Lucknow

MSME Loan in Lucknow

Lucknow is the capital of Uttar Pradesh and a major commercial centre in Northern India. The multicultural city of Lucknow has a strong association with history and is widely touted as the North Indian Cultural and Artistic hub. Places like Bada Imambara, Chhota Imambara, British Residency, Rumi Darwaza, Constantia, and Moti Mahal Palace serve as emblems of the true artistry of Lucknow.

Besides its cultural heft, the Uttar Pradesh capital accounts for a significant share of UP’s MSME exports, especially for Chikan embroidery. Automotive, aeronautics and distillery chemical industries are also significant contributors to Lucknow’s economy.

However, financing various business-related expenses and expanding operations can often become a challenge for most business in this city. Opting for an MSME loan/SME loan in Lucknow can be an effective solution during such instances.

MSME Loan - An Overview

MSME loans are an unsecured form of financial assistance offered by financial institutions to business owners of micro, small, and medium-scale organisations for various financial requirements.

The categorisation of MSMEs is now uniform for manufacturing and services enterprises, as per the new loan scheme for MSME. The table given below shows the classification of MSME/SMEs as per investment and turnover:

Type of Enterprise

Micro

Small

Medium

Manufacturing and services

The maximum investment amount should be Rs. 1 crore; whereas, the annual turnover should be limited to Rs. 5 crores.

The maximum amount of investment should not be over Rs. 10 crores; whereas, the annual turnover should be a maximum of Rs. 50 crores.

Investment amount should not exceed Rs. 20 crores; whereas, the annual turnover of the company should not be more than Rs. 100 crores.

Benefits Of An MSME Loan/SME Loan In Lucknow

Here are some of the ways MSME loans can benefit businesspersons:

  • Expansion of Operations

Any MSME setup in UP requires a substantial amount of capital to set up a new plant and machinery, open a new branch, or introduce a new product line. By availing an MSME loan, individuals can raise an adequate amount of capital to finance these expenses and accelerate the growth of their business.

  • Fulfil Working Capital Requirements

A business requires sufficient working capital to finance expenses, such as purchasing raw materials, wages, electricity. Businesspersons may fail to run the daily operations of their business without the necessary funds. To combat such issues, opting for an MSME business loan can be an ideal solution.

  • Faster Implementation Of Strategies

Since most MSME loans are collateral-free, these credit options involve a faster processing time. Thus, it enables business owners to execute their plans and strategies much quicker.

  • Improves Credibility Of A Business

By opting for an MSME loan in Lucknow Cantonment, individuals can give their business a huge boost and maximise their profits. This will positively impact their company profile and increase their goodwill. It also has an advantageous effect on a business’s credit rating.

Nevertheless, to avail an MSME loan in Lucknow, there are various eligibility parameters that individuals need to fulfil. They also need to submit certain documents to get access to funds. Let’s delve into these details.

MSME Loan – Eligibility Criteria

MSME loans are provided by financial institutions (banks and NBFCs) and under various MSME loan schemes by the Government. Businesspersons wondering how to get MSME loan in Uttar Pradesh must fulfil the basic eligibility parameters set by financial institutions.

Though the requirements vary with each lending institutions, the essential factors that are taken into consideration include:

  • The age of the applicant should be between 18 – 66 years old.
  • An applicant must have a credit score of 750+.
  • An applicant should boast a good repayment history.
  • The minimum annual turnover of the enterprise must be Rs. 25 lakhs or above.
  • The enterprise must have a business vintage of a minimum of 2 years and in profit.

MSME Loan In Lucknow Documentation

Sales tax documents

9.

Last year’s GST returns

10.

ITR documents of the previous 2 years

The list mentioned above is generic and financial institutions may ask borrowers to provide additional documents if required. As is apparent, it might be challenging for new and small enterprises to avail a bank loan in Lucknow owing to stringent credit score-checks and extensive documentation procedure.

Businesses can opt for government schemes to circumvent these hassles. However, unregistered MSME/SME units cannot avail the facilities offered under the MSME loan scheme 2020, such as the Emergency Credit Line Guarantee Scheme.

Even eligible enterprises may not find government schemes a smart financing choice during emergencies. That’s because these loans take more than 8 days to come through.

Thus, entrepreneurs looking for easy, quick, and hassle-free financing can opt for MSME loans against gold from Rupeek. Businesspersons in Lucknow can avail our doorstep services from all the major areas mentioned below:

  • Raibareli Rd
  • Mubarakpur
  • Lucknow chowk
  • Gomti Nagar
  • Alambagh
  • Charbagh
  • Cimap
  • Qaisar Bagh
  • Indira Nagar
  • Mohanlalganj
  • Jankipuram

Place a request via our app to get the best gold-backed MSME loan/SME loan in Lucknow.

Rupeek ad
Benefits of Gold Loan over MSME/SME loan.
max LTV

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 -
Rupeek ad

Frequently asked questions

  1. What is the maximum MSME loan amount in Lucknow?

The maximum loan amount that one can acquire primarily depends on the financial institution. Usually, businesspersons can raise more than Rs. 50 lakhs by opting for an MSME loan/SME loan in Lucknow.

  1. What is the MSME loan interest rate?

Usually, the MSME interest rate can be anywhere between 8% to 22%. It depends on the lending institution you choose.

  1. How can I apply for an MSME loan in Lucknow?

Individuals can initiate the MSME loan process by either placing a request online or directly visiting the lender’s branch.

Rupeek ad
gold img
Apply for Gold Loan 30 Minutes Doorstep Service
close
+91
Please enter valid Mobile Number
close
success img

Loan Request Successful

Your request has been received, our customer relationship manager has been notified and will call you shortly