MSME Loan in Patiala

Patiala, the fourth-largest city in Punjab, is the home to Sheesh Mahal, Bahadurgarh Fort and other such historical spots. Resultantly, the city accounts for huge tourist footfall each year.

Apart from being a tourist destination, the city is known for its excellence in trade, IT industries, and burgeoning textile and manufacturing sector. As per a DCMSME report, Patiala accounts for about Rs.184427 lakh turnover from its MSE Sector and around Rs.770020 lakh from the large & medium industry sectors.

This data testifies that the city persuades many start-ups to proceed with business and trade activities. Resultantly, several micro, small, and medium enterprises located in the city seek regular cash flow for their operations.

MSME loan/SME loan in Patiala is, thus, in high demand in the city, with businesses looking for viable options to acquire funds to expand the scope of their ventures.

Nonetheless, before proceeding to learn how to get MSME loans, business owners should learn about a few pertinent details associated with such funding options.

Purpose Of MSME Loans

Businesspersons can opt for an MSME loan to fulfil the following purposes:

  • Meet Working Capital Requirements: Any business can struggle to function optimally without adequate working capital. Hence, if a businessperson is on the verge of running out of funds to finance daily operations, he/she can obtain an MSME loan/SME loan in Patiala.
  • Accelerate Growth: By acquiring an MSME loan, business owners can purchase new machinery to increase the output and subsequently maximise profits.
  • Buy Stock: When an enterprise grows at a fast pace or during peak seasons, business owners need to ensure sufficient inventory at all points to meet the increasing demand. In case of a shortage of supply, they can utilise a loan to replenish their inventory.
  • Expand Operations: Businesses require a considerable amount of capital to open a new facility or introduce different products or services. They can obtain an MSME loan to fulfil such financial requirements.

How Does An MSME Loan Work?

An MSME loan/SME loan in Patiala in Patiala is a financial product designed to offer financial assistance to micro, small and medium businesses. Such loans come with convenient terms to aid budding entrepreneurs to manage business expenses effectively.

A potential borrower wondering needs to fulfil several MSME loan eligibility criteria to apply. Few of such criteria a borrower needs to fulfil include -

  • A high CIBIL score, preferably 750 and above
  • The entrepreneur has to show a bona fide vintage of the business. It must be in operation for at least 6 months to 1 year.
  • One has to present accounts of revenue from the business
  • Details on the business type and balance sheet
  • A clean credit history
  • The applicant must be aged between 25-65 years

Failing to fulfil the Patiala SME loan criteria can lead to the cancellation of an MSME business loan application. Apart from fulfilling the eligibility criteria, borrowers have to submit certain documents.

Documents Required For MSME Loan

Besides fulfilling the eligibility criteria, applicants must submit the following documents to avail an MSME loan/SME loan in Patiala:

  • Identity Proof: Aadhaar Card, PAN Card, or any other government-issued ID proof
  • Address Proof: Utility bills, passport, etc.
  • Business Address Proof: Rental agreement, utility bills, etc.
  • Income-related Documents: Bank account statement of the past 6 months, CA-verified profit and loss account, a balance sheet of the past two financial years, etc.
  • Proof Of Business Ownership: Memorandum of Association (in case of companies), Partnership deed (in case of partnership firms)
  • Tax Documents: Income tax returns (ITRs), sales tax returns, etc.

Individuals must note that these requirements may vary from one lending institution to another.

Features Of MSME Loan

Here are some of the characteristics of an MSME loan/SME loan in Patiala:

  • Businesspersons can take out more than Rs. 50 lakhs to fulfil various financial requirements of their organisation.
  • MSME loans come with both floating and fixed interest rates. Nonetheless, individuals shall note that the interest rate depends on their choice of the loan provider. Usually, the MSME loan interest rate can go up to 22% p.a.
  • Since MSME loans are an unsecured financing option, individuals do not need to place any collateral to obtain funds.
  • The repayment periods for MSME loans range from 1 to 15 years. It depends on the source of such a loan. In most cases, the decision of the precise tenure is with the borrower.
  • Depending on the provider, a borrower can receive their approved amount in 2 days, or it can take up to 8 days and sometimes longer than that.

As an alternative, businesspersons can choose to opt for an MSME loan/SME loan in Patiala against gold offered by Rupeek. Unlike conventional MSME loans, this financing option has lenient eligibility criteria and involves minimal documentation. Businesspersons can get instant access to funds and pay interest as low as 0.49% p.m.

Place a request via our app or web platform and initiate the gold-backed MSME project loan application procedure. One can avail our doorstep service from the following areas in Patiala:

  • Rajpura
  • Nabha
  • Bhadson Road
  • Samana
  • Patran
  • Devigarh
  • Bhadson
  • Ghanaur
  • Amloh
  • Banur
  • Ghagga

With multiple benefits and borrower-friendly options, any new or existing business can turn to Rupeek gold loan to boost their liquidity. So, stop asking Google for ‘MSME loan providers near me’ and apply for a gold-backed MSME loan/SME loan in Patiala.

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Benefits of Gold Loan over MSME/SME loan.
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Today’s max loan value/gm ()
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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. Will late EMI payments for MSME loan affect the CIBIL score?

Your credit score is affected if you do not repay an MSME loan EMI on time.

  1. Can I use an MSME loan to finance personal expenses?

It depends on where you source the loan from. Government-backed MSME loans come with end-use restrictions mostly. Hence, individuals cannot use the loan amount to finance personal expenses. One can use MSME loans provided by banks and NBFCs to address personal requirements.

  1. How can I calculate MSME loan EMIs?

Individuals can calculate MSME loan/SME loan in Patiala EMIs conveniently with the help of an MSME loan EMI calculator available on the lender’s website.

  1. Where can I get an MSME loan?

An MSME loan is obtainable from various sources, including banks, NBFCs, and dedicated government portals. You can also visit a lending institution’s branch to apply for an MSME loan/SME loan in Patiala.

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