Getting a loan for business requires the intention to grow and a clear understanding of the enterprise’s needs. There are various types of loans that are available to meet different needs of the business or individual. One can avail of home loans, student loans, car loans, land loans, etc. These come under the umbrella of personal loans, i.e. loans taken for personal needs.
MSMEs–Micro, Small, and Medium enterprises, can avail of SME business loans as initial working capital or to buy or upgrade equipment and raw materials, to pay employee salaries, or even enhance the cash flow of the business. However, there are specific prerequisites that need to be met by the businesses in order to get an MSME business loan.
The eligibility criteria for a small business loan are:
Eligibility criteria for private business loans/ MSME business loans.
|The age of the applicant should be between 21 and 65.|
|The age of the business should be a minimum of 1 year.|
|Business turnover as defined by the bank/finance company/lender.|
|Good repayment history which shows the stability of the business.|
|A good credit score and creditworthiness.|
MSMEs can apply for loans from the Government as well. It will require a comprehensive list of documents and other criteria mentioned above. The wait time may vary, sometimes as long as a month. Most SME business loans are required on a fast-track timeline, as it is what small businesses depend on. Therefore, a fast turnaround period is necessary for MSME business loans.
There is a solution to this problem of reducing the waiting period, especially for those small and medium businesses looking for loans in private finance companies in Chennai.
Getting a business loan from a private finance company
JP Finance is one of the most trusted private finance companies in Chennai. JP Finance specializes in business loans and is the perfect option for a quick and easy SME business loan within an impressive turnaround time of just 48 Hrs. This means that from start to finish, the application for a loan to disbursal will take only 2 days. It is an excellent option for those SMEs/MSMEs in need of quick loan approval. As the revenue is not as high as big businesses, the requirement of getting a loan to finance the necessary and time-bound actions is of utmost importance.
JP Finance will provide your MSME with a business loan with the lowest interest rates, collateral-free, and up to 1 crore. And they provide a flexible repayment and tenure of the loan.
Listed below are the eligibility criteria for an MSME/ SME loan from JP Finance.