MSME Loan in Rajahmundry

Rajahmundry, the birthplace of the Telugu language, is located on the eastern banks of the Godavari River in Andhra Pradesh. The city is a quintessence of art, ethnicity, convention and memoirs of history.

The city is the East Godavari district’s primary commercial hub, with floriculture enjoying particular prominence here. Entrepreneurs and young businesspersons looking to grow and establish their business can opt for an MSME loan/SME loan in Rajahmundry.

What Is An MSME Loan?

As the name suggests, it’s a financing option mainly designed for MSME/SME units. Borrowers can spend the funds to buy equipment and machinery, enhance cash flow, expand business, etc.

It’s available through government schemes as well as offered by commercial banks. Many NBFC’s also provide easy business loans in Rajahmundry against minimum documentation.

What Are The Govt. MSME/SME Loans?

Here are some popular government-backed MSME loan schemes that one should be aware of –

  1. Pradhan Mantri MUDRA Yojana

Launched in 2015, this scheme extends monetary support of up to Rs. 10 lakh to non-corporate and non-firm enterprises. MUDRA or Micro Units Development and Refinance Agency Limited is an NBFC, which is in charge of this financial scheme.

There are 3 sub-categories of this financing scheme based on the stage of development a business is in. Here are the details –

  • Shishu: For budding ventures
  • Kishore: For companies that have begun their operations
  • Tarun: For well-established organisations planning an expansion
  1. Prime Minister’s Employment Generation Programme

This scheme aims to generate employment opportunities for traditional artisans and unemployed youth of the non-frim sectors. The Khadi and Village Industries Commission (KVIC) is in charge of executing this scheme. Moreover, it acts as the nodal agency for this programme. The MSME loan eligibility criteria of this scheme are lenient. Any individual above the age of 18 who has graduated class 8 can apply for this scheme.

  1. Credit Guarantee Trust Fund for Micro & Small Enterprises

This scheme provides credit guarantee schemes to MSMEs without any third-party involvement or collateral. The guarantee coverage for this MSME/SME loan in Rajahmundry ranges from 50% to 85%, depending on the business type. Additionally, any organisation, be it old or new, is eligible for this scheme; they can approach their Regional Rural Banks for further details.

  1. Credit-linked Capital Subsidy Scheme

It’s a popular government scheme where MSMEs receive a subsidy on a technological upgrade. This MSME scheme provides a 15% subsidy on investments of up to Rs. 1 crore. Every business operating in this segment is eligible for the CLCSS scheme. However, the scheme does not hold if old equipment is merely replaced by a new one of the same type instead of an upgrade.

Individuals looking for low-cost borrowing can opt for government schemes. However, these are not conducive to urgent financial requirements. To that end, a bank loan or credit offered by NBFCs can be suitable.

Here are some notable benefits of MSME/SME loans availed from various financial institutions –

  • The procedure for business finance loans in Rajahmundry is simple and quick.
  • There is no restriction on the usage of funds.
  • It provides multiple repayment options, which increases borrower convenience.
  • Small business loan rates in Rajahmundry are competitive, and it further helps with repayment.

Usually, financial products like this do not require any collateral to avail it, which further enhance the convenience of a borrower.

However, eligibility criteria for MSME/SME loan in Rajahmundry set by banks and NBFCs are usually hard to meet for new and small enterprises.

To avoid these inconveniences, entrepreneurs can choose a gold loan instead of searching for the ‘best SME loan provider near me’. It combines the best of both new loan schemes for MSMEs and business loans.

Where To Obtain Gold Loan For MSME In Rajahmundry?

You can locate us in the following areas and request to avail a Rupeek gold-backed MSME loan/SME loan in Rajahmundry.

  • Maredumilli
  • Rampachodavaram
  • Draksharamam
  • Danavaipeta
  • Lakshmi Puram
  • Kadiyam
  • Mandapeta
  • Ramachandrapuram
  • Konthamuru
  • Korukonda

Any new or existing MSME/SMEs in Rajahmundry can obtain a loan from Rupeek in just 30 minutes. They can replenish their working capital or mitigate any financial requirement with our gold-backed MSME loan scheme 2020. Since we have a flexible repayment structure, borrowers can choose the option that suits their monetary profile the best.

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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 ()
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  • 2 lakh
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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. Which bank is best for MSME in East Godavari?

The best bank should ideally offer flexibility in repayment, a high loan value, and charge a low-interest rate. The eligibility criteria and documents required shall also be nominal, and the bank should ensure a quick disbursal.

  1. What is the eligibility criteria for availing an MSME/SME loan?

Any prospective borrower needs to maintain a healthy credit score and clean repayment history to be eligible for an MSME loan/SME loan in Rajahmundry. Also, such enterprises must have the required vintage and annual turnover to apply.

  1. Is it necessary to have a business plan to secure an MSME loan?

A business plan is not compulsory to avail an MSME loan. However, presenting one, along with the application, further improves your eligibility criteria.

  1. Do I need a GST registration to avail MSME loans?

No, it is not mandatory to have a GST number to avail an MSME/SME loan. Enterprises necessarily need to submit their income proof and business vintage documents.

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