Robert, David, and John, college graduates and founders of RDJ Engineering Services Private Limited established their manufacturing business approximately 2.5 years ago. The company works in engineering goods manufacturing. As their business is expanding rapidly, they need funding to buy new machinery and working capital. The cost of the machinery was Rs. 49 lacs (Including GST and installation). The remaining Rs. 26 lacs were required to purchase raw materials and other working capital.
Considering their current requirement in mind, they approached their current banker. However, the current banker insisted on a mortgage, which posed a challenge for Robert, David, and John. Robert, David, and John being the 1st generation entrepreneurs had not created the assets at that time. Whatever the profits they used to earn, they invested back in the business to scale it. This is shown in their last year’s turnover of Rs. 8.75 crores.
After facing rejections from their existing bankers, they were a bit disappointed. They tried to get some advice from colleagues who are already in the business for the last couple of decades. One of them has suggested, Terkar Capital to them.
Hence, they approached Terkar Capital and asked for financial assistance. Our executives analyzed their cases in detail and recommended them for Unsecured Funding under CGTMSE. This loan, a scheme of the government of India, is a perfect fit for their business in MSME growing faster but facing a working capital challenge because of a lack of collateral. Let us see the CGTMSE Loan Process.
| Company Turnover | Rs. 8.75 Crores |
| Amount Required | Rs. 75 lakhs |
| Amount For Machinery | Rs. 49 Lacs (Including GST) |
| The amount for Working Capital | Rs. 26 Lacs |
| Mortgage Available | No Mortgage |
| Company Industry | Engineering Manufacturing |
CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises) is a trust that provides financial institutions with credit guarantees to provide loans to SMEs and MSMEs. The CGTMSE scheme primarily envisages the provision of loans to first-generation entrepreneurs so that they can flourish in a competitive environment without the burden of security or third-party guarantees and so on.
After receiving all the required inputs from RDJ Engineering Services Private Limited, our team of experts took this assignment ahead. We arranged for the prerequisite and took the soft approval from a couple of financial institutions who can justify RDJ Engineering requirements from the current as well as long-term perspective.
We executed the whole operational and documentation process in 3 working days. At the end of the week (6th working day), we successfully disbursed the amount of rupees 49 lacs to RDJ Engineering machine vendor and opened CC exposure of Rs. 26 lacs, which RDJ can use as working capital. And the interest will be paid as and when the funds are used.
| Business Commencement Year | 2018 |
| Amount Disbursed For Machine | Rs. 49 lacs |
| Amount Disbursed For Working Capital (CC) | Rs. 26 lacs |
| Total Execution Time | 6 Working Days. |
| Customer Service Experience | 4/5 |
At Terkar Capital, we understand the challenges faced by growing businesses like RDJ Engineering Services Private Limited. Robert, David, and John, the entrepreneurs behind the company, were seeking funding to expand their operations and meet their working capital needs. Despite facing rejections from traditional bankers due to a lack of collateral, they turned to us for financial assistance. Our team of experts analyzed their case and recommended them for Unsecured Funding under the CGTMSE scheme, which provides loans to first-generation entrepreneurs without the burden of security or third-party guarantees.
Do reach out to us with any questions or doubts. To ensure that you get the best service, please contact us before visiting.
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