Planning to Apply for an MSME Loan in Bangalore? Know the Eligibility BeforehandPosted by Rupeek Fintech Pvt Ltd. on May 20th, 2021 India’s MSME sector accounts for almost 30% of India’s GDP, and it has managed to employ around 11 crore Indians. Recognizing this sector’s importance in India’s economy, the government aims to increase its contribution to almost 50% of the GDP in the coming financial years. To make this plan a reality, financial institutions operating in India have introduced different financial schemes. For regions like Bangalore, where the start-up and small business ecosystem is well-established, specially designed MSME loans in Bangalore aim to offer the required financial assistance and help such ventures to grow. Nevertheless, before applying for a loan, one must learn the eligibility criteria to avoid any rejections. Eligibility Criteria for MSME Loan Here are the eligibility criteria for an SME loan in Bangalore that every applicant needs to meet–
Note that certain MSME loan eligibility parameters can differ from one financial institution to another. Thus, individuals should go through specific requirements before applying for such a credit facility. Nevertheless, to complete the loan application successfully and without any interruption, one needs to submit certain documents. Here are the details –
Apart from these, certain financial institutions may ask for a business plan and revenue projections as a part of the documentation. Successfully meeting the eligibility norms will decide the loan amount one is qualified for and the interest rate that will be charged. Subsequently, individuals can use a business loan calculator to find the monthly instalment and plan their finances accordingly. Along with the eligibility criteria of an MSME loan in Bangalore, individuals must be aware of the updated definition of small, medium and, micro organizations. New Definition of MSME As a part of At minibar Bharat Abhiyan, on 1st June 2020, the Union government has revised the definition of MSMEs operating in this country. Here are the details –
The previous regime did not include any criteria regarding the turnover of an enterprise; the focus was solely on the investment amount. Also, there was segregation between the service and manufacturing sector. However, under new regulations, this distinction has been done away with to include more enterprises under the MSME purview. Nonetheless, having an MSME registration certificate is mandatory to acquire funds and associated benefits from any financial institution and various government-backed schemes. Thus, enterprises yet to obtain an MSME certificate might be denied such benefits. Those organizations can easily bypass this hassle of sourcing an SME loan without collateral by opting for a gold loan. Available against gold articles, it is a quick and affordable mode of business financing. Furthermore, the associated eligibility criteria are lenient, and a short documentation process further amplifies customer convenience. Entrepreneurs can also take the assistance of an online gold loan calculator Bangalore to find out their loan amount, EMIs, and other details to help them make an informed decision. Nevertheless, one shall apply for an MSME loan in Bangalore, be it secured or unsecured, only after checking the eligibility and document requirements. Proceeding certainly in this regard improves chances of approval and speeds up this entire process. Author’s Bio: Rupeek Fintech is a Bengaluru-based gold loan company extending online services to over 5000+ areas in India. Within 5 years of its establishment, the company has achieved RBI certification and a 1 lakh+ customer base, making it the country’s #1 online gold loan provider. Like it? Share it!More by this author |