MSME loan in Thiruvallur

Businesses can use an MSME loan to fund an array of expenses. While a few government-backed schemes come with end-use restriction, bank loans are usually free of such limitations. Here are a few common use-cases of an MSME loan –

1. Entrepreneurs can use SME loans to boost their organisation’s working capital.
2. MSME loan online can also be used to purchase new equipment or upgrade the existing ones.
3. An MSME loan can be used to meet seasonal demands.
4. MSME loans are an excellent source of support during expansion, diversification, and modernisation.

Entrepreneurs can meet these expenditures and more with an SME loan. However, companies must meet the eligibility criteria to apply for this financing option.

Here are the necessary eligibility requirements that applicants need to fulfil –

1. The enterprise must boast a business vintage of at least 6 months to 1 year. Private financiers prefer a bona fide vintage of 2 years.
2. The applicant must have a 750+ credit score.
3. The yearly turnover of the organisation must be higher than Rs. 25 lakhs.

The documents a businessperson needs to submit includes KYC papers, audited P&L statement and Balance Sheet, documents pertaining to revenue projections, etc.

It’s prudent to check the eligibility and documents required thoroughly when searching for ‘SME loan providers near me’ in Thiruvallur.

Entrepreneurs who are unable to meet these requirements can, however, can be denied an MSME loan. On the other hand, individuals who barely satisfy these parameters may have to service an unsecured MSME loan at high rates of interest.

As already mentioned, the unsecured MSME loan often involves considerable interest payments, which is one of the significant drawbacks of this financial product. However, there are other issues that an enterprise might encounter with a collateral-free loan. These are –

1. Stringent Eligibility Norms

The eligibility criteria required to source this financial product are often strict, and lenders can reject applications in case one fails to meet them. There’s a significant emphasis on having a healthy credit score and clean repayment history.

2. Lengthy Disbursal Period

MSME loans, depending on the source, can be disbursed within 24 hours, or it can take up to 8 days and even weeks. Individuals may want to inquire about SME loan details like disbursal process, eligibility checks, etc., before they approach any financial institution.

3. Limited Loan Amount

When compared to its secured counterparts, an unsecured loan offers a limited loan amount. Moreover, this loan amount is decided on the basis of one’s ability to meet the required eligibility criteria.

For instance, suppose a financial institution offers up to Rs. 50 lakhs to MSMEs. If one applicant meets all the eligibility requirements, i.e. credit score, repayment history, proper business vintage and turnover, etc., he/she may be able to acquire the full amount. Whereas, if an individual has a comparatively weaker credit score and repayment history but meets the other parameters, he/she may end up receiving 80%-85% of such amount. It’s based on the lending institution’s discretion.

To that end, a gold loan serves as an excellent alternative to an MSME loan/SME loan in Thiruvallur. The lenient eligibility requirements and minimal documentation make availing a gold loan hassle-free. Besides, a gold loan has no usage limitation and its disbursal period is also shorter, usually 60 minutes. Thus, entrepreneurs can timely meet all their financial requirements with this financing facility.

Our doorstep services further enhance the benefit of selecting Rupeek. Following your loan request, our loan managers will visit your address for further processing. Rupeek’s loan executives are present in every nook and corner of Thiruvallur, ensuring they can reach your residence within just 30 minutes of a loan application. 

• Periapalayam
• Ponneri
• Pattabiram
• Uttukottai
• Pulicat
• Tiruttani
• Tiruvelangadu
• Minjur
• Kadambathur
• Poonamallee
• Avadi
• Thiruverkadu

All businesses need to support their cash flow and other financial endeavours with debt, either wholly or partly, to sustain and grow. That’s why it is vital to be smart with the choice of MSME loan/SME loan in Thiruvallur.

A gold-backed loan for MSMEs offers an excellent opportunity for entrepreneurs to avail the most of their gold’s worth. Plus, Rupeek’s many industry-first features ensure entrepreneurs are ideally positioned to access all opportunities that come their way, timely.

Contact Rupeek for a fair, fast and flexible solution to your business needs.