MSME loan in Tirunelveli

Technically, any business operating in the micro, small and medium category can apply for an MSME/SME loan in Tirunelveli. However, recently the government has revised the classification of small and medium scale industries. They have introduced a composite criterion where the investment and annual turnover will be taken into account. Here are the details –

1. For micro-units, investment in plant and machinery must not cross Rs. 1 crore, and the annual turnover shall not be more than Rs. 5 crores.
2. For small units, the investment should not be more than Rs. 10 crores, and annual turnover is capped at Rs. 50 crores.
3. For medium units, this threshold remains Rs. 50 crores for investment in plant and machinery and Rs. 250 crores for annual turnover.

Besides these guidelines, commercial banks, NBFCs have their own MSME loan eligibility parameters. The loan amount one can avail and the interest rate on it depends on how well an applicant meets these criteria. You can search for ‘MSME finance providers near me’ to view lender-specific eligibility criteria. 

A few common yardsticks include – 

• 750+ - Credit score
• 2 years – Minimum business vintage
• Rs. 25 lakhs – Minimum annual turnover
• Must submit financial statements (audited)
• Should provide future balance sheet to substantiate revenue projections

Along with meeting these parameters, one needs to keep the necessary documents handy to expedite this process further. Here is a list –

• Duly filled application form
• KYC documents
• Income proof of the applicant
• Business proof and associated licences and other documents

Fulfilling these requirements will enable an individual to complete the MSME loan procedure without any hiccups.

Apart from various financial institutions, GOI and the state governments also offer various schemes to help organisations obtain the required funding. Here are some highlights –

• NEEDS Scheme

Operated under Tamil Nadu Industrial Investment Corporation’s supervision, this scheme provides funding to budding entrepreneurs of the state. Business owners within the age bracket of 21-45 can apply, but they must have a diploma, degree, or vocational training from a recognised educational institution. Under this scheme, applicants will receive a subsidy of 25% of the total project cost, not going above Rs. 25 lakh.

• PMMY

Pradhan Mantri MUDRA Yojana is another notable government-backed financing scheme. It offers financial assistance of up to Rs. 10 lakhs to entrepreneurs. There are 3 sub-categories of this MSME loan/SME loan in Tirunelveli, and each is defined by a different stage of a business.

• CGTMSE scheme

Credit Guarantee Trust Fund for Micro & Small Enterprises and the Ministry of Micro, Small and Medium Enterprises and SIDBI has introduced this credit guaranteed scheme to extend financial assistance to MSMEs. The guarantee coverage available under this MSME/SME scheme ranges from 50% to 85%, depending on the status of a business and its nature of activities.

• CLCSS scheme

The Credit Linked Capital Subsidy Scheme offers a 15% subsidy on additional investments for technological upgradation of up to Rs. 1 crore. Any organisation operating in this segment can benefit from this initiative.

• MSME business loan for start-ups in 59 Minutes

The Government of India has recently launched a web-portal to provide financing options within 59 minutes. This portal will process a loan request within an hour, and applicants will receive their money within the next 7-8 working days. Enterprises can acquire a loan up to Rs. 5 crores under the MSME loan in 59 minutes scheme.

Note that nearly all govt.-backed MSME financing scheme involves a lengthy verification and disbursal process, which can often thwart plans of meeting emergency requirements.

Since MSME loans/SME loans in Tirunelveli take days to process and receive the credit amount, one can look for alternatives like gold loans. With lenders like Rupeek, you can get the necessary funds within an hour at your doorstep. Our presence in the top localities of Tirunelveli allows us to reach your address in just 30 minutes.

We offer our loan services in and around the following localities in Tirunelveli –

1. Ambasamudram
2. Kokkirakulam
3. Alwarkurichi
4. Palayankottai kalakad
5. Nanguneri
6. Vallioor
7. Kudankulam
8. Cheranmahadevi
9. Manjolai
10. Kallidaikurichi
11. Kavalkinaru

When the hard-to-meet MSME loan eligibility criteria and tedious paperwork block your borrowing means, Rupeek’s gold loan can be of avail.

Apply for a gold loan with Rupeek and see your business grow!