kakinada can be acquired both with and without collateral.
  • Repayment Tenure: Financial institutions provide such funds for a maximum of 15 years. Although this facilitates lower EMIs, it can sum up to higher interest payment in the long run.
  • Loan Amount: Varies across lending platforms. It can go up to Rs. 5 crores in the case of government schemes like MSME loan in 59 minutes.
  • Borrowing Cost: Government schemes come with lower MSME loan interest rate. Commercial banks and NBFCs, on the other hand, charge hefty interest rates starting from 13% on unsecured business loans.
  • Online Application process: Most financial institutions allow individuals to apply for a loan on their official website. Borrowers can, thereafter, get access to an online account to monitor their application progress.

There are also specific eligibility and documentation requirements for a successful application process.

Eligibility And Documentation For Business Loans In Kakinada

According to the new loan scheme for MSME since 13th May 2020, enterprises need to meet the following parameters to qualify for government-backed MSME loan schemes.

Criteria

Micro

Small

Medium

Investment

Up to Rs. 1 crore

Up to Rs. 10 crores

Up to Rs. 20 crores

Annual turnover

Up to Rs. 5 crores

Up to Rs. 50 crores

Up to Rs. 100 crores

The new MSME loan scheme has unified classification criteria for companies in the manufacturing and service sectors, included annual turnover for consideration, and extended the investment limits for wider inclusiveness.

Additional eligibility criteria for individual applicants include:

  • Business Type: Must be a public/private limited company, LLP, partnership firm, or sole proprietorship
  • Age Of Applicant: Should be 18-70 years
  • Business Vintage: At least 2 years in profit
  • CIBIL score: 750+.

Besides these, applicants need to submit the following documents when applying for an MSME loan online:

  • ID Proof: KYC
  • Address Proof: Utility bills, rental agreement
  • Business Ownership Proof: Registration certificate, partnership deeds, etc.
  • Income Proof: Balance sheet and profit and loss statements of the past 2 years
  • Other Financial Documents: ITR documents, bank statements, etc.

Such elaborate documentation and stringent eligibility requirements might make such an MSME loan/SME loan in Kakinada an unviable funding option for several entrepreneurs. Additionally, high interest and processing fees involved in such financing options can be unaffordable for start-ups.

For an alternative with low-interest rates in Kakinada, loan seekers can opt for gold-backed funds from Rupeek Fintech. We stand out among your numerous “MSME loan/SME loan provider near me” search results with offers suitable for small businesses.

Find Rupeek In These Localities

Are you looking for a gold-backed MSME loan scheme 2020 in Kakinada? You can find our service in the nearest localities. Here’s a list -

  • Valasapakala
  • Rameswaram
  • Sarpavaram Junction
  • Vakalapudi
  • Indrapalem
  • Thimmapuram
  • Bhanugudi Junction
  • Gandhi Nagar
  • Madhavapatnam
  • Ramanayyapeta
  • Sri Nagar

Don’t let liquidity issues bother your growth. With our flexible repayment structure, your worries about outstanding balance can rest assured.

Witness your dream business take shape with the successful collaboration of your hard work and Rupeek’s gold-backed MSME loan/SME loan. Here’s to making dreams come true!

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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 types of small business loans offered by banks and NBFCs?

Private institutions offer different types of financial products for MSMEs. These include bank guarantee, term loans, working capital financing, overdraft loan, letter of credit, equipment financing, bill discounting, accounts receivable factoring, and invoice financing, among others.

  1. What is the CGTMSE scheme?

Credit Guarantee Trust for Micro and Small Enterprises is a government-aided scheme that offers up to Rs. 1 crore to start-ups and existing MSME/SMEs, as per their business needs.

  1. How long does it take to get an MSME loan/SME loan in Kakinada?

Government loan schemes generally come with extensive documentation that can cause loan disbursal to take up to 8 days. Banks and NBFCs, on the other hand, sanction funds within 1-3 working days.

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