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MSME loan in Thiruvallur

Situated on the banks of Cooum River, Thiruvallur is one of the fastest-growing cities of Tamil Nadu. Companies like CAT, Mitsubishi, TCL, Delphi-TVS have units in and around Thiruvallur, Tamil Nadu.

The presence of big corporations like these in the city, however, makes it difficult for small businesses to gain a foothold. Smart financial planning and proper utilisation of MSME loan/SME loan in Thiruvallur can help enterprises to sustain and grow to that end.

Usage Of MSME/SME Loan

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.

MSME Loan/SME Loan Eligibility Criteria

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.

Drawbacks Of An Unsecured MSME Loan/SME Loan In Thiruvallur

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.

  1. 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.

  1. 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. 

Localities Of Thiruvallur Where Rupeek Is Operational

  • 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.

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Benefits of Gold Loan over MSME/SME loan.
Today's maximum loan value/gm **
max LTV

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Last Updated :

  • <1 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. What is Tamil Nadu Industrial Investment Corporation?

Established in 1949, TIIC is a financial institution owned by the state government of Tamil Nadu. It provides financial assistance to MSME/SMEs in TN.

  1. What is the NEEDS scheme?

This scheme is operated by the TIIC to extend financial assistance to budding ventures. However, applicants must have a degree, diploma, or vocational training from a recognised institution to be eligible for this programme. Here, the entrepreneurs will get a subsidy of 25% of the total project cost, which is capped at Rs. 25 lakh.

  1. What are the benefits of having an MSME registration?

The benefits of having an MSME registration includes receiving reimbursement against ISO certification charges, getting subsidies on patent registrations, availing funds without any collateral, safeguarded against delayed repayments, etc. Additionally, having this registration also helps entrepreneurs to avail the assistance of various government-backed MSME schemes.

  1. How to register for MSME certification?

You can quickly complete an MSME registration online via the Udyam registration portal.

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