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FAQs on Business loans for MSME

The micro, small and medium enterprises sector is one of the largest providers of employment and industrial output in the country. As much as 45% of industrial production and 40% of India’s exports come from the MSME sector. Hence, the need for business finance is also higher in this sector. So, to avail MSME loan without security, Reach Terkar Capital.

1. What is MSME stands for?

The government of India understands the value of the contribution of the MSME sector. There is a dedicated ministry working on this segment. As per the Ministry of MSME –Micro Enterprises are the ones where the investment in plant and machinery is not more than Rs. 25 lacs. Small Enterprises are the ones where the investment in plant and machinery is more than Rs. 25 lacs and less than Rs. 5 crores. Medium enterprises are the ones where the investment in plant and machinery is more than Rs. 5 crores but not exceeding Rs. 10 crores.

2. Who is eligible for MSME Loan?

There is a standard definition given by the government of India.

  • A stabilized business that has been in operation for more than 6 months.
  • A minimum turnover of 90,000 or more in the 3 months heralding your loan application.
  • The business should not fall under the blacklisted/ejected list for SBA finance.
  • The physical location of your business should not be on the negative location list.
  • Trusts, NGOs, and charitable organizations are not acceptable for small business loans.

If you are not aware of your business falls under a restricted category or location, you can contact us to confirm your eligibility.

3. How to apply for MSME loan?

If you are looking ahead to avail and make the most out of this ambitious initiative by the management, you must consider Terkar Capital for availing of the MSME Loan Scheme. We are a trustworthy lending institution. Even if you are uncertain about the scheme; the executives in Terkar Capital will explain to you the complete procedure, client privacy, and requirements are prioritized here and it has been helping such small and micro enterprises to flourish over the years.

4. What are the product under MSME Loan?

Identifying that business loans can be used for setting up a new enterprise or climbing up (expansion, diversification, modernization, technology up-gradation). These can be for the following:

  • Acquisition of Plant and Machinery including lab equipment, testing equipment, furniture, electric fittings, etc
  • Meeting working capital requirements would be as raw materials, stock-in-progress, finished goods, etc
  • Trade Finance (Bill discounting) – for paying the creditors while anticipating payment from debtors
  • Launch of new product variety, expansion of business, warehousing need, credit for marketing and advertising purpose
  • Additional monetary compensation for any eligible purpose.

5. What is the interest rate MSME loan?

The MSME loan rate of interest is always cheaper compared to other loans. However, still, the rate of interest varies and depends upon the end use of the funds and the life of the business.

6. How Terkar Capital Helps in getting business loans for MSME?

Terkar Capital is one of the well-established MSME loan providers in Pune, Mumbai, and across India. With a highly skilled and dedicated team at Terkar Capital, we ensure that we fulfill our client’s needs and requirements. We arrange multiple financial instruments for our clients with the best interest rate options. However, the relationship doesn’t end with the sanctioning of the loan. We maintain to have a lifetime relationship with the customer to be of help whenever required.

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