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Madurai

MSME loan in Madurai

Home to the famous Meenakshi Temple, Madurai is an emerging automobile hub of India. Industry leaders like Isuzu, Volkswagen, Mahindra, Toyota, and Tata, among others, have units in and around the city. Along with that, agriculture is a significant contributor to this city’s economy.

Madurai also hosts numerous micro-and small-scale companies. To compete with the industry giants in this city, sustain, and grow, businesses need adequate funds at all points. An MSME loan/SME loan in Madurai can significantly benefit enterprises in that regard.

MSME Loan Offers A Helping Hand

An SME loan is tailored to meet the unique monetary requirements of micro, small, and medium enterprises, the primary contributors to this nation’s economy.

Here are a few features of this financial product –

  1. Multi-Purpose: MSME business loans are equipped to meet an array of business requirements. For instance, companies can opt for the CLSS for Technology Upgradation scheme to upgrade or buy equipment. Companies can also choose end-use restriction-free bank loans for businesses as well.
  2. Online Availability – Most of the MSME loans these days are available online. Companies can search for ‘MSME loan providers near me’ to view these options and apply one as per their needs.
  3. Collateral – Certain government-backed loans need borrowers to pledge a business-related asset like equipment. Bank loans, on the other hand, do not require any collateral.
  4. Extended Loan Tenure: The tenure for the new loan scheme for MSME can go up to 7 years, further helping with the repayment.

These benefits of MSME loan/SME loan in Madurai can be obtained under several fund schemes offered by government and private financial institutions.

MSME Loan Schemes Available In India

India’s government has launched several loans and subsidy schemes to address small businesses and start-ups’ financial requirements. Some of these are as follows.

  • Credit Guarantee Fund Trust For Micro And Small Enterprises (CGFTMSE): This is a collaboration with SIDBI to offer funds up to Rs.1 crore to start-ups and existing businesses.
  • MUDRA Yojana: This scheme offers loans from Rs. 50,000 to Rs. 10 lakhs to enterprises, depending on their developmental stage.
  • National Small Industries Corporation (NSIC) Subsidy: Small and medium businesses can get financial assistance with raw material purchase and marketing costs under several schemes of NSIC.
  • Coir Udyami Yojana (CUY): This is an amalgamation of a loan and a credit-linked subsidy scheme. Borrowers can acquire a working capital loan for one cycle and costs of setting up coir manufacturing units.

Besides these government-aided schemes, entrepreneurs can also benefit from small business finance offered by banks and NBFCs. Individuals can choose from variants like equipment finance, working capital loans, letter of credit, overdraft, and term loans.

To avail of theses beneficial schemes, businesses need to fall under the categories specified by the MSME loan scheme 2020. These are:

  • Micro: Investment up to Rs. 1 crore, annual turnover less than Rs. 5 crore
  • Small: Maximum investment in P&M should be Rs. 10 crores; turnover must not exceed Rs. 50 crores
  • Medium: Investment should be less than Rs. 20 crores; turnover up to Rs. 100 crores

Enterprises falling under these categories can proceed with the MSME loan process of application.

MSME Loan/SME Loan In Madurai – Application Procedure

Potential borrowers can follow these steps to get an MSME loan online.

Step 1: Visit the official website of the lending government body or any other financial institution.

Step 2: Select the loan scheme that best suits your business requirements.

Step 3: Fill in the online application form with accurate information.

Step 4: Submit all necessary documents for loan approval.

Besides documentation, enterprises need to meet the following criteria to qualify for an MSME/SME loan in Madurai.

Sl. No.

Eligibility criteria

Requirements

1

Credit Score

Higher than 750

2

Business Vintage

Minimum 6 months, but lenders may prefer a higher bona fide vintage

3

Business Type

Sole proprietorship, Partnership, LLC, Private Limited and Public company

4

Yearly Turnover

Minimum Rs. 25 lakhs, but can vary depending on the financier.

Based on the fulfilment of these MSME loan eligibility criteria, lenders decide whether to accept or reject a particular application. However, meeting such stringent norms can be a challenge for some. In such instances, enterprises can bypass it by opting for a gold loan.

Gold loans, being secured in nature, offer less stringent eligibility norms and more favourable loan terms. Furthermore, with lenders like Rupeek, you can enjoy a smooth gold-backed MSME loan procedure at your doorstep.

Availability Of Rupeek’s Services In Madurai

Enjoy our instant doorstep MSME loan/SME loan against gold in and around the following localities –

  • Alanganallur
  • Anna Nagar
  • Sholavandan
  • Tirumangalam
  • KamarajarSalai
  • Vadipatti
  • Vilakkuthoon
  • Madurai Main
  • Othakadai
  • Tirunagar
  • Thiruparankundram
  • Palanganatham

Avail an instant MSME loan/SME loan in Madurai to address all cash flow woes. Enjoy our doorstep service, lowest interest rates, substantial loan, and top-notch collateral safety with just one click!

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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 -
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Frequently asked questions

  1. Can I get an MSME loan without collateral?

You can apply for an unsecured business loan with a bank or NBFC without submitting any collateral. Specific government schemes do not involve any collateral either.

  1. What is PMEGP?

The Prime Minister Employment Generation Programme (PMEGP) is a government-aided credit-linked subsidy scheme that aims to generate self-employment by providing 15-35% of the project cost as subsidy. The Khadi & Village Industries Commission (KVIC) is responsible for implementing this scheme at the national level.

  1. When should I opt for invoice financing?

Invoice financing can come in handy when customers delay payments after product delivery. To compensate for cash crunches during this period, entrepreneurs can use unpaid invoices to realise their outstanding at a discounted rate. This is repaid once customers make payments.

  1. Can I obtain a MUDRA loan online?

You can acquire a MUDRA loan online from any of the empanelled financiers’ websites. Search for ‘MUDRA loan near me’ to view the financial institutions facilitating this scheme and proceed accordingly.

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