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MSME loan in Visakhapatnam

The executive capital of Andhra Pradesh, Visakhapatnam is one of the fastest-growing cities of India. It houses the Eastern Command of Indian Navy. Seafood processing and export is the main driver of this city’s economy. Along with that, manufacturing also contributes significantly.

Tourism also plays a vital part in Visakhapatnam’s economy. Rushikonda beach, Simhachalam temple, The Submarine, and Dolphin Nose hill are some of the prominent tourist attractions. Also, this city is well-connected with the rest of the state, and the famous Araku Valley is only 4 hours’ drive from here.

The economic development of Visakhapatnam has helped small and medium businesses in and around the city to flourish. Entrepreneurs in Vizag can use an MSME loan/SME loan to propel their aspirations instead of simply relying on angel investors or investments from non-institutional sources.

SME/MSME Loans Offer A Convenient Solution

An MSME/SME loan aims to extend the necessary financial support to businesses. Features like restriction-free usage and lack of collateral further help business owners.

Entrepreneurs can opt for government schemes as well as private financiers to avail an SME loan in Vizag. To qualify for the government schemes, individuals need to be classified as an MSME per the government’s definition.

Here are the details –

Company Size

Micro

Small

Medium

Investment Cap

Lower than Rs. 1 crore

Lower than Rs.10 crores

Lower than Rs. 20 crores

Turnover Cap

Up to Rs. 5 crores

Up to Rs. 50 crores

Up to Rs. 100 crores

Being knowledgeable about these details will help during the MSME loan process. However, it’s merely how a firm is classified. Applicants need to meet certain parameters to be eligible for an SME loan.

MSME Loan Eligibility Criteria

  • 750+ credit score
  • Single owner, partnership, a private firm, LLC, etc. can apply for an MSME loan/SME loan
  • A business vintage of at least 6 months – 1 year for government schemes and 2 years for banks and NBFCs
  • Must register an annual turnover of Rs. 25 lakhs or above (this can differ based on the lending institution)

Besides these, lenders often have specific criteria, which one needs to meet to complete this process.

MSME Loan Documents

During the application process for a business loan in Visakhapatnam, individuals must submit the following documents –

  • KYC documents
  • Business plan
  • Ownership details
  • Turnover documents such as profit and loss statement, balance sheet (CA certified)
  • Income proof of the borrower

Depending on the successful submission of documents and fulfilment of the aforementioned requirements, financial institutions decide who is eligible for this SME financing option and who is not.

However, it’s seldom wise to opt for an MSME loan via a government scheme during emergencies because the processing period is usually prolonged. On the other hand, companies just starting out or yet to firm their cash flow may find it difficult to service a loan for MSME AP offered by banks and NBFCs since they entail high interest rates and are usually rigid about repayment.

To bypass these inconveniences, entrepreneurs can opt for an MSME loan/SME loan against gold.

Reasons To Select Gold Loan As An Alternative

Gold loans can act as a perfect alternative to SME loans. Since it is a secured mode of credit, the eligibility criteria are much lenient, and a long list of documents does not precede its approval. However, borrowers can still enjoy the customer-friendly features like restriction-free usage, lower interest rate, quick processing etc.

Here are some instance where a gold loan can act as a MSME business loan in Visakhapatnam –

  • Supporting working capital
  • Buying inventory
  • Upgrading equipment
  • Setting up or expanding business

Choosing The Right Lender Is Important

When compared side-by-side, gold loans seem to fare better, as it offers a more affordable and hassle-free borrowing experience. However, these are only the basic features that nearly all lenders offer.

As an MSME in Vizag, it’s vital to be smart about the choice of lender since it can make or break your edge in this competitive market. Consider factors like LTV, interest rate, repayment options when searching for ‘gold-backed MSME loan provider near me’.

Rupeek, An Ideal Partner For Gold Loan

Rupeek focuses on increasing customer convenience and has introduced industry-first doorstep service among others to maximise the borrowing experience.

Here are some notable MSME loan/SME loan features offered by Rupeek –

  1. Our gold-backed MSME loan interest rate starts from as low as 0.79%, which makes interest payment more affordable.
  2. Customers can make the most of their gold’s value with us. Avail up to Rs. 1.5 crores as an MSME loan and finance all business needs adequately.
  3. The repayment schemes offered by us allow borrowers to select a plan as per their capabilities. They can choose from EMIs, one-time bullet payment, interest pre-payment, etc., to pay-off their debt.
  4. Moreover, with Rupeek individuals get to save up to Rs.12,377 on loan transfer. The process is simple and does not take much time to complete.
  5. We follow stringent security protocols concerning the pledged gold items. Our loan manager uses GPS fitted bags to carry the collateralised gold articles, and they’re stored in high-security vaults. Also, we provide complimentary insurance coverage on them during tenure.

Entrepreneurs can also leverage our gold overdraft facility to maintain a healthy cash flow and ensure uninterrupted operations through every seasonal demand.

Overdraft Facility By Rupeek

Customer convenience is further enhanced by the overdraft facility known as Rupeek Quick. Our current customers can pledge additional gold to gain access to an extended credit line. Hence, they can withdraw funds as per their convenience.

Also, they are responsible for paying interest only on the amount they have withdrawn, and not the entire credit line. Resultantly, they can save a substantial on repayments.

Furthermore, our presence in prominent localities of Visakhapatnam allows us to reach your doorstep within 30 minutes to comply with your loan request.

Areas Of Visakhapatnam Where Rupeek Extends Its Services

  • Andhra University
  • Akkayyapalem
  • Naval Dock Yard
  • Gajuwaka
  • Viman Nagar
  • Gopalapatnam
  • Madhurawada
  • Maharanipeta
  • Nad Junction
  • Kancharapalem
  • Mvp Colony
  • Port Area
  • Pendurthy
  • Simhachalam

An MSME loan/SME loan helps entrepreneurs to secure quick funding for their business, but the associated eligibility criteria are stringent. Hence, business owners often find it difficult to avail this financial product. On the other hand, Rupeek offers a gold loan with minimal eligibility requirements and various customer-friendly features.

So, stop searching for how to get MSME loan, and contact Rupeek for a fair, fast and flexible solution.

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Benefits of Gold Loan over MSME/SME loan.
  • <1 lakh
  • 2 lakh
  • 3 lakh
  • 5 lakh
  • 10 lakh
  • 20 lakh
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 are the eligibility criteria for an MSME loan from Rupeek?

Any individual who is of 18 years of age and possesses gold ornaments can apply for a loan from Rupeek. There are no additional criteria here. Also, an applicant needs to have valid KYC documents to complete this process.

  1. How to apply for an SME loan from Rupeek?

To apply for an SME loan from Rupeek, you need to visit the official website and register your mobile number. Once you have initiated the loan request, a company representative will get in touch with you for further processing.

  1. Which bank is best for MSME loan in Vizag?

It primarily depends on your financial needs and eligibility. Assess the bank that’s best for your needs based on factors like the loan amount offered, interest rates, processing time, repayment flexibility, and tenure,

  1. Is there any part-prepayment facility with Rupeek’s gold-backed MSME loans?

Yes, there is a part-prepayment facility available with loans from Rupeek. However, your payment amount should be more than the monthly interest, and less than full closure amount.

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