A Guide to MSME Loans for New Business: Advantages, Eligibility and Application Process

The Micro, Small, and Medium Enterprises (MSME) sector is a key driver of economic growth in India. So, financing the MSME sector for new business helps a country grow. MSME loans, for that matter, are a financial instrument designed to meet the needs of existing or new businesses classified as MSMEs. These loans can be used as a source of working capital, expansion, technology adoption, and more. 

We will provide here an overview of the secured/unsecured financing options, including the eligibility requirements, and the application process.

Advantages of MSME loans

MSME loans are available to businesses of all types and sizes, making it easy for entrepreneurs and new businesses to get the funding they need. It offers high loan amounts and flexible repayment terms, and they have competitive interest rates (ROI).

Msme loans for new business without collateral

Getting an MSME loan without collateral can be challenging, However, there are options available that cater to the specific needs of startups and small businesses. Here are some insights for obtaining an MSME loan for a new business without collateral:

Government Schemes:

Many governments offer specific schemes and programs to support MSMEs, including loans without collateral. CGTMSE is one such government-backed scheme tailored to meet specific requirements of MSMEs. Hence, we explore various government initiatives designed to promote entrepreneurship and small business development.

• Credit Guarantee Funds:

Some financial institutions provide collateral-free loans to MSMEs with the support of credit guarantee funds. These funds act as a guarantee for the loan in the absence of collateral, making it less risky for lenders.

• Start-Up Loans:

Financial institutions and government agencies often have special loan programs for startups with good financial ratios. These loans may not require collateral, but they may have specific eligibility criteria related to the startup vintage, the nature of the business and others.

• Non-Banking Financial Companies (NBFCs):

NBFCs are more flexible than traditional banks and may be willing to provide unsecured loans to MSMEs. However, interest rates might be higher compared to secured loans.

• Microfinance Institutions:

Microfinance institutions specialise in providing financial services to small businesses and entrepreneurs, often without the need for collateral. They focus on supporting the growth of micro-enterprises.

For businesses with collateral

Securing MSME loans with collateral has its challenges. However, it provides a valuable avenue for obtaining the financial support needed to get your business off the ground. So, one effective strategy is to consider pledging collateral when applying for these loans. 

By offering property or equipment as security, businesses not only enhance their chances of loan approval but also stand to benefit from more favourable interest rates. This approach is a wise and sensible way to secure funding, aiding your business growth. Terkar Capital stands out as a reliable firm to explore MSME loans with collateral, ensuring a seamless and supportive path to business growth.

Eligibility Requirements

To be eligible for an MSME loans, you must meet the following requirements:

• Citizen of India

• at least 3 years of business continuity.

• Healthy credit history when opting for unsecured funding

• Or sufficient collateral when secured funding

These are typically offered for terms of 1 to 5 years. The interest rate on an MSME loan will vary depending on the lender and the creditworthiness of the borrower. 

Application Process

Here is Terkar Capital’s process to avail MSME loan

• Understanding the client’s requirement

• Financial SWOT analysis

• Documentation

• Soft approval from a financial institution

• Actual submission of documents

• Disbursement

• Funding as required

Conclusion

MSME loans can be a great way to finance your business growth. So, at Terkar Capital We make sure that, by following the necessary steps, you can increase your chances of being approved for an MSME loan and getting the funds you need to scale or grow your business.

  

 

 

 

Revolutionize the Healthcare industry with Cutting-Edge Medical Equipment Financing Solutions

 

Medical Equipment Finance

In today’s rapidly changing healthcare industry, staying ahead of the competition often requires significant financing for cutting-edge medical equipment. For hospitals looking to expand their services and improve patient care, it is essential to have access to the right financial resources. So, Terkar Capital is here to help, providing customized solutions to meet the needs of healthcare or medical equipment finance for hospitals in India.

Eligibility Criteria

It is important to understand the eligibility criteria before the application process.

Terkar Capital provides medical equipment financing to a variety of healthcare entities, including hospitals, clinics, diagnostic centres, and medical professionals. So, to be eligible for medical equipment financing, healthcare institutions must demonstrate a stable financial history, a viable business plan, and the ability to repay the loan. Our financial experts work closely with healthcare professionals to ensure a smooth eligibility assessment process.

Get up to 15 cr doctors funding for clinical setup with ROI as low as 10.5% PA.

Benefits of Medical Equipment Finance

Obtaining medical equipment financing from Terkar Capital can provide you with a variety of advantages. 

One of the main benefits is that you can preserve your capital. Instead of depleting your reserves to purchase expensive medical equipment outright, you can keep your funds for other essential aspects of your healthcare business, such as hiring skilled personnel or expanding your facility. Furthermore – 

• We offer competitive interest rates

• Flexible repayment terms

• Equipping healthcare ventures with state-of-the-art equipment helps to foster growth and innovation within the industry.

To learn more about professional loans for doctors, please click here.

Medical Equipment Financing Process

Terkar Capital’s application process is designed to be hassle-free and efficient. The process starts with a consultation with our experienced financial expert, who does the financial SWOT analysis to assess your needs and financial situation. Once your eligibility is confirmed, the team helps you choose the most appropriate financing options that meet your requirements.

Terkar Capital streamlines the documentation process by guiding you through the paperwork and ensuring all necessary documents are in order. Our team works diligently to expedite the approval process so that you will promptly get the loan against the medical equipment you need.

Conclusion

Medical equipment finance at Terkar Capital is more than just a financial solution; it is also a catalyst for business growth and innovation in the healthcare industry. By understanding the eligibility criteria, embracing the benefits, and following the streamlined application process, healthcare ventures can unlock new opportunities, enhance patient care, and drive their businesses to new heights. 

Contact Terkar Capital today and take the first step towards a brighter, more prosperous future for your healthcare industry.

Empowering Medical Professionals with Terkar Capital's Financial Options

 

Loans for Medical Professionals

 

In a country like India with billions of people, the value of a doctor or other medical professional is off the charts. The demand for medical services is essential, but unfortunately, financial constraints often limit their practice expansion and prevent them from meeting the healthcare needs of the vast majority of people. At Terkar Capital, we strive to bridge this gap by providing Loans for Medical Professionals / Doctors to fulfil their noble mission.

 

We will ensure that funding is not a problem in meeting the needs for practice expansion, increasing bed capacity, purchasing medical equipment, hiring staff, financing new setups etc. We do not want a lack of resources to prevent you from achieving your dreams.

 

Financial Instruments for Doctors

 

Some of the best-fit financial instruments applicable to medical professionals are those that can help them achieve their financial goals. These may include:

 

# Unsecured Funding

This does not require any form of security or collateral. Instead, the lender relies on the borrower's creditworthiness. As a result, having a good credit score is essential for getting approved for an unsecured loan.

 

# Working Capital (Unsecured)

A working capital loan is used to finance a company's day-to-day operations, such as paying employees and suppliers. Many businesses do not have consistent sales or revenue throughout the year, so they may need to borrow funding to keep operating smoothly.

 

# Equipment Finance

Medical professionals need expensive equipment to start a practice or hospital. So, medical equipment loans can help finance such equipment.

 

# Project Finance

It is financing for long-term projects like hospitals and infrastructure. Medical professionals can use it to fund new construction or expansion.

 

Features of Terkar Capital's Financial Assistance:

●       No-collateral loans are specifically designed for medical professionals

●       Quick approval and disbursement process

●       Custom funding for medical professionals

●       Repayment schedule that suits your financial situation.

●       Expert guidance to help you navigate through the plethora of financial products

 

Documents required for Doctors Loan

1. KYC documents of Firm/Company: GST Certificate, Udyam Certificate, PAN Card, Rent agreement/Electricity bill, Shop Act (applicable only in Maharashtra)
2. KYC documents of Proprietor/Partner/Director: PAN Card, Aadhar Card, Passport size photo, Rent agreement/Electricity bill (as ownership proof)
3. Financials/Income documents: Last 2-year financials: IT Return (Saral Page), COI, Balance Sheet, P&L statement, Financial notes, Form 26 AS for the last 2 years
4. Statement of recent bank account activity for the past 6 months.
5. Qualification documents: Degree certificate, Certificate of practice (MCI/IMA approved)

 

Eligibility for Doctors Loan

1. Must be a licensed physician.
2. 4 years of work experience after graduation is required.
3. Physiotherapists need 5 years of experience after graduation.
4. Must be between 25 to 65 age group to apply.
5. The minimum annual income of 1 lakh INR and Two years of profitability required at the application

 

How to get Loans for Medical Professionals?

Terkar Capital can provide financing solutions to medical professionals. You don't have to go through the hassle of applying to multiple banks and NBFCs. Terkar Capital will take care of everything from submitting your application to the financial institution to disbursing the funds. Our expert team will handle everything for you. All you need to do is provide us with primary and master's documents.

 

Conclusion

We assist medical professionals in India, with a focus on loans for medical professionals and financing options to help them overcome financial constraints and expand their practice. It covers various financial instruments such as unsecured funding, working capital loans, equipment finance, and project finance that are suitable for doctors.

 

FAQs

What is the rate of interest?

The interest rate starts from 10.5%

Is a CIBIL score important to avail doctor loan?

Yes, while determining how much money to distribute, banks and NBFCs take into account your CIBIL score and repayment history.

 

How long will it take for the loan to be approved and disbursed?

Loan approval and disbursement time varies. However, we assist you with quick loan approval and disbursal within 24 hours of application clearance.

 

What are the reasons that may lead to the rejection of your application?

Even if you fulfil all the requirements, your application can be rejected as -

●       Poor CIBIL score

●       Discrepancy in the application

●       High debt-to-income ratio

●       Multiple loan rejections

How much should the CIBIL score be required to avail of a loan for doctors?

A CIBIL score of 700 or above is considered good to avail of a loan for doctors.

 

 

Take charge of your company's growth with Structured Debt Financing

 

 

Structured Debt Finance

Every company has its own unique structure. The company's operations, financial requirements, and everything else changes in response to changes in the industry and the company's stage of development. At one point in time, the company cannot raise funds without security. So, Collateral becomes an integral part of the debt capital raising process. However, what if the company crosses the turnover of Rs. 500 crores and needs the working capital facility or expansion fund of Rs. 100 crores or 150 crores? In this case, the structured debt fund comes into the picture.

What is Structure Debt Finance?

Structured debt is the financial product which is the combination of many financial instruments and if required, syndication as well. This is 100% tailor made - meant for company solutions only.

 

 Why Structured Debt?

 1. Tailormade Solution

At structure debt, when the funds are raised, those are raised considering the company at a center point. The debt instruments are arranged keeping the company requirement in mind. It may be the combination of Term Loan, OD, CC, Foreign currency funding, Trade Finance etc.

2. Accelerates Growth

There is a point, where the regular debt instruments don't work well for the company. And this becomes one of the main reasons for the holding company’s growth. In order to get out of the challenge, the structured debt works well for the company.

3. Funding With / Without Collateral

It is always not necessary to have the collateral in place to raise the funding. However, the cash flow of the company is the important consideration. We at Terkar Capital, understand the strength areas of the company and based on the areas we raise the funding. If the good proven and prospective cash flow is in place, collateral would hardly be the concern.

 

4. No Higher Amount Restrictions

There are many companies across India and globe who deal in crores and thousands of crores. These companies have the high requirement of funds. Under structured debt, there is no capping for raising the funds. It may start with a minimum 5 million USD and can go up to any amount.

 

5. With or Without Credit Rating

As stated earlier, when it comes to raising the funding under structured debt - it can be done for the company bearing the credit rating or not. When a company deals with Rs. 100+ crores of turnover, there is a high possibility that the company may lag in any of the areas, which may drag its credit rating. As long as the company has good cash flow and good work orders in hand the structured debt can be worked out well.

 

 

Empower your company’s growth with Terkar Capital's specialized structured debt financing instrument. We understand the company's strengths, challenges, and prospects. Based on our internal assessment, we decide the best course of action to raise funds. We work as a team with the borrower and lender to raise the optimal amount of funds. We have a proper and professional approach to raising funds.

 

Process To Raise Structure Debt -

 

Raising the debt for any company under structured debt is as good as raising any other debt. Below are the few Standard Operating Process team Terkar Capital follows -

 

 

 

FAQ’s

 

1. What is the minimum amount that can be raised under structured debt?

The minimum amount can start with Rs. 50 crores onward. Again that depends on the cash flow of the company.

 

2. What is the maximum amount that can be raised?

Under  structured debt, there is no capping for the upper limit for raising the funds.

 

3. Collateral required for raising the funds?

Collateral may or may not be part of the requirement. Mostly this will be decided on the financials of the company.

 

4. What is the interest Rate?

The ROI generally depends on the company, its financials and currency under which the company is seeking the funds.

 

5. What is the turnaround time required to raise the funds?

Generally it takes around 25-35 working days, as long as all the documents are timely made available.

 

Insights on Effective Management of Working Capital

 

Overview

 

Working capital is the difference between current assets and current liabilities. It pertains to the amount by which current assets exceed current liabilities. Current assets encompass cash, inventory, accounts receivables, and other assets that can be converted into cash within a year. Conversely, current liabilities refer to the company's short-term obligations, including accounts payable, taxes, and other expenses due within a year. In this article, we will explore valuable insights on how to efficiently manage the working capital cycle, ensuring smooth operations and financial stability.

 

Working Capital = Current Assets - Current Liabilities

 

 

Concept of the Working Capital Cycle

Working capital holds significant importance for businesses across various industries, including services, manufacturing, trading, and agriculture. It is particularly crucial for cash and carries businesses.

The working capital cycle represents the duration it takes for a business to convert input resources into cash through the process of production and sales. These inputs can encompass raw materials, electricity, wages, and administrative salaries. When analyzing the working capital cycle, two key aspects should be considered:

●       The industry-specific

●       The company's operations specific

A shorter working capital cycle enhances cash flow and reduces the risk of customer payment defaults, making it a desirable goal for businesses.

 

 What is the purpose of Working Capital?

There are two primary situations where working capital becomes necessary.

●       One is when your current liabilities (especially creditors) are more Or immediately payable than your current assets (especially debtors) are late receivable. So, In simpler terms, when you have to pay your creditors immediately while your debtors take their time to settle their payments. This situation poses a challenge for your business. In the long run, this may hit the cash flow of the company, you need to fix it immediately.

●       Another condition is where your work orders have increased to a substantial level. So as the company grows, there is an increase in demand for the product. To manage the high demand, you must secure the necessary working capital.

 

The key components of working capital are:

 

●       Current assets: These are assets that can be quickly converted into cash within a year, such as cash and cash equivalents, accounts receivable, inventory, and short-term investments.

 

●       Current liabilities: These are liabilities that need to be settled within a year, such as accounts payable, short-term loans, and accrued expenses.

 

●       Operating cycle: This is the time it takes for a company to convert its inventory into cash, such as the time it takes to purchase raw materials, manufacture and sell products, and collect payment from customers.

 

●       Cash conversion cycle: This is the time it takes for a company to convert its investments in inventory and accounts receivable into cash, minus the time it takes to pay off its accounts payable.

 

●       Net working capital: This is the difference between a company's current assets and current liabilities, and it represents the amount of capital available for day-to-day operations.

 

Significance of Adequate working capital:

 

Adequate working capital is always best for the company. When a company approximately uses its assets, it can efficiently operate the business. The salary payments, daily expenses, or wage payments are never delayed and all the work is effective. Adequate working capital helps reduce the wastage of resources and benefits the goodwill of the company.

 

What happens if working capital slips?

 

For a business to function smoothly, it relies on its working capital. As cash flow is essential for any business to thrive and it serves as the lifeblood of the company. So, it is essential to have sufficient working capital to ensure continuous operations and growth. On the other hand, deficient working capital can lead to various challenges such as delayed payments of salaries and wages, difficulty in managing day-to-day operations, and other complications. To avoid such hindrances, it is crucial to maintain sufficient working capital.

 

How to Raise a Collateral Free Working Capital Fund?

 

In cases where a company urgently requires working capital, it can opt for collateral-free working capital funding. Terkar Capital recognizes the significance of efficient cash flow for businesses to thrive and operate seamlessly on a day-to-day basis. Thus, for companies that require working capital urgently, Terkar Capital is a perfect choice. During financial crises, we assist businesses in swiftly raising funds to meet their working capital needs through various collateral-free financing options such as NBFCs, equity capital, financial aid from relatives and acquaintances, applying for business grants, or seeking assistance from financial institutions.