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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.
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.
Whether opting for a government-backed MSME loan or a bank product, some of the key characteristics of such funds are as follows.
There are also specific eligibility and documentation requirements for a successful application process.
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:
Besides these, applicants need to submit the following documents when applying for an MSME loan online:
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.
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 -
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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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.
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.
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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