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MSME Loans FAQs

FAQs on Business loans for MSME

Business loans for MSMEs

The MSME sector is a significant part of the Indian economy, providing jobs and contributing to industrial output. It requires finance for working capital, equipment, and expansion. Sources include banks, NBFCs, government schemes, and crowdfunding platforms. So, If you are seeking business loans for MSME without collateral, Terkar Capital is here to assist you.

1. What is MSME stands for?

The Government of India recognizes 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 those with an investment in plant and machinery of not more than Rs. 25 lakhs. Small Enterprises are those with an investment in plant and machinery of more than Rs. 25 lakhs but less than Rs. 5 crores. Medium enterprises are those with an investment in plant and machinery of 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 that your business falls under a restricted category or location, you can reach out 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; our executives 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 MSME interest rate?

MSME loans typically have lower interest rates than other types of loans. However, the interest rate can vary depending on the purpose of the loan and the age of the business.

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

Terkar Capital recognizes the importance of the MSME sector and offers business loans to MSMEs without the need for security. So, with a highly skilled and dedicated team, we ensure to fulfil 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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