How to Apply for MSME Loan in Delhi with Low Credit Score?Posted by Rupeek Fintech Pvt Ltd. on May 18th, 2021 Amidst the increasing proliferation of digital mediums and more opportunities to promote new businesses, India’s MSME sector has achieved substantial growth over the years. Despite the massive economic crisis, India has managed to reclaim its position mainly because of micro, small, and medium enterprises. Case in point, this sector recorded US$ 7.5 billion worth of transactions in the Government e-Marketplace until September 2020. Comparatively, new MSMEs had endured a lot due tothis economic hardship, which is why young entrepreneurs inevitably turned towards MSME loan in Delhi. However, the CIBIL score remains a crucial factor while applying for these loans. Since it acts as an indicator of the company’s future repayment capability, applicants with low credit score might not receive approval for their loan application. As an alternative, individuals can opt for secured financing options or find other ways to get an MSME loan with a poor credit score. Alternative Ways to Avail MSME Loans with Low CIBIL Score Having a credit score lower than 750 not only creates unwanted hassle during the MSME loan apply online process but also makes interest rates unreasonably higher. Here is what you can do when a low CIBIL score is acting as a barrier: 1) Opt for a Lender That Does Not Do Credit Checks Usually, most lending institutions check a business owner’s repayment capacity and monetary stability before sanctioning a loan. Aspects like business vintage, type, and company’s yearly turnover are evaluated along with repayment track record. However, there are some NBFCs that do not emphasise on the latter part. Thus, borrowers only need to meet the other parameters to get approval. Involving a secure guarantor or co-applicant with good repayment history is another smart way to ensure approval from lenders. It adds credibility to your application for an MSME loan in Delhi. In case a low credit score is acting as an impediment, utilise the overdraft facility with your existing financial institution. It’s essentially a credit limit that a financier extends to their current customers. In this case, interest rates get imposed on only the amount that you will utilise. Such facilities are also available on some of the secured loan variants. This particular loan type does not focus on the CIBIL score part.Therefore, obtaining the necessary funds becomes easier with the peer-to-peer lending option. However, a major drawback is immoderate interest rates that eventually becomes challenging when managed, along with other financial liabilities. Business persons can also choose secured financing options like gold loans from leading NBFCs like Rupeek Fintech. Lending institutions seldom emphasise on credit score when evaluating an application. With Rupeek, applicants only need to submit gold jewellery as collateral to obtain up to Rs.1.5 crores against minimal documents. It also features an online gold loan calculator to help borrowers estimate the amount available against their valuables. The RBI-certified organisation extends online services to over 5000 areas across the country. In order to apply for gold-backed MSME loans, all you need to do is simply voice search by ‘gold loan providers near me’ and find your nearest location of Rupeek services to get gold loans at doorstep. Make sure to check the basic requirements and EMI estimation as well before availing a large amount to support your business. With several schemes getting introduced by the Government and lenders offering multiple offers, the MSME sector is advantageously positioned. However, the stringent eligibility norms, especially concerning credit score, and lengthy documentation procedure for MSME loans in Delhi, can be an obstacle. Thus, entrepreneurs with low credit score can consider the aforementioned ways to eliminate the barrier and meet their financial requirements conveniently. Like it? Share it! More by this author |