Looking for business loans in Hyderabad? Here’s everything you need to know

Hyderabad is one of the most important business centres in India. The city is a hive of corporate activity; and shopping malls, restaurants, pubs, multiplexes, and other enterprises also thrive here. Hyderabad is well-known for its wonderful tourist spots, which are popular with visitors worldwide. Business opportunities abound in the city, and if you want to expand your business and want to seek a business loan in Hyderabad, this article is for you.

We’ll take a look at some of the basic parameters that you need to keep in mind before applying for a business loan in Hyderabad. But, first, let’s understand how business loans can be helpful.

Why do you need an MSME loan?

The resources and capital that big companies can access may not be available to micro-small-and-medium enterprises (MSMEs). MSMEs have various opportunities to grow, but they usually suffer because of the lack of formalization and property collateral, which makes it difficult for them to access capital. 

MSME loans are a significant source of funding for business owners who want their start or expand their small business. 

Some MSME loan features are:

  • MSME loan is intended to promote the flow of credit in the MSME market.
  • These loans aim to introduce technical upgrades to the small business market.
  • MSME loans provide the small-scale industry with overall growth through capacity development.
  • Sole ownership firms, proprietorship, partnership firms, private limited companies, public limited companies, manufacturing, trading or service-based micro- and small businesses are all eligible for MSME loans, except agriculture and self-help organizations, educational establishments and teaching institutions.
  • MSME loans may be secured or unsecured depending on the borrower’s repayment ability and the lender’s terms and conditions.
  • Interest rates on MSME loans differ from lender to lender and collateral. 
  • The loan amount can also vary depending on the lender and the borrower, similar to interest rates. 

Eligibility criteria for a business loan in Hyderabad

  1. The business should be part of the manufacturing, trading or services sector.
  2. Manufacturing businesses should be at least 2 years old; trading companies should also be 2 years old; and services businesses should be a minimum of 3 years old.
  3. The business’ pincode should be in an area where the NBFC currently offers services. 
  4. Total monthly turnover of the business should be greater than Rs. 50,000 and less than Rs. 2 crores.
  5. The requested loan amount should be between Rs. 50,000 and Rs. 30 lakhs.
  6. The business type and business sector combination should be valid.
  7. There is a list of sub-sectors that are excluded, and if your business falls under one of these, your application will be rejected. 

To take advantage of MSME loans, the borrower needs to provide certain.  These include:

  • Personal KYC Aadhaar, PAN, Voter ID, Driving License, or Passport.
  • Address proof: Service bills such as bills for power, water or broadband, ration cards, and rental agreements.
  • Finance proof: ITR papers, profit and loss accounts, banking statements or copies of passbooks over the last two years.
  • Company-related documents: Certificates of firm registration, technical certificates in the case of self-employed practitioners, proof of business turnover for sole proprietors, relationship agreements for business partners and, where applicable, the Memorandum of Partnerships, company PAN, Udhayam Registration and others.

However, keep in mind that the eligibility criteria and documentation requirements can differ from lender to lender. You should only get a loan from reputed NBFCs like Kinara Capital. They offer business loans in Hyderabad without any property collateral. They also offer special discounts to women entrepreneurs. Visit their website to know more.

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