MSME Loan in Rajahmundry

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.

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

2. 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.

3. 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.

4. 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.

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.